DBRS Conf Terasen Pipelines (Trans Mountain) Inc. at A(low)

Dominion Bond Rating Service (“DBRS”) has today confirmed the ratings of Terasen Pipelines (Trans Mountain) Inc. (“Trans Mountain” or the “Company”) as indicated above. The trend is Stable.

The rating action follows the announcement that Kinder Morgan Inc. (“KMI”) will acquire Terasen Inc. (“Terasen”) for approximately US$3.1 billion (to be financed on a 65% cash/35% common stock basis), plus approximately US$2.5 billion of assumed debt, resulting in an energy company with a pro forma enterprise value of approximately US$19.2 billion. The acquisition must be approved by 75% of Terasen shareholders who will attend a special meeting held before October 31, 2005 (see concurrent DBRS press releases on Terasen and KMI). Terasen owns 100% of Trans Mountain.

In view of the stand-alone nature of these operations, DBRS believes that the business and financial risk profile of the above-noted issuer would not be changed by completion of the proposed transaction between KMI and Terasen. Consequently DBRS is confirming its rating as noted above.