CALGARY, ALBERTA--(Marketwire - Dec. 9, 2011) - Enbridge Inc. (TSX:ENB) (NYSE:ENB) 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.
Although establishing a gas distribution system in New Brunswick is an expensive proposition, natural gas does offer significant savings compared with more costly sources of energy available within the province, such as fuel oil and electric power. Enbridge believes that these savings can be enhanced and extended to additional customers through a cooperative restructuring of the terms of the franchise.
Enbridge Inc., a Canadian company, is a North American leader in delivering energy and one of the Global 100 Most Sustainable Corporations. As a transporter of energy, Enbridge operates, in Canada and the U.S., the world's longest crude oil and liquids transportation system. The Company also has a significant and growing involvement in natural gas gathering, transmission and midstream businesses, and an increasing involvement in power transmission. As a distributor of energy, Enbridge owns and operates Canada's largest natural gas distribution company, and provides distribution services in Ontario, Quebec, New Brunswick and New York State. As a generator of energy, Enbridge has interests in close to 860 megawatts of renewable and alternative energy generating capacity and is expanding its interests in wind and solar energy, geothermal and hybrid fuel cells. Enbridge employs approximately 6,400 people, primarily in Canada and the U.S. and is ranked as one of Canada's Greenest Employers, and one of the Top 100 Companies to Work for in Canada. Enbridge's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
Certain information provided in this news release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast" and similar expressions are intended to identify such forward-looking statements. Although Enbridge believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of risks and uncertainties pertaining to operating performance, regulatory parameters, weather, economic conditions and commodity prices. You can find a discussion of those risks and uncertainties in our Canadian securities filings and American SEC filings. While Enbridge makes these forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Except as may be required by applicable securities laws, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
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