Part 1 of 2 - IPL Energy Announces Higher Nine Month Earnings.

CALGARY, ALBERTA--(BUSINESS WIRE)--Nov. 7, 1997--IPL(TSE:IPL.) (ME:IPL.) (NASDAQ:IPPIF) (November 7, 1997) - IPL Energy Inc. today announced earnings of $222.5 million, or $3.28 per common share, for the nine months ended September 30, 1997, compared with $183.8 million, or $3.00 per common share, in the first nine months of last year.

FINANCIAL

Consistent with its growth and business opportunities, the company modified its reporting of operating segments effective with the September 30, 1997 results. By reporting results according to Energy Transportation, Energy Distribution and Corporate business units, the new presentation reflects the allocation of assets and management structure of the company. Both of the company's operating segments, Energy Transportation and Energy Distribution, contributed to the strong nine month results.

The Energy Transportation business unit, which, in addition to crude oil pipelines, includes the results of the company's international operations, contributed $91.3 million for the first nine months of 1997 compared with $69.5 million for the same period of 1996. An increase of $14.4 million in earnings from pipeline operations was due largely to the benefit of capacity additions and the impact of the resolution of the Federal Energy Regulatory Commission rate cases in the United States in 1996. The results of this segment also benefited from a $7.4 million higher contribution from international operations reflecting the continued increase in the investment in the Colombia crude oil pipeline.

Earnings from the Energy Distribution business unit, consisting primarily of the operations of The Consumers' Gas Company Ltd., increased $24.6 million to $159.0 million for the first nine months of 1997 compared with the same period of last year. The improvement was largely attributable to the acquisition of the 15 percent minority interest of Consumers Gas in December 1996, continuing growth in the number of customers and cost efficiencies.

Net costs of the Corporate segment to September 30, 1997 amounted to $27.8 million compared with $20.1 million for the first nine months of 1996. The increase was primarily attributable to financing costs associated with the company's growth initiatives including the acquisition of the minority interest in Consumers Gas.

For the three months ended September 30, 1997, consolidated earnings increased to $33.8 million, or $0.49 per common share, from the $23.1 million, or $0.37 per common share, achieved in the third quarter of 1996. Results for the fourth quarter of 1997 will be impacted by the inclusion of the last fiscal quarter of Consumers Gas operations which, due to the seasonable demand for natural gas, is a loss quarter.

The Board of Directors declared a quarterly dividend of $0.545 per common share, payable December 1, 1997, to shareholders of record November 21, 1997.

Reflecting the continuing financial strength of the company, IPL Energy's corporate credit rating was upgraded from A(Low) to A by Canada's two credit rating agencies, Dominion Bond Rating Service and Canadian Bond Rating Service.

On October 20, 1997, IPL Energy filed with Canadian regulatory authorities a shelf prospectus under which it is authorized to issue up to $350 million of unsecured Medium Term Notes. Proceeds will be applied to repay existing debt and to finance capital expenditures and investment to be incurred by IPL Energy.

PROJECT UPDATE

Brian F. MacNeill, President and Chief Executive Officer, said that during the third quarter IPL Energy continued to make progress toward its stated goal of leadership in North American energy delivery and services. Due to the range, number and strategic significance of the Corporation's initiatives, the following provides an update to the information provided during the second quarter on the status of these projects. Energy Transportation

During the quarter, IPL Energy continued to work with significant natural gas energy players to forge strategic partnerships in the development of the least cost transportation pipeline from the Western Canadian sedimentary basin to growing Eastern Canadian and Midwest and Eastern markets in the U.S. Participation in the Millennium Pipeline, together with IPL Energy's interest in the Alliance and Vector pipeline proposals, places IPL Energy in the forefront of three separate but related natural gas pipelines to provide a transportation link from the Western Canadian sedimentary basin, one of North America's largest and most efficient natural gas supply regions, to major Canadian and U.S. markets.

On August 7, 1997, IPL Energy announced it intends to acquire an interest in the proposed Millennium Pipeline through a swap of equity interests. Columbia Gas Transmission Corporation of Fairfax, Virginia, intends to assume an interest in the IPL Energy sponsored Vector Pipeline, and IPL Energy a similar interest in Millennium. The amount of the interest is being finalized. The U.S. $650 million Millennium Pipeline would extend 380 miles from the middle of Lake Erie to a point near New York City. Millennium would be connected to the growing natural gas distribution/storage hub at Dawn, Ontario, by a separate pipeline proposal, thereby providing the pipeline with the ability to transport Western Canadian and U.S. midwest natural gas received at Dawn to New York and other eastern U.S. markets.

The proposed U.S.$546 million Vector Pipeline would extend 344 miles from Chicago to Dawn. At Chicago, Vector will connect with the proposed Alliance Pipeline, and other natural gas transmission systems, all providing a transportation link for Western Canadian supplies. On September 30, 1997, Vector Pipeline successfully concluded its "Open Season" with precedent agreements tendered by shippers for capacity in excess of the target of one billion cubic feet per day. An application to the Federal Energy Regulatory Commission for the U.S. facilities is expected to be filed by December 1, 1997, with a subsequent companion filing with the National Energy Board for the Canadian facilities. The line is projected to be in service in November of 1999. In addition to Columbia Gas, two other equity participants joined Vector Pipeline during the quarter. TransCanada PipeLines Limited, Calgary, and MCN Energy Group Inc., Detroit, assumed interests of 35 percent and 17.5 percent, respectively.

The proposed $3.6 billion Alliance Pipeline, in which IPL Energy holds an 11 percent interest, would extend 1,900 miles from Fort St. John, British Columbia, to Chicago. The NEB will commence a public hearing starting November 17, 1997, on Alliance's application to build the Canadian portion of the line. On the U.S. portion of the line, FERC granted preliminary approval on July 30, 1997, subject to environmental review.

On October 27, 1997, the Joint Public Review Panel announced that both the Sable Offshore Energy Project and the Maritime and Northeast Pipeline Project may proceed subject to certain conditions. The Joint Public Review Panel was established on behalf of federal and provincial regulatory agencies to conduct a joint public review of the Sable Island Gas Projects. The Maritime and Northeast Pipeline Project is a competing proposal to the TransMaritime Gas Transmission Ltd. proposal in which IPL Energy holds a one-third interest. On August 29, 1997, TransMaritime filed an application with the National Energy Board for its $629 million proposal. In view of the Joint Public Review Panel's decision, IPL Energy and its partners, Gaz Metropolitain and TransCanada PipeLines, are evaluating their position.

In a separate project, IPL Energy and Nova Scotia Power Inc. announced, on March 27, 1997, that they will team up to seek natural gas distribution rights for Sable Island gas in Nova Scotia. Work continues to proceed satisfactorily on this project.

On August 15, 1997, Wild Rose Pipe Line Inc., a wholly-owned subsidiary, filed an amended application with the Alberta Energy Utilities Board, thereby assuming ownership of Suncor's originally proposed Athabasca liquids pipeline project. The AEUB will re-notify all stakeholders of changes involved in the application, including increasing the diameter of the line to 30 inches. On July 7, the company and Suncor Energy Inc. announced the combination of their separate pipeline proposals to serve the Athabasca oil sands region of Alberta into a single project totaling $375 million. The arrangement creates the foundation for a significant new pipeline system to accommodate the anticipated growth in heavy oil production. The combined Wild Rose Pipe Line project, to be constructed and owned by IPL Energy, will have capacity in excess of 500,000 barrels per day, sufficient to meet Suncor's full requirements and the needs of other Athabasca and Cold Lake producers.

Discussions with shippers continue on the Terrace Expansion Program to increase Western Canadian crude oil pipeline capacity with a view to accelerating the program. An NEB filing is anticipated before the end of this year.

Work is progressing well on the current SEP II program to expand the mainline system by 120,000 barrels per day at a cost of $540 million of which $140 million is being spent in Canada.

The NEB hearing into the reversal of Line 9 extending from Sarnia to Montreal concluded in September. A decision is anticipated late in the fourth quarter of 1997.

On September 2, 1997, IPL submitted its report to the NEB on ways to improve access for transporting natural gas liquids on its mainline pipeline system. The report outlines expenditures of $64.5 million for injection and interface processing in Canada, plus another U.S. $25 million for breakout storage tankage at Superior, Wisconsin. The feasibility of the project will depend on toll design and structure and the report asks the NEB to convene a hearing on the appropriateness of a rolled-in or stand-alone toll.

Final agreements are expected to be in place during the fourth quarter of 1997 for the construction of a pipeline to connect the U.S. portion of the mainline liquids system at Stockbridge with the BP refinery at Toledo, Ohio.

The previously announced transaction to form the largest independent crude oil and liquids marketer in Canada is expected to close in the fourth quarter of 1997. Headquartered in Calgary, Tidal Energy Marketing Inc., an equally-owned venture with Gulf Canada Resources Limited, combines Gulf's expertise as a wholesale marketer of liquids with IPL Energy's knowledge of transportation and storage systems. Initially, the venture will market in excess of 250,000 barrels per day and be ideally positioned to offer producers unique marketing services for competitive advantage in North America markets.

Construction is nearing completion on the $2.2 billion crude oil pipeline project in Colombia. A 17.5 percent equity interest is held in the pipeline and IPL Energy is the joint operator. Throughput is forecast at 320,000 barrels per day, climbing to 500,000 barrels in early 1998.

CONTACT: IPL Energy Inc.

Frank Ternan, 403/231-3906 or

403/686-3268 (Residence)

403/231-4848 (FAX)

[e-mail]

http://www.iplenergy.com