Letter to Shareholders

2010 was a year of significant accomplishment and continued growth, tempered by incidents that will have a lasting impact on our Company.

Enbridge had another very strong financial year in 2010, delivering outstanding organic growth across all of its business units and simultaneously securing new projects and assets that will extend the Company’s enviable rate of growth well into the future.

As great as these accomplishments were, 2010 was also humbling for Enbridge as we experienced two significant crude oil pipeline leaks in the United States. Applying the lessons learned from those leaks is the top priority for the Company.

Strong Growth

Enbridge again achieved industry-leading earnings per share growth in 2010. Adjusted earnings per share rose 13% to $2.66 per common share, which builds on a 25% increase in 2009.

Our 2010 growth was driven by two factors: the strong financial performance of all our businesses and the commencement of operations of $6.5 billion in new projects.

Over the past three years we have brought over $12 billion in projects into service and we currently have another $6 billion of commercially secured projects coming into service by 2014, as well as $30 billion of new opportunities under development across all of our businesses. In 2010 alone, we secured $4 billion in new growth projects and assets, and in the first two months of 2011 we announced an additional $0.4 billion in investments.

We are well positioned to meet our long-term growth objectives. We anticipate Enbridge’s adjusted earnings per share will grow at an average annual rate of 10% through the middle of this decade and, with the Company’s cash flow anticipated to grow at an even more rapid pace, we expect to continue delivering exceptional dividend growth to our investors. The Board has increased the 2011 dividend by 15%. Enbridge has increased its dividend an average of 11% per year over the past 10 years, and in more than 55 years as a publicly traded company we have never reduced the dividend. Few North American companies can match this record of accomplishment.

Our growth opportunities are aligned with our very reliable, low-risk business model that results in highly predictable earnings. We are involved in strategically important geographies, including the Canadian oil sands, the Bakken Formation, the Midwest Texas and Louisiana shale gas plays and offshore natural gas and oil. Our interests in wind, solar and alternative green energy power generation are focused on the growing renewable energy demand in North America.

In Conclusion

Our positive financial results in 2010 reflect the collective efforts of our 6,400 employees across the organization to achieve our vision of being the leading energy delivery company in North America.

We thank all of them for their outstanding work and continuing commitment to our corporate values. Enbridge has an exceptionally strong asset base, a proven ability to develop new businesses, and a track record of on-time, on-budget execution.

The Company offers investors visible and sustained earnings growth, a substantial and growing dividend and a very reliable business model. The unique combination of these attributes will continue to deliver superior results for our shareholders—solid returns that you can count on.

David A. Arledge Chair of the Board of Director	Patrick D. Daniel President and Chief Executive Officer

 

March 2, 2011