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## NOTES TO THE 2000 CONSOLIDATED FINANCIAL STATEMENTS 

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Enbridge Inc. (Enbridge or the Company) is a leader in the transportation and distribution of energy and related services. These businesses are conducted through four operating segments; Energy Transportation, Energy Distribution, Energy Services and International. These operating segments are strategic business units established by senior management of the Company to facilitate the achievement of the Company’s long-term growth objectives, to aid in resource allocation decisions and to assess operational performance. 

## Energy Transportation 

Energy Transportation includes the shipment of crude oil and other liquid hydrocarbons through common carrier and feeder pipelines and investments in natural gas transmission pipelines in Canada and the United States. Other activities include natural gas gathering, processing, and related midstream activities. 

## Energy Distribution 

The Energy Distribution business consists of gas utility operations which serve residential, commercial, industrial and transportation customers, primarily in central and eastern Ontario. This business also includes natural gas distribution activities in Quebec, New Brunswick and New York State, as well as electricity distribution in the City of Cornwall, Ontario. 

## Energy Services 

The activities of Energy Services include retail appliance, fireplace and water heater sales and service, a water heater rental program, and mass market and commercial plumbing, heating, ventilation and air conditioning, appliance repair and electrician contractor services in Canada and the United States. 

## International 

The Company’s International business investigates and invests in energy transportation and related energy projects outside of Canada and the United States. This segment also provides consulting and training services related to proprietary pipeline operation technologies and natural gas distribution. 

## 1. Summary Of Significant Accounting Policies 

The consolidated financial statements of the Company are prepared in accordance with Canadian generally accepted accounting principles (Canadian GAAP). These accounting principles are different in some respects from United States generally accepted accounting principles (U.S. GAAP) and the significant differences are described in Note 16. Amounts are stated in Canadian dollars unless otherwise noted. 

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities in the financial statements. Actual results could differ from those estimates. 

## Basis of Presentation 

The consolidated financial statements include the accounts of Enbridge Inc., its subsidiaries and its proportionate share of the accounts of its joint ventures. Investments in entities which are not subsidiaries or joint ventures, but over which the Company exercises significant influence, are accounted for using the equity method. Other investments are accounted for at cost. 

The Company’s Energy Distribution business is conducted primarily through a wholly-owned subsidiary, The Consumers’ Gas Company Ltd. (Enbridge Consumers Gas). The fiscal year end of Enbridge Consumers Gas is September 30 and its results are consolidated on a quarter lag basis, which reflects the results of Enbridge Consumers Gas operations in accordance with its regulatory, tax and operating cycles. Accordingly, references to “December 31” mean the financial position of Enbridge Consumers Gas as at September 30 and references to the “year ended December 31” mean the results of Enbridge Consumers Gas for its fiscal year ended September 30. 

