MANAGEMENT’S DISCUSSION AND ANALYSIS ENBRIDGE 2000 ANNU AL REPORT 14 OVERVIEW 1 Represents average ROE for five year period ◗ Return on average common shareholders’ equity improved  to 18.6% in 2000, well above average regulated rates of return in Canada. ◗ Earnings applicable to common shareholders increased by $104 million, or 36%, over 1999 resulting in a compound earnings growth rate of 21.5% per annum over the last four years. This improvement was achieved despite the record warm winters experienced in the Company’s gas distribution franchise areas over the past three years which adversely affected earnings by $22 million in 2000, $31 million in 1999 and $40 million in 1998. ◗ Despite the decrease in throughput levels on the mainline pipeline during 1998, 1999 and much of 2000, the liquids pipeline systems have recorded a 2.4% compound annual growth rate in throughput over the last four years. ◗ Total assets have grown by an average of 16.3% annually  over the past four years while still maintaining a strong return on common equity. ◗ Since the beginning of 1996, Enbridge has invested  $5.6 billion in additions to property, plant and equipment, long-term investments and acquisitions of subsidiaries and joint ventures. These investments have been facilitated by continued access to capital markets. Over the last five years, Enbridge has raised $4.5 billion through debt and equity offerings in Canada and the United States. ◗ The gas distribution utility customer base in Ontario has maintained a growth rate of 3.8% per annum since 1995. ◗ The Company has achieved its annual double-digit growth  in earnings per common share objective since 1995. ◗ While increasing its quarterly dividend payments for the  fifth consecutive year in 2000, the Company has reduced  its dividend payout ratio to 50% from 87% in 1995, in  line with its objectives. Compound Annual 2000 1999 1998 1997 1996 Growth Return on Average Common Shareholders’ Equity 18.6% 14.3% 13.8% 14.2% 15.0% 15.2% 1 Earnings Applicable to Common Shareholders (millions of dollars) 392.3 287.9 240.9 217.3 180.3 21.5% Earnings per Common Share (dollars per share) 2.54 1.91 1.66 1.58 1.45 15.0% Dividends per Common Share (dollars per share) 1.270 1.195 1.120 1.060 1.015 5.6% Total Assets (billions of dollars) 10.6 9.2 8.3 6.7 5.8 16.3% Active Customers at Gas Utility (thousands) 1,520 1,466 1,414 1,362 1,307 3.8% Liquids Deliveries (thousands of barrels per day) 2,164 2,023 2,136 2,083 1,970 2.4%