Economic Assumptions ENBRIDGE 2000 ANNU AL REPORT 48 The most significant economic assumptions made in the measurement of the pension costs and the projected benefit obligations of the pension plans and OPEB were as follows: A 1% change in the assumed medical and dental care trend rate would result in a $17.4 million change in the accumulated post-employment benefit obligations and a $2.0 million change in post-employment benefit costs. 12. Investment and Other Income 13. Changes in Operating Assets and Liabilities The reduction in federal and provincial income tax rates has resulted in certain of the Company’s anticipated U.S. dollar cash flows being overhedged. The derivative financial instruments related to the overhedged position, primarily long-term forward foreign exchange contracts, have been treated as speculative and marked to market, resulting in a charge of $24.5 million to earnings. Changes in accounts payable exclude changes in construction payables which relate to investing activities. (millions of dollars) December 31, 2000 1999 1998 Accounts receivable and other (69.0) (67.2) (174.7) Gas in storage (144.7) (17.3) (47.9) Deferred charges and other (69.2) (38.6) (9.4) Accounts payable and other (68.2) 9.7 (14.3) Interest payable 23.2 (1.8) 17.0 Current portion of long-term liabilities (23.4) 54.1 — Deferred credits (45.1) (70.7) 51.3 (396.4) (131.8) (178.0) (millions of dollars) December 31, 2000 1999 1998 Equity investments 99.4 72.8 47.5 Cost investments 44.4 40.5 42.2 Short-term investments 14.7 13.5 4.5 Allowance for equity funds used during construction 2.7 9.9 18.1 Loss on foreign currency contracts (24.5) — — Gain on reduction of ownership interest — 18.2 1.0 Settlement of outstanding insurance claim — — 16.0 Other 48.9 27.5 22.4 185.6 182.4 151.7 OPEB Pension Benefits Year ended December 31, 2000 1999 1998 2000 1999 1998 Discount rate 7.0-7.5% 6.5-7.5% 6.3-8.5% 7.0-7.5% 6.3-7.5% 6.3-8.5% Average rate of salary increases 4.0% 4.0-4.5% 4.5-5.5% Average rate of return on pension plan assets 7.75-8.0% 7.5-8.0% 7.5-8.5% Medical cost trend rate 4.5-6.8% 4.5-6.8% 4.5-7.0% Dental cost trend rate 4.5-6.0% 4.5-6.0% 4.5-6.0%