A LETTER FROM THE PRESIDENT & CHIEF EXECUTIVE OFFICER ENBRIDGE 2000 ANNU AL REPORT 2 Effective January 1, 2001, Brian MacNeill retired from Enbridge after serving 10 years as President & Chief Executive Officer. During his tenure, Brian transformed Enbridge from a liquids pipeline company into what is now a major diversified energy transportation, distribution and services business. Brian was also clearly focused on ensuring that Enbridge generated superior returns, and the numbers speak for themselves. Since 1991, compound total return to shareholders has been 19.6% per annum. At the same time, the Company’s commitment to environmental stewardship and community investment and involvement grew considerably. There is little doubt that Brian will  be missed. However, the Enbridge management team  is committed to continuing and building on his legacy. Running the business of Enbridge requires a team approach. The Corporate Leadership Team remains intact and is made up of a solid group of senior executives who provide Enbridge with the experience, knowledge and leadership we will need in the new millennium. Succession management is a critical and ongoing process at Enbridge, and is strongly supported by your Board of Directors. Succession management has positioned the Company for continued growth and helped create a seamless transition  to new leadership at Enbridge. We recognize that maintaining our competitive advantage requires an ongoing commitment to developing our intellectual capital, and to replenishing our leadership pool through attraction, development and retention of good people. Enbridge has developed and implemented processes for  Succession Management, Leadership Assessment, Developmental Job Rotations, Exposure to the Strategic Agenda, Enbridge Specific Leadership Development Programs and the use of  Executive Secondly, we will develop our core businesses — liquids pipelines, gas distribution and gas pipelines. We will do this through expansion and geographic extension, using greenfield development, acquisitions or joint ventures. Examples of this  First, we will enhance profitability through adoption and maintenance of incentive-based rate mechanisms, and manage for operational excellence. The negotiation of a new Enbridge Pipelines Incentive Tolling Settlement for 2000 to 2004, and  the adoption of Performance-Based Regulation for Enbridge Consumers Gas support this thrust. So do many efficiency initiatives across the Company. We will be relentless with these initiatives — they are never over! What is our course? Our strategies for growth are built upon integration along the energy value chain. They can be summarized in the following four key strategic thrusts. But some things won’t change. Enbridge will continue to focus on adding economic value and ensuring that we maintain a relatively low-risk business profile. We won’t grow just for the sake of growth, and we will concentrate on the core and complementary businesses that we know best. The strategic planning process and our current five-year plan  will remain in place, as will the basic direction we have today. Although the direction is sound, course corrections will be implemented as necessary to respond to the rapidly changing environment we work in. At Enbridge, we believe that strategic planning is one of the most critical processes in helping us to manage for the future. We devote considerable time to it and we receive a significant amount of input from the Board of Directors. Coaches to identify and address any gaps between present  and future leadership requirements. Enbridge is committed to being an employer of choice, and in June 2000, the Company was included in the national listing of “Canada’s Top 100 Employers.” Our Strategies for Continued Profitable Growth January Construction began on the  Vector Pipeline . Enbridge has a 45% interest in the natural gas pipeline that connects the Chicago hub with the hub in Dawn, Ontario, to serve key markets in Ontario, Quebec, and the Midwest  and Northeast regions of the United States. Vector connects at Chicago with the  Alliance Pipeline , in which Enbridge has a 21.4% interest, and with Northern Border and other pipeline systems.