ENBRIDGE 2000 ANNU AL REPORT 30 CONSOLIDATED STATEMENT OF EARNINGS CONSOLIDATED STATEMENT OF RETAINED EARNINGS The accompanying notes to the consolidated financial statements are an integral part of these statements. The accompanying notes to the consolidated financial statements are an integral part of these statements. Year ended December 31, 2000 1999 1998 Revenues Gas sales 1,414.7 1,374.2 1,416.1 Transportation 1,032.1 820.3 624.8 Energy services 498.2 499.5 305.5 2,945.0 2,694.0 2,346.4 Expenses Gas costs 966.5 903.1 865.0 Operating and administrative 870.3 821.6 675.0 Depreciation 453.5 383.8 309.0 2,290.3 2,108.5 1,849.0 Operating Income 654.7 585.5 497.4 Investment and Other Income (Note 12) 185.6 182.4 151.7 Interest Expense (Note 5) (427.7) (380.6) (312.9) Earnings Before Undernoted 412.6 387.3 336.2 Income Taxes (Note 10) 1.9 (87.5) (95.3) Earnings 414.5 299.8 240.9 Preferred Security Distributions (Note 6) (15.3) (5.0) — Preferred Share Dividends (Note 7) (6.9) (6.9) — Earnings Applicable to Common Shareholders 392.3 287.9 240.9 Earnings Per Common Share (Note 7) 2.54 1.91 1.66 ((millions of dollars, except per share amounts) (millions of dollars, except per share amounts) Year ended December 31, 2000 1999 1998 Retained Earnings at Beginning of Year 503.1 407.6 336.7 Earnings Applicable to Common Shareholders 392.3 287.9 240.9 Effect of Change in Accounting for Income Taxes (Note 10) (112.0) — — Preferred Share and Preferred Security Issue Costs — (6.0) (1.7) Common Share Dividends (202.1) (186.4) (168.3) Retained Earnings at End of Year 581.3 503.1 407.6 Dividends Paid Per Common Share 1.27 1.195 1.120