TORONTO, ONTARIO--December 5, 2003 - On December 3, 2003,
Enbridge Gas Distribution Inc. (EGD), a subsidiary of Enbridge
Inc., received a decision from the Ontario Energy Board (OEB)
concerning the recovery of a $50 million regulatory receivable
relating to deferred taxes associated with EGD's water heater
rental program, which was transferred to an unregulated affiliate
in 1999.
The OEB confirmed that EGD can recover from ratepayers an amount
equal to the deferred taxes associated with the water heater
rental program that became payable between October 1, 1999, the
date when the assets were transferred to an unregulated
affiliate, and May 7, 2002, the date when the assets were sold to
a third party. EGD will make a submission to the OEB related to
the deferred taxes that became payable during this period. EGD
estimates that the appropriate recovery of the regulatory
receivable is approximately $24 million. Once the amount has been
approved by the OEB, it will be recovered through rates. The
unrecoverable portion of the regulatory receivable will result in
a one-time, non-cash charge to EGD's fiscal 2004 first quarter
earnings.
A copy of the OEB's full decision is available on their website
Enbridge Inc. 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 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 Enbridge Gas Distribution, Canada's largest natural gas
distribution company, and provides gas distribution services in
Ontario, Quebec, New Brunswick and New York State. The Company
employs approximately 4,000 people, primarily in Canada, the U.S.
and South America. Enbridge 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 website at www.enbridge.com.
When used in this news release, the words "anticipate", "expect",
"project", "believe", "estimate", "forecast" and similar
expressions are intended to identify forward-looking statements,
which include statements relating to pending and proposed
projects. Such statements are subject to risks, uncertainties and
assumptions pertaining to operating performance, regulatory
parameters, weather and economic conditions and, in the case of
pending and proposed projects, risks relating to design and
construction, regulatory processes, obtaining financing and
performance of other parties, including partners, contractors and
suppliers.
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