CALGARY, ALBERTA--(CCNMatthews - Oct. 2, 2006) - Enbridge Income Fund (TSX:ENF.UN) (the Fund) and Enbridge Inc. (TSX:ENB) (NYSE:ENB) (Enbridge) today announced the closing of the Fund's acquisition of Enbridge's interests in three wind power projects in Western Canada. Effective October 1, 2006, the Fund acquired Enbridge's 50% interest in the SunBridge project at Gull Lake, Saskatchewan, and Enbridge's 33.3% interest in the Magrath and Chin Chute projects in southeast Alberta for $42 million plus certain post-closing adjustments.
The acquisition is immediately accretive to the distributable cash flow of the Fund and is consistent with the Fund's objective to prudently increase cash available for distribution to unitholders through acquisitions of low-risk energy infrastructure. The impact of the acquisition will be factored into the Board of Trustees' year-end review of the distribution rate, which is undertaken in conjunction with the Fund's annual budgeting process. The Fund intends to initially finance the acquisition through its existing credit facility.
The three wind power projects will collectively have the capacity to generate 71 MW of power. The SunBridge project consists of 17 wind turbines capable of generating 11 MW, and has been operating since 2002. The Magrath project consists of 20 turbines capable of generating 30 MW, and has been operating since 2004. The Chin Chute project, which consists of 20 recently constructed turbines capable of generating 30 MW, is expected to begin commercial operations this fall.
Enbridge Income Fund is an unincorporated, open-ended trust created to provide a stable and sustainable flow of distributable cash to unitholders. The Fund is a premier income fund in Canada with a low-risk profile focused on energy infrastructure assets. It owns a 50% interest in the Canadian segment of the Alliance Pipeline, a 100% interest in Enbridge Pipelines (Saskatchewan) Inc., a 50% interest in NRGreen Power Limited Partnership, and the recently acquired wind power assets in Western Canada. Enbridge Income Fund's ordinary units are listed and trade on the Toronto Stock Exchange under the symbol "ENF.UN". Information about Enbridge Income Fund is available on the Fund's web site at www.enbridgeincomefund.com.
Enbridge Inc., a Canadian company, is a leader in energy transportation and distribution in North America and internationally. As a transporter of energy, Enbridge operates, in Canada and the United States, the world's longest crude oil and liquids pipeline system. The Company also has international operations and a growing involvement in the natural gas transmission and midstream businesses. As a distributor of energy, Enbridge owns and operates Canada's largest natural gas distribution company, and provides distribution services to approximately 1.8 million customers in Ontario, Quebec, New Brunswick and New York State. Enbridge employs approximately 4,700 people, primarily in Canada, the United States and South America. Enbridge's common shares trade on the Toronto Stock Exchange in Canada and on the New York Stock Exchange in the United States under the symbol ENB. Information about Enbridge is available on the Company's website at 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 Income Fund and Enbridge Inc. believe that these statements are based on information and assumptions that 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 The Enbridge Inc. and Enbridge Income Fund Canadian securities filings and in Enbridge Inc.'s American SEC filings. While Enbridge Income Fund and Enbridge Inc. make 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 to the extent required by applicable securities laws and regulations, Enbridge Income Fund and Enbridge Inc. assume 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.
For more information please contact:
Enbridge Income Fund
Jim Rennie
Media
(403) 231-3931
Email: jim.rennie@enbridge.com
or
Enbridge Income Fund
Anu Phatak
Investment Community
(403) 231-5942
Email: anu.phatak@enbridge.com
or
Enbridge Inc.
Bob Rahn
Investment Community
(403) 231-7398
Email: bob.rahn@enbridge.com
Website: www.enbridge.com