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Enbridge is committed to achieving growth in its existing businesses and through development of complementary businesses. The Company has entered into a strategic alliance with Global Thermoelectric to develop and distribute natural gas- fuelled fuel cell products. Enbridge invested $25.0 million to fund further technology, design and product development work required to reach a commercial launch. This investment will provide Enbridge exclusive distribution rights in Canada for the residential units. 

## LIQUIDITY AND CAPITAL RESOURCES 

The Corporation’s cash generated from operations, access to capital markets in Canada and the United States, and approximately $2.2 billion in unutilized credit facilities provide sufficient resources to finance growth opportunities, debt repayments and dividend distributions. 

## Operating Activities 

Cash provided from operating activities before changes in operating assets and liabilities is $660.4 million for the year ended December 31, 2000, compared with $626.9 million and 

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$490.4 million for 1999 and 1998, respectively. The increase is primarily a result of the full year operations of the Enbridge Athabasca System and Enbridge System expansions, as well as the addition of tankage at the Athabasca facility. Operating cash flows in 1999 increased over 1998 levels primarily as a result of commissioning of additional liquids pipeline projects during the year. 

Additional funding requirements for operating assets and liabilities occurred in 2000 reflecting the expansion of business operations and higher costs associated with gas in storage. Such working capital changes were lower in 1999 when compared with 1998 due to the reduced level of investing activities. 

## Investing Activities 

Cash used in investing activities for the year ended December 31, 2000 is $949.8 million compared with $1,205.7 million in 1999. The major elements of the 2000 capital spending program were the continued growth of core businesses, operational efficiency, and integration along the energy value chain. Included in long-term investments were additional investments of $326.7 million in the Vector Pipeline (1999 — $24.6 million, 1998 — $23.0 million), $142.1 million in the Alliance Pipeline (1999 — $138.0 million, 1998 — $105.4 million), and a $25.0 million investment in Global Thermoelectric. During 2000, the acquisition of an additional 7.2% in OCENSA and the remaining 50% of CITCOL ($77.2 million) was also completed. 

Capital expenditures have decreased in 2000, reflecting the commissioning of recent pipeline expansions. In 1999, expenditures primarily related to system expansions in Energy Transportation, including construction of the Enbridge Athabasca System ($160.3 million), Phase I of the Terrace expansion ($119.4 million), and Line 9 Reversal ($18.0 million). Energy Distribution continued core maintenance and system expansion throughout the period 1998 to 2000. 

## Financing Activities 

Over the three year period, the Corporation’s level of financing activities also reflected its growth and investment strategies. 

Funding sourced from debt or equity is determined primarily on the basis of the capital structure appropriate for each business. Certain of the Corporation’s regulated pipeline and gas distribution operations issue long-term debt to finance capital additions. 

