The Company also provides gas distribution services in New Brunswick through its 63% ownership of Enbridge Gas New Brunswick and in Quebec through a 32% investment in Noverco. Noverco has a 77% interest in Gaz Métropolitain and Company, Limited Partnership which is the major gas distributor in Quebec. Results for Enbridge Consumers Gas for 2000 reflect very strong operating performance as the negative effect on earnings from the transfer (unbundling) of the retail products and services operations to Energy Services on October 1, 1999 has been completely offset. The 1999 results include the results of the unbundled services. Increases to earnings include a higher approved return on common equity, the favourable impact of strong economic conditions in Ontario, slightly colder weather than in 1999 and cost savings initiatives. The effect of weather is measured by degree day deficiency and is calculated by accumulating, from October 1, the total number of degrees each day by which the daily mean temperature falls below 18 degrees Celsius. The weather was 109 degree days colder in 2000 than 1999, but 360 degree days, or 9.2%, below forecast degree days based on normal weather. On a weather-normalized basis, 2000 earnings would increase by $22.1 million. Enbridge Consumers Gas earnings for 1999 were consistent with 1998 as both years reflected warmer than normal weather with similar sendout volumes. In terms of degree day deficiency, the weather was 108 degree days colder in 1999 than 1998, but 600 degree days, or 14.8% warmer than forecast based on normal weather. On a weather-normalized basis, earnings would increase by $31.3 million (1998 — $39.8 million). Effective for three years starting in fiscal 2000, Enbridge Consumers Gas is regulated under a Performance-Based Regulation plan (PBR plan). The PBR plan uses a formula to calculate the level of operation and maintenance costs recoverable in rates. The PBR plan recognizes customer growth, inflation and events beyond the control of management, while guaranteeing ratepayers an annual productivity credit of 1.1%. In return, Enbridge Consumers Gas is allowed to retain the savings during the PBR plan period if it achieves lower operation and maintenance costs than those calculated using the formula. Enbridge Consumers Gas ENBRIDGE 2000 ANNU AL REPORT 21 97 11.5 98 10.3 99 9.51 00 01 9.73 1 9.73 1 Subject to regulatory approval 1 Subject to regulatory approval 97 2,831 98 3,059 99 3,283 00 01 3,083 1 2,806 97 4,011 98 4,079 99 4,060 00 3,929 Forecast Actual 4,003 3,352 3,460 3,569 Enbridge Consumers Gas Return on Common Equity  (%) Enbridge Consumers Gas Rate Base (millions of dollars) Enbridge Consumers Gas Degree Day Deficiency (degrees Celsius)