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SASKENERGY, TRANSGAS PLAN $100 MILLION INVESTMENT TO EXTEND SERVICE, SUPPORT INDUSTRY

Released on December 18, 1998

SaskEnergy President and Chief Executive Officer Ron Clark today

announced the corporation's 1999 capital program. The corporation

will make a $50 million investment to extend service and support

industry, growth and jobs inside Saskatchewan, bringing the two-year

total to about $100 million.



"For 45 years, our employees have been delivering safe, reliable and

low cost natural gas service to our customers. Ensuring that as many

Saskatchewan families and businesses as possible receive the cost

saving benefits of natural gas service will always be job number one

at SaskEnergy, bar none."



Residents in about 90 per cent of the province's communities are

connected to the SaskEnergy network. Continuing to connect those

remaining customers will be a major focus of the corporation's 1999

investment efforts.



"We're optimistic that we can connect another 4,500 customers to our network in 1999, following a very busy year in 1998 with some 4,500 new customers," Clark said. "We'll keep working with resort

communities and rural customers, and continue to expand the boundaries of SaskEnergy's Distribution Network."



Sixteen new communities and 31 new agricultural developments were connected to the SaskEnergy network in 1998. Estimated annual energy savings for these customers will surpass $1 million.



About 30 new communities have been identified as potential new additions to the SaskEnergy Network in 1999. To help potential customers realize these benefits by defraying initial

installation costs, SaskEnergy Customer Financing was introduced this year. The program allows customers to pay as little as one quarter of the initial connection costs, and pay off the remaining balance on a term of up to five years.



"We also established the SaskEnergy Dealer Network with some 63 private contractors and dealers located from Meadow Lake in the north to Estevan in the south. This unique partnership has allowed us to deliver appliance financing and new customer choices across Saskatchewan."



Clark added that TransGas, SaskEnergy's wholly owned subsidiary, will continue its efforts to support the resurgence in the natural gas industry in province.



"With an expected 700 wells drilled in the province this year, the most since 1994, TransGas will continue to work with the producer community to support jobs, growth and local communities,"

Clark said.



"By working co-operatively and providing competitive transmission rates, TransGas has played an active role in supporting Saskatchewan well drilling and aiding the industry in moving gas to meet Saskatchewan markets.



"Our commitment to Saskatchewan remains clear. Over the past five years, we've invested about $400 million in Saskatchewan and supported approximately 5,700 jobs in our province," Clark said.

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For more information please call:



Doug Kelln

Vice President, Distribution Utility

777-9568

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