economic performance

How We Directly Benefit Stakeholders

Enbridge adds value to the economy through our operating expenses and distributions.

* Includes the cost of purchasing commodities, power and other supplies and services.

BENEFITS TO INVESTORS

Our returns to shareholders are delivered through a combination of capital growth and dividends. In 2005, $361 million was paid to common shareholders as dividends, up 14 per cent from the previous year. The graph below shows dividends per share for the last five years.

BENEFITS TO EMPLOYEES

Our business operations provide jobs and contracting opportunities in many communities in Canada, the United States and internationally. Headquartered in Calgary, we have offices in Edmonton, Toronto and Houston, as well as in Spain and Colombia. We have more than 4,600 employees with an annual payroll of about $300 million. In 2005, we paid about $38 million through our annual incentive program to reward employee performance.

BENEFITS TO CUSTOMERS

Every day through our energy transportation and distribution systems in Canada and the United States, we provide millions of customers with hydrocarbon products that are essential to quality of life. These provide fuel for transportation, heat for our homes and the resources to manufacture plastics and a wide range of consumer products.

We also work with customers to increase the efficient use of valuable energy resources. Enbridge Gas Distribution’s demand-side management (DSM) programs help customers conserve gas, saving them money and enabling them to contribute to environmental goals. Over the past decade, the company has helped customers reduce their natural gas consumption by 2.3 billion cubic metres through participation in our DSM programs. (For more information on the DSM program, please see the Demand-Side Management page.)

This translates into the avoidance of 4.3 million tonnes of greenhouse gas (GHG) emissions being released into the atmosphere. Each of these measures moves the company closer to the realization of its emission reduction targets, despite the pressures of significant growth in Enbridge’s customer base.

BENEFITS TO GOVERNMENTS

Our business activity brings other benefits to society. Some of the greatest beneficiaries are local, state, provincial and federal governments in Canada and the United States, which receive taxes from our activities. These revenues are used to help fund local public services and infrastructure. In 2005, we paid $150 million in income taxes. This excludes other taxes, such as property taxes of $82 million, that we paid in Canada and the United States.

BENEFITS TO COMMUNITIES

At the local level, our operations affect economies through the creation of jobs, the purchase of goods and services, and taxes paid to governments. We also invest in community programs and charitable organizations. In 2005, we invested $4.5 million in charitable and non-profit organizations in Canada and the United States. This was an increase of 14 per cent over 2004 levels.