Enbridge owns an equity interest in Noverco through ownership of 32.1% of the common shares and a cost investment in preferred shares. Noverco is a holding company that owns approximately 71.0% of Gaz Metro Limited Partnership (Gaz Metro), a publicly traded gas distribution company operating in the province of Quebec and the state of Vermont.
Results of Operations
Noverco adjusted earnings were $20.4 million for the year ended December 31, 2008, comparable to $18.6 million for the year ended December 31, 2007 and $18.7 million for the year ended December 31, 2006.
In 2006, earnings were impacted by a non-operating adjusting item of a $4.0 million as a result of the recognition of a dilution gain from a Gaz Metro unit issuance in which Noverco did not participate.
Weather variations do not affect Noverco's earnings as Gaz Metro is not exposed to weather risk. A significant portion of the Company's earnings from Noverco is in the form of dividends on its preferred share investment, which is based on the yield of 10-year Government of Canada bonds plus 4.34%.