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NOVA REACTS TO ALBERTA PUBLIC UTILITIES BOARD DECISION

       NOVA REACTS TO ALBERTA PUBLIC UTILITIES BOARD DECISION
    CALGARY, Alberta, Oct. 27 /PRNewswire/ -- NOVA Corporation of Alberta (NYSE: NVA; Toronto, Montreal, Calgary: NVA) announced today that it is satisfied with the ruling of the Alberta Public Utilities Board (PUB) which set the rate of return and capital structure for NOVA's Alberta Gas Transmission Division (AGTD).  The PUB set AGTD's total rate of return at 10.95 percent, including a 12.5 percent return on a deemed common equity component of 32 percent.  In public hearings before the PUB this summer, NOVA had presented evidence supporting a 13.5 percent return on a deemed common equity component of 35 percent.  A common equity component of 32 percent had formed a part of AGTD's deemed capital structure from 1978 to 1991.
    "We view the board's decision as a balancing of interests," said Bruce Simpson, president of NOVA's gas transmission division.
    "We were confident the evidence presented to the PUB supported our original request," added Simpson.  "However, we believe the rates set by the PUB are within a range that will allow us to carry on our customer-driven expansion programs in this economic environment."
    Simpson said the lower rates set by the PUB will not have a material impact on NOVA's financial position.  The rates are not expected to limit NOVA's ability to raise new debt to fund continuing pipeline expansion.
    NOVA sets its own rate of return after consultation with its customers.  If challenged by customers, this rate is subject to a ruling by Alberta regulatory agencies.  This year's public hearing marks only the second time in the last 14 years that an agreement could not be reached, and a formal complaint was lodged.
    The company expects that this decision will provide the basis for agreement on future rate of return adjustments.
    -0-                     10/27/92
    /CONTACT:  B.W. (Bruce) Simpson, 403-290-7644, or S.H. (Sheila) O'Brien, 403-290-7503, both of NOVA/
    (NVA) CO:  NOVA Corporation of Alberta ST:  Alberta IN:  OIL SU: JL -- LA033 -- 5721 10/27/92 20:14 EST
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Publication:PR Newswire
Date:Oct 27, 1992
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