1. NATURE AND DESCRIPTION OF THE FUND


Enbridge Income Fund (the Fund) is an unincorporated open-ended trust established by a trust indenture under the laws of the Province of Alberta. The Fund commenced operations on June 30, 2003. Enbridge Management Services Inc. (EMSI), a wholly owned subsidiary of Enbridge Inc. (Enbridge), administers the Fund. EMSI also serves as the manager of Enbridge Commerical Trust (ECT), a subsidiary of the Fund.

The Fund conducts its business through three operating segments: Alliance Canada, Saskatchewan System and Green Power. These segments are strategic business units established by management along service lines to assess operational performance and achieve the Funds long-term goals.

Alliance Canada
Alliance Canada consists of the Fund’s 50% interest in Alliance Pipeline Limited Partnership. Its primary business is the commercial operation of the Canadian portion (approximately 1560 km) of an approximately 3000 km high-pressure, natural gas transmission system and an approximately 730 km lateral pipeline system and related infrastructure.

Saskatchewan System
The Saskatchewan System’s primary business activity is the transportation of crude oil and other liquid hydrocarbons by pipeline through the ownership and operation of the Saskatchewan Gathering, Westspur and Weyburn pipeline systems located primarily in Saskatchewan as well as the Virden pipeline system located in Manitoba.

Green Power
Green Power includes interests in the following entities, which produce electricity via alternative energy sources: a 50% interest in NRGreen Power Limited Partnership (NRGreen); a 50% interest in the SunBridge wind power project located at Gull Lake, Saskatchewan; and a 33% interest in each of the Magrath and Chin Chute wind power projects in Southern Alberta. NRGreen produces electricity by harnessing the waste heat produced by certain gas turbines on the Alliance Canada pipeline and converting this waste heat to electrical energy. The production capacity is 5 megawatts (MW) of power for NRGreen. The SunBridge, Magrath, and Chin Chute wind turbines collectively have a capacity to generate 71 MW of power.