HIGHLIGHTS

This discussion should be read in conjunction with the audited consolidated financial statements of Enbridge Income Fund as at and for the years ended December 31, 2006 and 2005.

Selected Operating and Financial Highlight1
    
 
(millions of Canadian dollars except where otherwise noted)          
Year ended December 31,
2006
   2005   2004
Average Daily Throughput Volume          
    Alliance Canada (millions of cubic feet per day)
1592.0
  
1,597.0
   1,581.0
    Saskatchewan System2 (thousands of barrels per day)          
        Westspur System
155.2
  
148.7
   140.9
        Saskatchewan Gathering System
103.8
  
103.2
   97.8
        Weyburn System
37.3
  
35.0
   31.4
        Virden System
20.7
   21.5   19.0
    Green Power 3 (thousands of megawatt hours produced)
52.2
   –   –
Revenues
254.4
  
249.0
   239.8
Earnings
35.3
  
15.2
   10.4
    Per Unit (dollars per unit)
1.02
  
0.44
   0.30
Cash Available for Distribution
74.3
  
74.3
   68.7
Cash Distributions Declared
67.3
  
66.1
   62.5
Cash Distributions Declared Per Unit (dollars per unit)          
    Ordinary Units
0.9259
  
0.9100
   0.8607
    Subordinate Units
0.9259
  
0.9100
   0.8607
     ECT Preferred Units
0.9259
  
0.9100
   0.8607
Total Long-Term Liabilities
1,501.2
  
1,488.8
   1,524.3
Total Assets
1,859.4
  
1,842.9
   1,903.3
ECT Preferred Units (number of units)
38,023,750
  
38,023,750
   38,023,750
Ordinary Units (number of units)
20,125,000
  
20,125,000
   20,125,000
Subordinated Units (number of units)
14,500,000
  
14,500,000
   14,500,000
Total Number of Units
34,625,000
  
34,625,000
   34,625,000
1 Financial Highlights have been extracted from financial statements prepared in accordance with Canadian Generally Accepted Accounting Principles in millions of Canadian dollars unless otherwise noted.
2 Totals are not presented as the same volumes can be transported through a combination of the pipelines comprising the Saskatchewan System.
3 Wind assets were acquired on October 1, 2006. NRGreen's Kerrobert waste heat recovery facility began operations December 29, 2006.
 
 

In the interest of providing Enbridge Income Fund (the Fund) unitholders and potential investors with information about the Fund and its subsidiaries, including management’s assessment of the Fund’s and its subsidiaries’ future plans and operations, certain information provided in this Management’s Discussion and Analysis (MD&A) constitutes forward-looking statements or information (collectively, "forward-looking statements"). Forward-looking statements are typically identified by words such as "anticipate", "expect", "project", “estimate”, “forecast”, “plan”, “intend”, “target”, “believe” and similar words suggesting future outcomes or statements regarding an outlook. Although the Fund believes that these forward-looking statements are reasonable based on the information available on the date such statements are made, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements.

The Fund’s forward-looking statements are subject to risks and uncertainties pertaining to operating performance, regulatory parameters, economic conditions, interest rates and commodity prices, including but not limited to those risks and uncertainties discussed in this MD&A and in the Fund’s other filings with Canadian securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and the Fund’s future course of action depends on management’s assessment of all information available at the relevant time. Except to the extent required by applicable securities law and regulations, the Fund assumes no obligation to publicly update or revise any forward-looking statements made in this MD&A or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to the Fund or persons acting on the Fund’s behalf, are expressly qualified in their entirety by these cautionary statements.