ENBRIDGE 2000 ANNU AL REPORT 7 ANSWERS TO SOME FREQUENTLY ASKED QUESTIONS When used in this annual report, the words “anticipate”, “expect”, “project”, “believe”, “estimate”, “forecast” and similar expressions are intended to identify forward looking statements, which include statements relating to pending and proposed projects. Such statements are subject to certain risks, uncertainties and assumptions pertaining to operating performance, regulatory parameters, weather and economic conditions and, in the case of pending and proposed projects, risks relating to design and construction, regulatory processes, obtaining financing and performance of other parties, including partners, contractors and suppliers. We are confident that we can continue to generate superior returns to shareholders. This is based on visible earnings growth embedded within the existing businesses, as well as new opportunities. For Energy Transportation, we see potential to further increase efficiency and for higher utilization rates on the main liquids pipeline system, and increased contributions from the Athabasca pipeline and tank terminal. Our new gas transmission business also provides opportunities for expansion and new project development. For the Energy Distribution and Energy Services businesses, increased earnings are expected from continuation of customer additions in both Ontario and New Brunswick, savings resulting from Performance-Based Regulation and higher contributions from existing and new retail energy products and services. We believe that opportunities exist for continued expansion of our core businesses, as demonstrated in the past, as well as for small-to-medium scale acquisitions, joint ventures and investments. We also will continue to assess other opportunities including larger-scale transactions. However, we will continue to take a disciplined approach to acquisitions and mergers: the synergies and strategic benefits must be demonstrated to our satisfaction and the expected returns must be acceptable to shareholders. Enbridge’s mainline pipeline system volumes increased during the last quarter of 2000, and we expect supply to continue to grow in 2001. With the number of new oil sands and heavy oil projects under construction and scheduled to come on stream in the next two to three years, as well as planned projects, we believe that the future for crude oil and liquids is positive, and we continue to plan with our customers for further system expansion. We see continued growth in our franchise area, and believe that gas will continue to be the fuel of choice in key North American markets. Although sustained high natural gas prices could have a negative impact on gas demand, the long-term fundamentals are strong. Natural gas is the cleanest burning and most environmentally friendly fuel. Enbridge intends to be part of any northern gas development. Given our existing presence in the North, our experience as operators of the only buried pipeline in the North that operates in discontinuous permafrost, and our reputation with shippers, we think we are well positioned. We continue to work aggressively on several fronts. Route selection will be determined by the producers who own the gas reserves, and our efforts are focused on assisting producers, aboriginal peoples and various governments and regulatory agencies with their decision processes. The alliance represents a first step in positioning Enbridge in the development of emerging energy technologies. Fuel cell technology is rapidly evolving to the point where it might soon provide a clean, economical alternative to large power plants in meeting homeowners’ needs for reliable electric power. Natural gas required to supply residential fuel cells would benefit our gas distribution and transmission businesses, and provide growth for our retail energy services business in sales, installation and servicing of residential and commercial units. Can Enbridge maintain its pattern of historical growth? The energy industry continues to undergo significant consolidation. Does Enbridge plan to make a large corporate acquisition? Oil volume increases didn’t materialize as expected in 2000. Why, and what does this mean to the future of your mainline pipeline system? Do high natural gas prices reduce prospects for growth in your gas distribution franchise areas? Will Enbridge have a role in the development of northern  gas reserves? Why did Enbridge invest  in a fuel cell company?