Last updated on April 19, 2014 at 13:20 EDT

Gaz Metro completes acquisition of Central Vermont Public Service Corporation

June 27, 2012

Another step toward prudent and targeted diversification in the
electricity sector

MONTREAL, June 27, 2012 /CNW Telbec/ – Gaz Métro inc. (“GMi”), is
pleased to announce that Gaz Métro Limited Partnership (“Gaz Métro”),
through its wholly owned subsidiary, Northern New England Energy
Corporation (“NNEEC”), has today completed the acquisition of Central
Vermont Public Service Corporation (“CVPS”), the largest electricity
distributor in Vermont.

It is expected that CVPS will consolidate in the coming months its
operations with those of Green Mountain Power Corporation (“Green
Mountain Power”), the second-largest electricity distributor in the
State, acquired by Gaz Métro in 2007.

“The acquisition of CVPS and its consolidation with Green Mountain Power
is built around a high quality management team in Vermont. Bringing
these two distributors together will release considerable synergies for
the benefit of our customers in Vermont and our shareholders,” said
Sophie Brochu, President and Chief Executive Officer of Gaz Métro.

“This transaction marks an important milestone in the rigorous execution
of our strategy of prudent and targeted diversification in the
electricity industry. This same strategy has also led us to invest in
the implementation of the 341 MW Seigneurie de Beaupré wind power
projects, in Québec, and to support Green Mountain Power in the
development of a 63 MW wind farm in northern Vermont,” added Ms.

CVPS and Green Mountain Power will together serve more than 250,000
customers in Vermont and will enable their customers to benefit from
savings totalling US$144 million over the next ten years. As well as
these economic advantages, Vermonters will also benefit from increased
reliability and more efficient service.

Gaz Métro has operated in Vermont for 25 years as the owner of Vermont
Gas Systems, Inc., the only gas distributor in the State. In its
favourable decision, rendered June 15 last, the U.S. regulator
emphasized that Gaz Métro’s history as a good corporate citizen in
Vermont was an important factor in its decision to authorize the
acquisition of CVPS.

“Gaz Métro is proud of the confidence placed in it by Vermont, a State
known for being proactive in environmental matters, and where Gaz
Métro’s operating philosophy is reflected in the sustainable
development values that are so firmly rooted there,” added Ms. Brochu.

Gaz Métro and GMi in brief

With the acquisition of CVPS, the value of Gaz Métro’s assets is now
close to $5 billion. Gaz Métro is a major energy distributor. It owns
the only gas distributor in Vermont and is the major natural gas
distribution company in Québec, where its more than 10,000-km
underground distribution network serves some 300 municipalities. Gaz
Métro is also involved in the electricity distribution market, in the
transportation and storage of natural gas, as well as in the
development of innovative energy projects such as wind power, natural
gas as a fuel for the transportation industry and biomethanation.

Gaz Métro is dedicated to satisfying its 180,000 Quebec and 295,000
Vermont customers it serves, as well as its Partners: Valener Inc.,
held by the investing public; and GMi, held by Noverco Inc.
(“Noverco”). Listed on the stock exchange, Valener Inc. (“Valener”)
(TSX: VNR) holds an interest of approximately 29% in Gaz Métro, thus
allowing the public to invest and participate significantly in the
growth of the latter’s activities. For its part, GMi principally holds
an economic interest of about 71% in Gaz Métro, for which it acts as a
general partner and as a financing vehicle. Noverco, whose principal
shareholder is indirectly the Caisse de dépôt et placement du Québec,
is an important contributor to the growth of Gaz Métro. www.gazmetro.com

CVPS in brief

CVPS, the largest electricity distribution company in Vermont, serves
some 160,000 customers in 163 towns and municipalities. It has been
awarded the national Emergency Recovery Award from the Edison Electric
Institute on four occasions, and has been ranked among the most
reliable U.S. companies by Forbes magazine for more than five years.

Green Mountain Power in brief

Green Mountain Power produces, transmits, distributes and sells
electricity in Vermont and is a leader in the production of wind and
solar energy. It serves more than 95,000 customers. www.greenmountainpower.com

Cautionary note regarding forward-looking statements

Certain statements contained in this press release may be
forward-looking pursuant to applicable securities laws. Such
forward-looking statements reflect the intentions, plans, expectations
and opinions of the management (the “Management”) of GMi, and are based
on information currently available to the Management and assumptions
about future events. Such forward looking statements include statements
relating to the merger of CVPS with Green Mountain Power and the
expansion and growth of CVPS and Green Mountain Power’s operations and
potential synergies resulting from the merger. Forward-looking
statements involve known and unknown risks and uncertainties and other
factors beyond the control of the Management. A number of factors could
cause actual results of GMi and Gaz Métro to differ significantly from
the current expectations as expressed in the forward-looking
statements, including, but not limited to the terms of the decisions rendered by regulatory agencies, the general
economic conditions, the competitiveness of natural gas in relation to
other energy sources, the reliability of natural gas supplies, the
integrity of the natural gas distribution system, the exchange rates
fluctuations, the evolution of development projects, the capability to
materialize attractive acquisitions, as well as obtaining related
financing and effecting integration, the capability to obtain future
financing and other factors described in the Annual Information Form of
GMi for the year ended September 30, 2011 under the item “Risk

Although these forward-looking statements are based upon what the
Management believes to be reasonable assumptions, the Management cannot
assure investors that actual results will be consistent with these
forward-looking statements. These forward-looking statements are made
as of the date of this press release, and the Management assumes no
obligation to update or revise them to reflect new events or
circumstances, except as required pursuant to applicable securities
laws. You are cautioned not to place undue reliance on these
forward-looking statements.

The complete version of the cautionary note regarding forward-looking
statements is included in the Management Discussion & Analysis of GMi
dated May 11, 2012. This document is available on SEDAR at www.sedar.com.


Source: PR Newswire