Energy Transportation — Natural Gas: Enbridge’s natural gas transmission strategy became a reality with the completion of construction of both the Alliance and Vector pipelines, and  the start of commercial service in December. With a 21.4% interest in Alliance, and as lead operator with a 45% interest  in Vector, Enbridge has become a major player in the gas transmission business. Energy Distribution: Enbridge Consumers Gas, Canada’s largest natural gas distribution franchise, continued to add customers at  a rate of over 50,000 per year, and customers and shareholders benefited from the first year of operations under Performance- Based Regulation. This model of sharing cost savings with our Ontario customers is consistent with Enbridge’s approach taken in the liquids transportation business. In New Brunswick, Enbridge Gas New Brunswick, which is 63% owned by Enbridge, began construction of a new natural gas distribution network for the province. Energy Services: Enbridge Services, the Company’s unregulated retail energy services business that provides heating, ventilation, air conditioning and other products and services, completed  its first full year of operations following the October 1999 unbundling of Enbridge Consumers Gas. Enbridge continues to take a measured approach to developing this business, but the Company is encouraged that the first year was a profitable one. Enbridge also launched a shared services business unit in 2000, to provide information technology, billing and fleet management services to Enbridge businesses in Central and Atlantic Canada, and potentially to third-party customers. The shared services business is designed as a model to maximize use of corporate resources and leverage cost efficiencies and intellectual capital across business units. International: Enbridge increased its interest in the OCENSA crude oil pipeline from 17.5% to 24.7%, and became sole operator of the system, which transports more than half of the total crude oil production in Colombia. The Company and its partners also reached a long-term agreement to operate the  Jose crude oil storage and marine terminal in Venezuela. Other: In July, Enbridge announced a strategic alliance for development of fuel cells for residential use. The fuel cells, which  are scheduled for field testing beginning in 2001, are natural  gas-fuelled, and Enbridge will have exclusive distribution rights  in Canada. In anticipation of tightening supply and rising prices, Enbridge acquired long-term rights to 60 megawatts of power generation capacity at favourable rates: 40 megawatts will be used by Enbridge Pipelines to meet base load requirements; the balance will be sold to third parties. Enbridge also continued to work with producers in Canada and the United States to position itself as a valuable partner in any future gas pipeline development from the Alaskan North Slope and Mackenzie Delta. There were many accomplishments in 2000, but there were also some disappointments. Although we were initially disappointed when the government of Venezuela decided that the Jose Terminal assets were no longer for sale, we were able to continue negotiations and reach an agreement for a 10-year contract to operate the facility. Second, delays and uncertainties with deregulation of electrical power distribution in Ontario have postponed our strategy for investment in Municipal Electric Utilities, but we continue to seek partnerships with some of the larger MEUs in our gas distribution franchise area. Finally, Enbridge Services closed down its handful of retail stores in British Columbia, while continuing to offer heating, ventilation and air conditioning services there. The Company will concentrate on the much larger and well-established business  in Ontario, where the Enbridge brand is already well-known  and respected. Despite these few disappointments, 2000 was clearly another year of significant achievement. Enbridge’s financial position is strong, the fundamentals of the business remain excellent and  the Company’s outlook for growth continues to be positive. Enbridge continues to pursue opportunities for growth, building  on core competencies and adding complementary businesses  Enbridge completed the purchase of an additional equity interest in the  OCENSA crude oil pipeline in Colombia. OCENSA  transports about 60% of all crude oil produced in Colombia, and Enbridge now holds a 24.7% equity interest and is sole operator of the system. Enbridge was awarded the transportation and handling services contract for Petro- Canada’s new oil sands operation being constructed in northern Alberta for start-up in late 2002. Enbridge will transport up to 30,000 barrels per day of heated bitumen from MacKay River to its  Athabasca Terminal , where it will be blended with diluent. Up to 60,000 barrels per day of blended product will then be transported  to Hardisty, Alberta, on the  Enbridge Athabasca System . September Looking Ahead ENBRIDGE 2000 ANNU AL REPORT 5