CORPORATE STRATEGY

Corporate Vision and Key Objective
Enbridge is an energy delivery company that transports natural gas and crude oil, which are used to heat homes, power transportation systems, and provide fuel and feedstock for industries. The Company’s vision is to be North America’s leading energy delivery company and its key objective is to generate superior shareholder value. The key elements of this vision are to:

	focus on operational excellence, customers and communities;
	generate above industry-average annual earnings per share growth;
	maintain a strong risk-reward investment profile and financial position;
	deliver superior dividend growth and capital appreciation to shareholders; and
	position the Company for the energy environment of the future.

Competitive Advantage
The Company’s ability to execute its strategy and realize its corporate vision depends on three key strengths, among others. These include the strategic position of the Company’s major assets, the diversification of the business and the Company’s consistent focus on customer service.

The Company’s assets are well positioned in North America. In the liquids business, the Company operates a major conduit between U.S. markets and the oil sands reserves in Western Canada. Enbridge’s existing right of way is valuable in developing major expansion projects due to the substantial capacity of its mainline system. Enbridge has economies of scale because of its multiple separate lines and has flexibility in terms of the types of products moved. Enbridge moves over 60 different grades of crude oil. Also, the Company serves a diversity of markets because of the extent and reach of its pipeline systems.

The Company’s sources of earnings and growth are diversified among liquids pipelines, gas pipelines, gas distribution and international investments. As well, the Company is actively exploring new growth platforms that would further diversify the business.

The Company is focused on adding value for customers and improving customers’ pricing. This focus has aligned the Company with supply-demand fundamentals, which has consistently formed a basis for the Company’s strategy. Two of the ways that the Company seeks to provide value to customers are through providing customers with access to diverse markets and optionality with respect to the timing of project development. The Company has a number of organic growth projects designed to enable customers to reach new markets.

Organic Growth Projects
The thrust of the Company’s strategy is growth through internally developed organic projects. The Company is advancing the development of a number of organic growth projects, some of which are summarized below and would support annual organic growth rates averaging 6% to 9% over the next five years. Enbridge will continue to pursue acquisitions that are accretive to earnings, on an opportunistic basis, as a supplementary source of growth.

Strategy
Enbridge has four key strategies to generate superior shareholder value.

Dividends
The Company’s dividend payout ratio reflects a strong and stable long-term outlook for the business. Balancing shareholders’ preference for income and its own need for capital, the Company targets to pay out approximately 60% to 70% of adjusted operating earnings as dividends. The following chart shows dividends per share for the last 10 years and estimated dividends for 2007, based on the quarterly dividend of $0.3075 per common share declared by the Board of Directors on January 16, 2007.

Dividends per Common Share (dollars per share)

Corporate Social Responsibility
Enbridge defines Corporate Social Responsibility (CSR) as conducting business in a socially responsible and ethical way, protecting the environment and health and safety of people, supporting human rights and engaging, respecting and supporting the communities and cultures with which the Company works.

A comprehensive system of stewardship and accountability is in place and functioning among Directors, management and employees. Examples include compliance with Sarbanes-Oxley requirements and the Canadian equivalent rules, internal and external audits of operations throughout the Company, employee compliance with Enbridge’s Statement of Business Conduct and a majority of independent Directors on the Company’s Board as well as plain and open communication with stakeholders.

Environmental initiatives include pursuing alternative and renewable energy technologies such as wind power, preventing pipeline leaks by conducting on-going inspection and maintenance programs as part of the comprehensive integrity management of pipelines and facilities, and the development of a strategy to reduce greenhouse gas emissions. This strategy involves initiatives such as improving the energy efficiency of pipelines, encouraging the efficient use of natural gas by customers and replacing older cast iron pipe with new polyethylene mains at EGD. Enbridge engages employees on health and safety issues through training, communication programs and the establishment of local and regional environmental, health and safety committees.

Stakeholder relations involve developing positive relationships with government agencies, environmental groups, landowners, business partners and local communities. Initiatives include early-stage project consultation with a variety of stakeholders on organic growth projects and public awareness programs on pipeline safety.

Enbridge supports universal human rights and reinforces this with comprehensive policies and practices addressing human rights. For example, Enbridge was one of the first Canadian companies to adopt the Voluntary Principles on Security and Human Rights, which stress the importance of promoting and protecting human rights throughout the world and the constructive role business can play in advancing these goals.

Enbridge makes voluntary contributions to charitable organizations in the areas of: education, health, environment, social services, arts and culture, civic leadership and volunteer resources in order to contribute to the economic and social development of communities where Enbridge employees live and work.

While Enbridge is focused on generating long-term value for investors, Corporate Social Responsibility defines the Company’s commitment to achieving and sustaining that objective in a socially and environmentally responsible way.

Core Businesses
The Company's activities are carried out through five business units:

	Liquids Pipelines, which includes the operation of the Enbridge crude oil mainline system and feeder pipelines that transport crude oil and other liquid hydrocarbons;
	Gas Pipelines, which consists of the Company’s interests in natural gas pipelines including Alliance Pipeline US, Vector Pipeline and Enbridge Offshore Pipelines;
	Sponsored Investments, which includes investments in EIF and EEP, both managed by Enbridge;
	Gas Distribution and Services, which consists of gas utility operations which serve residential, commercial, industrial and transportation customers, primarily in central and eastern Ontario, the most significant being Enbridge Gas Distribution. It also includes natural gas distribution activities in Quebec, New Brunswick and New York State, the Company’s investment in Aux Sable, a natural gas fractionation and extraction business, and the Company’s commodity marketing businesses; and
	International, which includes the Company’s two energy-delivery investments outside of North America.