Montreal, July 15, 2005 - Gaz Métro Limited Partnership (TSX: GZM.UN) announces that, following a call for tenders, a consortium composed of Gaz Métropolitain Plus (51%), the Caisse de dépot et placement du Québec (29%) and Confort Expert inc. (20%) has purchased from HydroSolution, a subsidiary of Hydro-Québec Distribution, a stock of electric water heaters leased to some 200,000 customers.

The mission of the joint venture, which will continue to use the HydroSolution name, will be to provide a single complete integrated water heater sales, rental and maintenance service in the residential and multi-unit rental properties markets in the large centres in the large centres in Quebec.

Luc Sicotte, President and Chief Executive Officer of Gaz Métropolitain Plus, a subsidiary of Gaz Métro Limited Partnership, said: "For Gaz Métropolitain Plus, which presently owns a portfolio of natural gas water heaters, this transaction represents an opportunity to expand its activities. The growth potential of the leased water heater market in Québec is attractive due to a market penetration rate lower than in other Canadian provinces."

Pierre Boulé, President and Chief Executive Officer of Confort Expert, said: "The objective of the new company, like the former, will be to provide its customers with attentive service." He added: "Confort Expert specializes in the sale and installation of heating and air conditioning equipment and for the past seven years was a HydroSolution’s partner in the water heater business."

"This investment is in line with the development strategy for medium-sized businesses in Quebec for which the Caisse de dépôt et placement has set up a specific team. It is a long-term investment with excellent growth potential" stated Yves Cusson, Vice President Investment, Mid-Size Businesses of Caisse de dépot et placement du Québec.

Robert Tessier, President and Chief Executive Officer of Gaz Métro, pointed out that "the equipment rental activity generates predictable revenues, a characteristic looked for by Gaz Métro and its unitholders. We are pleased we were able to do this transaction with partners like the Caisse de dépôt et placement and Confort Expert."

A six to nine month transition period has been provided to integrate the new company.During this time, Hydro-Québec and the purchasers will work together to ensure all the customers receive quality services. An official release to this effect will be sent shortly to HydroSolution’s customers.

Confort Expert

Since 1990, Confort Expert has been in the residential heating and air conditioning business. With more than 100 employees and a fleet of 45 trucks, Confort Expert is the reference for comfort for every type of energy. It has extensive expertise in electricity, natural gas and heating oil as well as air conditioning for the residential market.

Caisse de Dépot et Placement du Québec

The Caisse de dépôt et placement du Québec is a financial institution that manages funds primarily for public and private pension and insurance plans. As at December 31, 2004, it held $102.4 billion of net assets. The Caisse invests in the main financial markets as well as in private equity and real estate. The institution partners with dynamic companies in various sectors, offering them a full range of debt and equity financing products. The Caisse partners with dynamic companies in various sectors, offering them a wide range of financing products, mainly equity investments and loans. As at December 31, 2004, the private equity portfolios held more than 600 investments in funds and companies, for $10.2 billion of net assets.

Gaz Métropolitain Plus Group

Through 12 subsidiaries and investment interests, Gaz Métropolitain Plus sells goods and services in unregulated activities that include energy services, municipal water systems and a metropolitan fibre optic network. These activities are complementary to Gaz Métro’s core business.

Gaz Métro

With more than $2 billion of assets and more than 1,500 employees in , Gaz Métro is a leading energy company and one of Canada’s largest natural gas distributors. Gaz Métro serves about 157,000 customers in through an underground pipeline network of almost 10,000 km. A subsidiary, Vermont Gas Systems, serves about 36,000 customers.

Gaz Métro also owns significant investment interests in two natural gas transmission enterprises (TQM and Portland Natural Gas Transmission System) and in an enterprise specializing in underground natural gas storage facilities (Intragaz).

Information:  Stéphanie Trudeau, Senior Advisor, Public and Governmental Affairs, Gaz Métro, 514 598-3656, sttrudeau@gazmetro.com; Lucie Frenière, Senior Director, External Communications, Caisse de dépot et placement du Québec, 514 847-5949; Pierre Boulé, President and Chief Executive Officer, Confort Expert, 514 640-7711 ext. 304, pboule@confortexpert.qc.ca.

Luc Sicotte, President and Chief Executive Officer, Gaz Métropolitain Plus, will be available by telephone upon request.