Looking Ahead

The Partnership faces some challenges in 2009. Late last year Enbridge Inc. increased its ownership in the Partnership to 27 percent, providing a timely infusion of cash to help finance our expansion projects. With substantial capital expenditures committed in the 2009-2010 timeframe, the Partnership will need to secure additional funding. We will be monitoring the capital markets closely to determine the most efficient way to raise the remainder of the capital required for 2009 and 2010. The Partnership also will evaluate the possible sale of non-core assets and the monetization of certain assets to raise funding in support of our capital program. We also are reviewing our capital program to strictly target our spending on projects critical to safe operations and environmental protection as well as on projects that will contribute to improved operating performance and provide the highest rates of return.

We will continue to make steady progress towards the completion of our organic growth projects and to focus on the development of our existing pipeline systems. We will opportunistically evaluate strategic prospects to further expand the service capabilities of our existing systems. We have put sound processes in place to manage our operating expenses and are taking decisive action to eliminate or defer non-critical operating costs, never forgetting that safety comes first.

Like 2008, our immediate future brings some challenges. Our employees across the system responded to tough challenges in 2008 in an exemplary manner, and we have no doubt that they will meet the challenges in 2009 with equal determination. We are extremely proud and appreciative of their contributions to our success. We have every confidence that the Partnership will emerge from the weakened economy stronger and more focused than ever.