ENBRIDGE 2000 ANNU AL REPORT 15 Earnings applicable to common shareholders for the year ended December 31, 2000 were $392.3 million, or $2.54 per common share, compared with $287.9 million, or $1.91 per common share, in 1999. The 36% increase in earnings primarily reflects the effects of reductions in income tax rates, solid operating performance of the Energy Distribution and Energy Services businesses, and higher contributions from gas transmission pipelines. These improvements were partially offset by higher financing costs and a one-time charge of $8.7 million related  to Enbridge’s merchant capacity on the Alliance and Vector Pipelines. In both 2000 and 1999, warmer than normal weather negatively affected Energy Distribution’s results by $22.1 million and $31.3 million, respectively. The 1999 contribution for Energy Services includes a fifth quarter due to the timing of the unbundling of the retail products and services from Enbridge Consumers Gas. A gain recognized in 1999 related to the reduction in the Company’s ownership interest in the Lakehead System did not recur in 2000. The Federal and Ontario income tax rate reductions reduce  the value of income tax assets and liabilities and the change  is included in earnings in the year that the rate reduction is substantially enacted. Foreign exchange losses also resulted from the tax rate reductions as the Company had hedged U.S. dollar after-tax future cash flows based on previously enacted tax rates. The $47.0 million improvement in 1999 earnings from 1998 was principally the result of the expansion of the liquids pipeline systems, completion of the Enbridge Athabasca System, increased investments in gas transmission pipelines and fees earned from operating the Jose Terminal in Venezuela. These improvements were partially offset by higher financing costs  to support growth initiatives and the absence of an insurance settlement recorded in 1998. Common share dividends paid over the last three years reflect both increases in the dividend rate and the number of common shares outstanding. As a result of sustained growth in earnings, quarterly dividends increased to $0.2875 per share in the third quarter of 1998, to $0.3025 per share in the second quarter of 1999 and to $0.3225 per share in the second quarter of 2000, representing increases of 5.5%, 5.2% and 6.6%, respectively. CONSOLIDATED Financial Highlights (millions of dollars;  except per share amounts) 2000 1999 1998 Earnings Applicable to Common Shareholders Energy Transportation 203.8 211.6 153.3 Energy Distribution 190.9 99.5 100.3 Energy Services 63.9 (4.3) (6.8) International 26.4 28.7 24.3 Corporate (92.7) (47.6) (30.2) 392.3 287.9 240.9 Per Share Amounts Earnings 2.54 1.91 1.66 Dividends 1.270 1.195 1.120 Cash Provided from  Operating Activities 264.0 495.1 312.4 Common Share Dividends 202.1 186.4 168.3 96 15.0 97 14.2 98 13.8 99 14.3 00 18.6 Return on Average Common Shareholders’ Equity  (%) 96 180.3 97 217.3 98 240.9 99 287.9 00 392.3 Earnings Applicable to Common Shareholders (millions of dollars)