CALGARY, ALBERTA and HOUSTON, TEXAS --(CCNMatthews - March 23, 2006) - Enbridge Inc. (TSX:ENB) (NYSE:ENB) and Enbridge Energy Partners, L.P. (NYSE:EEP) (the "Partnership") are pleased to advise that the U.S. Federal Energy Regulatory Commission (FERC) has approved an Offer of Settlement (Settlement) with respect to tolls for the Southern Access expansion. The Settlement was filed with FERC in December 2005 with the support of the Canadian Association of Petroleum Producers and shippers. The FERC order approves the Settlement as "...fair and reasonable and in the public interest."
The Settlement allows the Lakehead System to recover through a surcharge the costs associated with Southern Access expansion in addition to its existing base rates. The surcharge will be a transparent, cost-of-service-based tariff mechanism that the Partnership will true-up each year to actual costs and throughput. The decision marks the conclusion of a critical step toward the completion of the Southern Access expansion. With the toll design approved, Enbridge will continue with permitting and construction in order to have the facilities fully in service in early 2009.
The Southern Access expansion program includes expansions on Enbridge's Canadian mainline from Hardisty, Alberta to the international border near Neche, North Dakota and new pipeline construction in the U.S. by the Partnership.
The U.S. portion of the expansion will add a total of 400,000 barrels per day of capacity at an estimated cost of US$1,040 million (in 2005 dollars). This portion of the expansion will be undertaken on the Partnership's Lakehead System, with the first stage to add 44,000 barrels per day of capacity in 2007 and an additional 146,000 barrels per day by early 2008, with the final 210,000 barrels per day stage completed in early 2009. The new pipeline will be built between Superior, Wisconsin and Flanagan, Illinois, just west of Chicago. At Flanagan, the new line will have access to Chicago and will interconnect with Enbridge Inc.'s Spearhead Pipeline that began delivering to Cushing, Oklahoma on March 1, 2006.
Additional information on the Southern Access Program is posted at www.southernaccess.com.
ABOUT ENBRIDGE ENERGY PARTNERS
Enbridge Energy Partners, L.P. owns and operates a diversified portfolio of crude oil and natural gas transportation systems in the U.S. Its principal crude oil system is the largest transporter of growing oil production from western Canada. The system's deliveries to refining centers in the U.S. Midwest account for approximately 10 percent of total U.S. oil imports; while deliveries to Ontario, Canada satisfy approximately 60 percent of refinery demand in that region. The Partnership's natural gas gathering, treating, processing and transmission assets, which are principally located onshore in the active U.S. Mid-Continent and Gulf Coast area, deliver more than 2 billion cubic feet of natural gas daily. Enbridge Energy Management, L.L.C. (NYSE:EEQ) (www.enbridgemanagement.com) manages the business and affairs of the Partnership and its principal asset is an approximate 18 percent interest in the Partnership. Enbridge Energy Company, Inc., an indirect wholly owned subsidiary of Enbridge Inc. is the general partner and holds an approximate 11 percent interest in the Partnership.
ABOUT ENBRIDGE INC.
Enbridge Inc. (www.enbridge.com) 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. Enbridge 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, which provides distribution services in the provinces of Ontario, Quebec and New Brunswick, and in New York State. Enbridge is a Canadian company and its 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.
LEGAL NOTICE
When used in this news release, words such as "anticipates", "expects", "plans", "will" and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks, uncertainties and assumptions pertaining to factors such as: (1) changes in the demand for, or the supply of, and price trends related to crude oil and natural gas liquids; including the rate of development of the Alberta Oil Sands; (2) changes in or challenges to Enbridge Partners' tariff rates; (3) the effects of competition, including by other pipeline systems; (4) regulatory approvals; and (5) performance of other parties. Reference should also be made to Enbridge Partners' filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the most recently completed fiscal year, for additional factors that may affect results. These filings are available to the public over the Internet at the SEC's web site (www.sec.gov) and via Enbridge Partners' web site.