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TRANSCANADA TO BUY INTEREST IN ANG

June 22, 1992

TransCanada PipeLines Ltd., Calgary, has agreed to buy Pacific Gas Transmission Co.'s 49% interest in Alberta Natural Gas Co. Ltd. (ANG) for $97 million (U.S.). PGT is a wholly owned subsidiary of Pacific Gas & Electric Co., San Francisco. The sale, to be complete June 30, is expected to result in an after tax gain for PG&E of about $20 million. The transaction, approved by PGT and TransCanada boards, is subject to regulatory approvals.

TransCanada PipeLines Ltd., Calgary, has agreed to buy Pacific Gas Transmission Co.'s 49% interest in Alberta Natural Gas Co. Ltd. (ANG) for $97 million (U.S.).

PGT is a wholly owned subsidiary of Pacific Gas & Electric Co., San Francisco.

The sale, to be complete June 30, is expected to result in an after tax gain for PG&E of about $20 million. The transaction, approved by PGT and TransCanada boards, is subject to regulatory approvals.

Stephen P. Reynolds, PGT president and chief executive officer, said, "TransCanada's acquisition of the ANG shares will contribute to favorable completion of the Canadian segment of the PGT-PG&E pipeline expansion."

The $1.7 billion expansion is on schedule for completion in November 1993. To date, $642 million has been committed to the project and 113 miles of pipe have been laid.

PG&E and TransCanada have had preliminary discussions regarding the possible purchase of PGT. However, PG&E and TransCanada agreed to defer the talks to allow more time for restructuring of gas purchase contracts between Alberta and Southern Gas Co. Ltd. (A&S) and Canadian gas producers. A&S is a subsidiary of PG&E.