8-K

ENBRIDGE INC 8-K Report (Oct 1, 2012)

Filed October 1, 2012For Securities:ENBENBMFEBBGFEBRGFEBRZFENBGFENBRFENFFFEBGEFENBFFENBHFENBNFENBOFENBSFEBBNFENNPF

Summary

This 8-K filing from Enbridge Inc. (ENB) on October 1, 2012, primarily announces Enbridge's participation in a joint venture, NextBridge Infrastructure, with NextEra Energy Canada and Borealis Infrastructure to bid on developing a new power transmission line in Northern Ontario. This project, the Ontario East-West Transmission Tie, is estimated at $600 million and aims to enhance grid reliability, facilitate the retirement of coal facilities, and support renewable energy development in the region, with an expected in-service date of 2017. Additionally, the filing includes a press release detailing adjustments to Enbridge Gas Distribution's natural gas rates approved by the Ontario Energy Board, effective October 1, 2012. These adjustments lead to a modest annual increase for typical residential customers purchasing gas supply from Enbridge, primarily due to commodity costs. The company also announced its upcoming fourteenth annual Enbridge Day Investment Community Conference to be held in early October 2012, where business updates and strategic focus will be discussed.

Key Highlights

  • 1Enbridge Inc. is partnering with NextEra Energy Canada and Borealis Infrastructure to form NextBridge Infrastructure and bid on the Ontario East-West Transmission Tie project.
  • 2The proposed transmission line in Northern Ontario (Wawa to Thunder Bay) is an estimated $600 million investment aimed at improving reliability and enabling renewable energy growth.
  • 3Enbridge Gas Distribution has received Ontario Energy Board approval for new natural gas rates effective October 1, 2012, resulting in a slight annual increase for typical residential customers.
  • 4Natural gas remains the most economical heating choice in Ontario compared to electricity and oil, with a typical residential customer paying significantly less annually than five years prior.
  • 5Enbridge Inc. announced its fourteenth annual Enbridge Day Investment Community Conference to provide business updates and strategic outlook.
  • 6The company's forward-looking statements emphasize caution regarding risks and uncertainties inherent in the energy sector and its operations.

Frequently Asked Questions

The formation of NextBridge Infrastructure with NextEra Energy Canada and Borealis Infrastructure positions Enbridge to potentially develop a significant new power transmission line in Northern Ontario. This project aligns with Enbridge's growing involvement in power transmission and could contribute to grid modernization, renewable energy integration, and a reduction in reliance on coal-fired power in the region.

For typical residential customers who buy their gas supply and transportation from Enbridge Gas Distribution, rates will increase by approximately $7 annually, primarily due to increased commodity costs. Customers who purchase gas supply from a marketer but use Enbridge for transportation will see a slight decrease of about $3 annually.

The Ontario East-West Transmission Tie is estimated to require an investment of $600 million. If the joint venture is selected, the project is expected to be in-service as early as 2017.

Enbridge Inc. is holding its fourteenth annual Enbridge Day Investment Community Conference on October 3rd and 4th, 2012, in Toronto and New York, respectively. The Toronto session will be webcast, and archived materials will be available on Enbridge's website, providing an update on business activities, market dynamics, and strategic focus.