Enbridge Responds to New Brunswick Legislation

Enbridge Inc.

responded today to legislation tabled in the New Brunswick assembly which would affect its gas distribution franchise in the province. "Enbridge understands the objectives of the Government of New Brunswick and we remain prepared to explore cooperative approaches to restructuring the province's gas distribution franchise," said Guy Jarvis, President of Gas Distribution for Enbridge Inc. "We believe that the franchise agreement can be restructured to enhance the benefits of natural gas to New Brunswick while preserving the attractiveness of the province as a place for further investment. We will employ all efforts to work with the Government toward that objective." Enbridge has invested approximately $480 million in the development of the provincial gas distribution system and has reinvested every dollar it has earned in the province, plus much more. Enbridge currently earns approximately $20 million per year in its New Brunswick business. The legislation includes provisions which could have the effect of substantially reducing those earnings, although the specific effects remain dependent on further discussions between Enbridge and the Government of New Brunswick, and the details of the regulations which will follow.