CALGARY, Alberta, May 9, 2002 — Enbridge Thursday announced that it has agreed to sell its 100 per cent interest in the Cornwall Street Railway Light and Power Company Limited (Cornwall Electric) to Fortis Inc. for $67 million cash.
The sale, which is subject to approval by the Competition Bureau and the Ontario Energy Board, is expected to close in the third quarter.
Cornwall Electric is an electric power distribution utility company that distributes electric power to approximately 23,000 residential and business customers in Cornwall, Ontario, and the surrounding area.
Enbridge anticipates that there will be no impact on the 60 Cornwall Electric employees, and it will be business as usual for Cornwall Electric’s customers.
Enbridge acquired Cornwall Electric in 1998 to create a platform for taking advantage of opportunities that were expected to arise from the deregulation of the Ontario electricity market.
Although the investment has enabled Enbridge to gain knowledge and operations expertise in electric power distribution, the market did not evolve as hoped for, which lead to a lack of viable opportunities for Enbridge to invest in the privatization of Ontario Municipal Electric Utilities (MEUs). Enbridge is still interested in pursuing other avenues of significant scale to enter the electricity distribution market in our franchise area.
The sale is consistent with recent initiatives by Enbridge to focus more fully on its three core businesses – liquids pipelines, natural gas pipelines and natural gas distribution.
Fortis is a diversified electric utility holding company with interests in five other electric distribution utilities in Canada and internationally.
Enbridge Inc. is a specialist in energy transportation and distribution in North America and internationally. As a transporter of energy, Enbridge operates, in Canada and the U.S., the world’s longest crude oil and liquids transportation system.
The company also is involved in international energy projects and has a growing involvement in the natural gas transmission and midstream businesses. As a distributor of energy, Enbridge owns and operates Canada’s largest natural gas distribution company, which provides distribution services in Ontario, Quebec and New York State; and is developing a gas distribution system for the province of New Brunswick.
Enbridge employs approximately 4,000 people, primarily in Canada, the U.S. and South America. Enbridge common shares trade on The Toronto Stock Exchange in Canada and on the New York Stock Exchange in the U.S., under the symbol ENB. Information about Enbridge is available on the Company’s web site at www.enbridge.com.