Our Economic Performance

HOW WE DIRECTLY BENEFIT STAKEHOLDERS

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

In addition, we have the potential to stimulate regional economies in Canada and the United States through cash distribution to our various economic stakeholders.

BENEFITS TO INVESTORS

Our returns to shareholders are delivered through a combination of capital growth and dividends. In 2004, $316 million was paid to shareholders as dividends, up 11% from the previous year. Dividends paid on common shares to our investors have grown at an annual compounded rate of 9.6% over 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 4,500 employees with an annual payroll of about $300 million CDN. In 2004, we paid about $30 million CDN 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, our DSM programs have delivered about 1.8 billion cubic metres of natural gas savings (the equivalent of enough gas to supply 620,000 homes each year) and net energy savings to our customers of about $865 million.

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 2004, we paid $243 million in income taxes, a 20% increase from 2003 levels. This excludes other taxes, such as property taxes, that we paid in Canada and the U.S.

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 2004, we invested $4.2 million in charitable and non-profit organizations in Canada and the United States. This was an increase of 20% over 2003 levels.

Our annual Enbridge Day conference presents us with an opportunity to put our senior management team in front of key financial analysts and institutional investors. In 2004, about 90 investor analysts attended our Enbridge Day conference in Toronto, and another 40 participated in a similar conference in New York. As part of Enbridge Day, members of Enbridge's Corporate Leadership Team delivered presentations about our business and answered questions from the analysts about our core businesses, our strategies for growth and our financial plans. For the first time, the conferences also featured Enbridge's corporate social responsibility program. "The conferences are about efficiently demonstrating to a large number of financial analysts how Enbridge does things, what we're thinking about doing, and giving them a chance to talk with our leadership about the industry and the business," says Colin Gruending, Enbridge's Director, Investor Relations (2004).

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At Enbridge, there are no dividing lines between good business practices and being a responsible company — one that is ethical, is a steward of the environment, is safe, engages its stakeholders and is attentive to social needs.

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