CALGARY, ALBERTA--(CCNMatthews - Nov. 21, 2005) - Enbridge Inc. (TSX:ENB) (NYSE:ENB) today announced that it will be developing 200 megawatts of wind power on the eastern shore of Lake Huron in Bruce County, Ontario.
The Ontario Ministry of Energy awarded two projects to Enbridge and Leader Capital Corp., under its Renewable Energy Supply Request for Proposals. Enbridge has subsequently acquired Leader Capital's subsidiary, Leader Wind Corp., and now owns a 100% working interest in the two wind power projects.
Enbridge has executed a 20-year electricity purchase agreement with the Ontario Power Authority for all of the power produced by the two adjacent projects.
Enbridge will assume overall responsibility for project construction, which is expected to start in mid-2006. Enbridge has been operating the SunBridge wind power project in Saskatchewan for more than three years and will operate the two Ontario projects when commercial operations begin in in early 2007.
Total capital expenditures for the projects will be approximately $400 million. The projects are expected to be accretive to earnings per share in the first year of operation.
"The Ontario wind power projects reflect our ongoing commitment to sustainable development and an emerging power generation platform," said Patrick D. Daniel, Enbridge President & Chief Executive Officer. "We have been pleased with our three existing wind power projects in Alberta and Saskatchewan, which have a combined capacity of over 70 megawatts. The long-term offtake contract with the Ontario Power Authority, at predetermined power prices, makes this investment consistent with maintaining a low risk profile and stable cash flows. We are also very excited about expanding our involvement in Ontario, where we already have major energy infrastructure investments, and helping to address the need for new sources of power in the Province."
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 U.S., the world's longest crude oil and liquids transportation 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 in Ontario, Quebec, New Brunswick and New York State. Enbridge employs approximately 4,400 people, primarily in Canada, the U.S. and South America. Enbridge's common shares trade on the Toronto Stock Exchange in Canada and on the New York Stock Exchange in the U.S. under the symbol ENB. Information about Enbridge is available on the Company's web site 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 believes 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 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. 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.