MP, pipeline firms sign marketing agreement

MP, pipeline firms sign marketing agreement Minnesota Power, Inc., Lakehead Pipe Line Partners, L.P. and Enbridge Pipelines, Inc. have signed an agreement under which the pipeline companies could reduce electricity use during periods of high electric prices or demand, releasing energy to be marketed to other power buyers. The agreement runs from January 1, 2000 through December 31, 2001.

The pipeline companies can trim usage through pumping flexibility on their integrated pipeline systems that transport crude oil and natural gas liquids from Edmonton, Alberta to Superior, Wisconsin. MPEX, Minnesota Power's wholesale marketing division, will work with several utilities serving the pipeline and exclusively market the released energy.

"We're combining the energy usage flexibility of Lakehead and Enbridge with Minnesota Power's marketing capabilities to creatively meet the needs of the wholesale electric marketplace," said Bob Edwards, president of MP electric operations. "Consumers will benefit if we can improve the availability of electricity during peak demand periods."

"Minnesota Power is an innovative service provider that knows our operations," said Stephen Wuori, president of Enbridge and Lakehead Pipelines. "This initiative is a valuable extension of a strong relationship built over 50 years of operating in this region."

"Minnesota Power has significant operating experience with power trading in today's volatile power markets and that will bring us the most benefit as we reduce electricity use while meeting our customer requirements," added Larry DeBriyn, vice president, Lakehead Pipe Line.

Minnesota Power, Inc. (NYSE: MPL) is a multi-services company with corporate headquarters in Duluth, Minnesota. Minnesota Power holdings include the second largest wholesale automobile auction network in North America; the leading provider of independent auto dealer inventory financing; the largest investor-owned water utilities in Florida and North Carolina; significant real estate holdings in Florida and a low-cost electric utility that serves some of the largest industrial customers in the United States.

Lakehead Pipe Line Partners, L.P. (NYSE: LHP) owns the United States portion of the world's longest liquid petroleum pipeline. Lakehead Pipe Line Company, Inc., an indirect wholly owned subsidiary of Enbridge, Inc., based in Calgary, Alberta, holds a 15.3 percent interest in the Partnership. Enbridge, Inc. is the parent company of Enbridge Pipelines, Inc.

Enbridge, Inc. (TSE: ENB; NASDAQ: ENBRF) is a leader in energy transportation, distribution and services. As a transporter of energy, Enbridge operates, in Canada and the U.S., the world's longest crude oil and liquids pipeline system. The company also is involved in liquids marketing and international energy projects, and has a growing involvement in the natural gas midstream and transmission businesses. As a distributor of energy, Enbridge owns and operates Canada's largest natural gas distribution company, which provides gas and retail services in Ontario, Quebec and New York State; and is involved in the generation and distribution of electricity. In addition, Enbridge provides retail energy products and services to a growing number of Canadian and U.S. markets.