2004 Third Quarter Results Conference Call August 4, 2004 4:00 PM (ET)

I. 2004 Third Quarter Highlights II. Normalized Volumes Table of Contents I. 2004 Third Quarter Highlights II. Normalized Volumes III. Segmented Data IV. 2004 Third Quarter Results V. Competitive Situation VI. Evolution of Gas Prices VII. Conclusion

2004 Third Quarter Highlights Normalized volumes of 1,128 106m3, up 43 106m3 or 4.0% (or 39.8 Bcf, up 1.5 Bcf) Higher deliveries in industrial and residential sectors Partners’ income of $9.4M, up $0.3M or 3.9% compared to the same quarter last year Decrease in Distribution Sector Recognition of over-earnings of $6.0M compared to $1.5M for the same quarter last year Increases in Transportation and Energy Services and Others Sectors Partners’ income per unit of $0.08, same as last year Additional 4.0M units outstanding (or 3.6%) compared to previous year Negative impact of stronger Canadian dollar Expenses related to Rabaska project of $1.5M during the quarter Cash flows from operations (before non-cash working capital items) of $41.2M, down $3.1M or 7.0%

Normalized Volumes Note: Differences are due to rounding Conversion factor: 1 billion cubic feet = 28.328 million cubic metres

Normalized Volumes Note: Differences are due to rounding Conversion factor: 1 billion cubic feet = 28.328 million cubic metres

Segmented Data (Partners’ income in thousands of $)

Segmented Data (Partners’ income in thousands of $)

Financial Results (in millions of $, except per unit data in $) 1 Excluding change in non-cash working capital items 2 Excluding deferred charges related to gas cost of +$0.6M and +$17.2M for 2004 and 2003 respectively, but including commercial programs and information systems development. Note: Differences are due to rounding

Financial Results (in millions of $, except per unit data in $) 1 Excluding change in non-cash working capital items 2 Excluding deferred charges related to gas cost of + $12.2M and + $80.9 M for 2004 and 2003 respectively, but including commercial programs and information system development. Note: Differences are due to rounding

Competitive Situation How competitive is natural gas in Quebec? Market Main Competitor How competitive* Industrial #6 Fuel oil More expensive, but more flexible and less polluting Commercial & Electricity 13% cheaper Institutional Residential Electricity 8% to 19% more expensive * As at June 30, 2004. Based on historical prices for past 12 months.

Evolution of Gas Prices As of July 20, 2004 Sources: Enerdata, CIBC and Gaz Métro

Conclusion Distribution of $0.34 per unit to be paid on October 1, 2004 Increase of 4.0% in normalized deliveries during third quarter of 2004 Increase in net earnings of 3.9% during the period After nine months, net earnings per unit are up $0.01 to $1.64 2005 rate case for Québec Distribution (subject to Régie de l’énergie’s approval) Base rate of return: 9.56% Incentive Return (anticipated productivity gains): 2.05% Request to renew ROE formula for next three years (2005 to 2008)