Finally, we will be emphasizing development and use of new and innovative technologies — for our operations, for our growing Information Technology requirements, and for integration of emerging energy technologies. thrust include the recently announced Phase II of the Terrace pipeline expansion, the development of gas distribution within New Brunswick, and the acquisition of an additional interest in the OCENSA pipeline in Colombia. Future initiatives will include a potential third phase of Terrace, northern and East Coast gas pipeline development, a new state-of-the-art operations centre in Edmonton that consolidates North American pipeline control operations from a dozen centres into a single facility, and increased emphasis on international investment. Thirdly, we will develop and acquire businesses which are complementary to the core businesses. This includes gas storage initiatives; the launch of gas services, gathering and processing investment through AltaGas Services; emerging technology investments, including our recent investment in fuel cell technology; and initiatives with respect to investments in and/or shared services with Ontario Municipal Electric Utilities. Lastly, we will build a base for potential longer-term growth through measured development of unregulated retail energy services. The main component of this initiative is our Ontario- based retail business built around the provision of heating, ventilation and air conditioning products and services. Within the context of these four strategies for growth, there are three additional areas that we need to emphasize. We need to increase our geographic “footprint” within North America. This expanded footprint will allow us to diversify our sources of energy supply and capitalize on opportunities outside our existing operations. We also need to increase our scale. This means increasing the size and scope of our operations so we can manage the risks associated with new technological developments and unregulated businesses. All of us at Enbridge will work on behalf of our shareholders to deliver the kind of superior returns and results shareholders have come to expect. Our goal is to deliver superior earnings growth while maintaining our relatively low risk profile, and we will continue to focus on delivering total returns to shareholders that exceed those of our peers. Enbridge remains firmly on course to build on our core competencies, develop our intellectual capital and maintain  the pattern of profitable growth that has earned the trust of  our shareholders. Our strategic alliance to develop natural gas-fuelled fuel  cell products for residential use is a good example of new technology development. However, it is only one project in  a suite of technology-based initiatives we are pursuing that includes Internet-based crude oil trading, state-of-the-art customer information systems, pipeline control and interactive operator training systems, remote repair technologies for gas mains, and gas-to-liquids technology. Patrick D. Daniel President & Chief Executive Officer February 23, 2001 ENBRIDGE 2000 ANNU AL REPORT 3 Our Focus Will Remain on Adding Value Three Areas of Emphasis April May Enbridge and the Canadian Association of Petroleum Producers finalized details of a new five-year  Incentive Tolling Settlement governing tolls on the Enbridge Pipelines mainline system for the years 2000 to 2004. The fundamentals of the new agreement are consistent with the original five-year agreement that expired at year- end 1999, and provide for continued sharing, by Enbridge and its customers, of savings resulting from cost reductions and productivity gains. The agreement received regulatory approval in June 2000. Enbridge announced plans to provide additional long-term crude oil handling services for oil sands operations near Fort McMurray, Alberta. Enbridge is constructing four new crude oil tanks at its  Athabasca Terminal . When completed and in service in 2001, the tanks will double capacity at the terminal to 1.2 million barrels.