Enbridge Inc. advised that it faces a potential write down of a significant portion of the value of its investment in Enbridge Gas New Brunswick (EGNB), the New Brunswick gas distribution utility. The potential write down relates to the impact of draft regulations for setting gas distribution rates within the province which were recently posted for a 30-day comment period by the Government of New Brunswick on its website. Enbridge's investment in EGNB currently stands at approximately $460 million.

"We are extremely disappointed with the regulations as currently drafted," said Guy Jarvis, President of Gas Distribution for Enbridge. "Enbridge has made a substantial investment in bringing natural gas to New Brunswick businesses and residents, including reinvesting the money we have earned in the province to further develop our system, and we have adhered to our side of the franchise agreement with the government. For several reasons it is more expensive to distribute natural gas in the Province of New Brunswick than it is in larger markets such as Ontario, but gas is still the lowest cost source of energy available in New Brunswick. The regulations, as drafted, would severely limit our ability to extend the benefits of natural gas to additional businesses and residents in New Brunswick. We believe that natural gas offers great potential benefits to New Brunswick, and that the regulations could be structured to ensure continued savings for existing customers while supporting extension of those same savings to new customers. We will withhold further comment pending completion of discussions with the government."

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