Green Power and Transmission consists of our investments in renewable energy assets and transmission facilities. Renewable energy assets consist of wind, solar, geothermal and waste heat recovery facilities and are located in Canada primarily in the provinces of Alberta, Ontario and Quebec and in the United States primarily in Colorado, Texas, Indiana and West Virginia. We also have assets under development located in Europe.

Green Power and Transmission includes interests in more than 1,700 MW of net renewable power generation capacity. Of this amount, approximately 477 MW is generated by wind facilities located in Canada, approximately 912 MW is generated by wind facilities located in the 249United States, approximately 100 MW Chapman Ranchis derived from a 24.9% interest in the 400 MW Rampion Offshore Wind Project (Chapman Ranch)and approximately 155 MW is derived from a 25% interest in Texas, which was placed into service in late October 2017.the Hohe See Offshore wind power project and its subsequent expansion, both currently under construction. The vast majority of the power produced from these wind farmsfacilities is sold under long-term power purchase agreements. WeGreen Power and Transmission also haveincludes three solar facilities located in Ontario and a solar facility located in Nevada, with 10051 MW and 5027 MW, respectively, of net power generating capacity. Also included in capacity net of our partners’ interests.

Green Power and Transmission isalso includes the Montana-Alberta Tie-Line, our first power transmission asset, a 300 MW transmission line from Great Falls, Montana to Lethbridge, Alberta.

Our Green Power and Transmission assets operate in the North American and European power markets, which are subject to competition and the supply and demand balance for power in the provinces and states in which they operate. The vast majority of the revenue generated by currently operating assets is generated pursuant to long term power purchase agreements or has been substantially hedged. As such, the financial performance of these assets is not significantly impacted by fluctuating power prices arising from supply/demand imbalances or the actions of competing facilities during the term of the applicable contracts. However, the renewable energy market sector includes large utilities and small independent power producers, which are expected to aggressively compete with us for new project development opportunities.opportunities and for the right to supply customers when contracts roll off.

Our operationsGreen Power and Transmission assets operate in the North American and European power markets, which are subject to competition and the supply and demand balance for power in the provinces and states in which they operate. The vast majority of the revenue generated by currently operating assets is generated pursuant to long term power purchase agreements or has been substantially hedged. As such, the financial performance of these assets is not significantly impacted by fluctuating power prices arising from supply/demand imbalances or the actions of competing facilities during the term of the applicable contracts. However, the renewable energy market sector includes large utilities and small independent power producers, which are expected to aggressively compete for new project development opportunities and for the right to supply customers when contracts roll off.

Operational regulation risks relate to complianceThrough wholly-owned marketing subsidiaries, Energy Services provides crude oil, natural gas, NGL and power marketing services. Energy Services transact at many North American market hubs and provide our customers with applicable operational rulesvarious services, including transportation, storage, supply management and regulations mandatedproduct exchanges. Our Energy Services subsidiaries are primarily physical commodity marketing companies focused on servicing customers across the value chain and capturing value from quality, time and location price differentials when opportunities arise. To execute these strategies, Energy Services transports and stores on both Enbridge-owned and third party assets using a combination of contracted long-term and short-term pipeline, storage tank, rail car and truck capacity agreements.

Energy Services earnings are primarily generated from arbitrage opportunities which, by governments or applicable regulatory authorities, breaches of which could result in fines, penalties, operating restrictions and an overalltheir nature, can be replicated by competitors. An increase in operating and compliance costs.

Our gas distribution utility operations are regulated by the OEB, the Quebec Régie de l’énergie and the EUBNBEUB, among others. Regulators’ future actions may differ from current expectations, or future legislative changes may impact the regulatory environments in which we operate. To the extent that the regulators’ future actions are different from current expectations, the timing and amount of recovery or refund of amounts recorded on the Consolidated Statements of Financial Position, or that would have been recorded on the Consolidated Statements of Financial Position in absence of the effects of regulation, could be different from the amounts that are eventually recovered or refunded.

We seek to mitigate economicoperational regulation risk. We retain dedicated professional staff and maintain strong relationships with customers, intervenors and regulators. This strong regulatory relationship continued in 2018 with the OEB’s decision to approve of the application to amalgamate EGD and Union Gas in accordance with the OEB's guidance for Mergers, Acquisitions, Amalgamations and Divestitures. The terms ofdecision approved a rate negotiations are reviewed by our legal, regulatorysetting mechanism, effective January 1, 2019, to be employed during a five-year deferred rebasing period from 2019 through 2023, and finance teams.allows us the opportunity to drive efficiencies and synergies.

DistributionEGD’s distribution rates, arebeginning in 2014 through 2018, were set under a five-year customized incentive rateregulation (IR) plan.  The plan (IR Plan) approvedrequired EGD to update select items each year beginning in 20142015 and provide a level of stability by having a long-term agreement with the OEB which allows usthrough 2018, in order to recover our expected capital investments under the agreement, as well as an opportunity to earn above the OEBestablish final allowed ROE.revenues and rates. Under the customized IR Plan, we are permitted to recover,plan, EGD shared equally with OEB approval, certain costs that were beyond management control, but that were necessarycustomers, earnings above the approved allowed ROE. EGD's after-tax ROE was 9.00% for the maintenance of our services. The customized IR Plan also includes a mechanism to reassess the customized IR Plan2018 and return to cost of service if there are significant and unanticipated developments that threaten the sustainability of the customized IR Plan.8.78% for 2017.

DistributionUnion Gas’ distribution rates, beginning in 2014 arethrough 2018, were set under a five-year incentive regulation framework using price cap methodology. The price cap framework establishesIR plan which established new rates at the beginning of each year through the use of a pricing formula, rather than through the examination of revenue and cost forecasts. The framework allows for annual inflationary rate increases, offset by a productivity factor, as well as rate increases or decreases in the small volume customer classes where use declines or increases, and certain adjustments to base rates. Further, it allows for the continued pass-through of gas commodity, upstream transportation and demand side management costs, the additional pass-through of costs associatedIR plan included an earnings sharing mechanism with major capital investments and certain fuel variances, an allowance for unexpected cost changescustomers that are outside of management’s control, and equal sharing of tax changes betweenpermitted Union Gas to fully retain the ROE from utility operations up to 9.93%, to retain 50% of any earnings between 9.93% and customers,10.93%, and finally an opportunity to earnretain 10% of any earnings above the OEB allowed ROE.10.93%.

Our workers, operations and facilities are subject to municipal, provincial and federal legislation which regulate the protection of the environment and the health and safety of workers. For the environment,Environmental legislation primarily this includes the regulation of discharges to air, land and water; the management and disposal of solid and hazardous waste, and contaminated soil and groundwater;waste; and the assessment and management of contaminated sites.

The operation of our gasGas distribution system and gas facilities comesoperation, as with any industrial operation, has the potential risk of incidents, abnormal operatingor emergency conditions, or other unplanned events that could result in spills or emissions to the environment that could exceedin excess of permitted levels. These events could result in injuries to workers or the public, fines, penalties,orders or charges, adverse impacts to the environment in which we operate, within, and/or property damage. We could also incur future liability for environmental (soil and groundwater) contamination associated with past and present site activities.

In addition to the operation of the gas distribution system operation, we also operate unregulated operations including small oil and brine production and storage facilities in southwestern Ontario. Environmental risk associated with these facilities is the possibility of spills, releases or leaks.potential for unplanned releases. In the event of an incident (spill),a release, remediation of the affected area would be required. There would also be potential for fines, orders

The gas distribution system and our other operations must maintain a number of environmental approvals and permits from governmental authorities to operate. As a result, these facilitiesassets and the distribution networkfacilities are subject to periodic inspection. An Annual Written Summary Report is submitted to the Ontario Ministry of Environment, Conservation and Parks (MECP), formerly the Ministry of Environment and Climate Change (MOECC) to demonstrate we are in good standing in relation to itswith our Environmental Compliance Approvals. Failure to maintain regulatory compliance could result in operational interruptions, fines, penalties, and/or orders for additional pollution control technology or environmental remediation, etc.mitigation. As environmental requirements and regulations become more stringent, the cost to maintain compliance and the time required to obtain approvals has consistently increased.

On July 3, 2018, the Government of Ontario commenced a capissued Ontario Regulation 386/18 (the “Regulation”) which revoked the Cap and trade system on January 1, 2017. UnderTrade program regulation and prohibits registered participants from purchasing, selling, trading or otherwise dealing with emission allowances or credits. On July 25, 2018, the capGovernment of Ontario introduced Bill 4 to wind down the Cap and trade regulation,Trade program. On October 31, 2018, Bill 4, Cap and Trade Cancellation Act, 2018 (the “Act”) received Royal Assent. This Act detailed the wind down of the Ontario Cap and Trade program, effectively expunging any compliance obligation associated with greenhouse gas emissions.

Additionally, in October 2018, the federal government confirmed that Ontario will be subject to the federal government’s carbon pricing program (otherwise known as the Federal Carbon Pricing Backstop Program) (the Program). EGD and Union Gas (together, the Utilities) are required to purchase emission allowances or credits for most of our customers’ use of natural gas as well as for emissions from our own operations. This process is complex and requires ongoing monitoring of the carbon market and related climate change and carbon policies not only in Ontario but also in other newly linked jurisdictions as at January 1, 2018 - namely California and Quebec. This linkage which has been enabled in Ontario with various GHG reporting and cap and trade regulation amendments over the course of 2017 will create a larger and more liquid market for carbon allowances and credits, which may help to keep compliance costs for our customers down. However, non-compliance or unexpected policy changes may cause significant changes to the cost of maintaining compliance and needs to be closely monitored to ensure impacts are understood.

As with previous years, in 20172018, the UtilitiesEGD and Union Gas each reported GHG emissions to the Ontario MOECC, Environment and Climate Change Canada,MECP, and a number of voluntary reporting programs. Emissions from Ontario combustion sources were verified in detail by a third party accredited verifier with no material discrepancies found. Additionally, operational emissions from venting, fugitive and natural gas distribution emissions were reported to the MOECC for the first timeMECP starting in 2017 in accordance with O. Reg. 143/16 - Quantification, Reporting, and Verification of Greenhouse Gas Emissions Regulation standard quantification methods ON. 350ON.350 and ON. 400,ON.400, respectively. The Utilities continue to monitor developments and attend stakeholder consultations in Ontario.

The UtilitiesEGD and Union Gas utilize emissions data management processes and systems to help with the data capture and mandatory and voluntary reporting needs. Quantification methodologies and emission factors will continually be updated in the system as required. Each Utilityutility publicly reports its GHG emissionsemissions. Collectively, EGD and has developed internal procedures for more frequent monthly Cap and Trade related GHG reporting. Collectively, the UtilitiesUnion Gas continue to work with industry associations to refine quantification methodologies and emissions factors, as well as best management practices to minimize emissions. The Utilities plans to reduce emissions in 2018 are outlined in the Facility Abatement Plan within their respective Compliance Plans.

Cynthia L. Hansen was appointed Executive Vice President and President, Utilities and Power Operations, on February 27, 2017. Ms. Hansen is responsible for the overall leadership and operations of EGD and Union Gas, as well as Enbridge Gas New Brunswick Inc. and Gazifère. She also holds responsibility for the operations of our power generating assets, which currently include renewable energy investments in wind, solar, geothermal and hydroelectric, as well as waste heat recovery facilities and power transmission lines owned in whole or in part by us.

D. Guy Jarvis was appointed Executive Vice President and President, Liquids Pipelines and Major Projects on May 2, 2016.February 27, 2017. Mr. Jarvis has been President of our Liquids Pipelines group since March 1, 2014, with responsibility for all of our crude oil and liquids pipeline businesses across North America. Mr. Jarvis

previously held the title of Chief Commercial Officer for Liquids Pipelines, with responsibility for strategic

Byron C. Neiles was appointed Executive Vice President, Corporate Services on May 2, 2016. Mr. Neiles has oversight of our centralized capital and maintenance projects division, as well as Information Technology, Human Resources, Real Estate & Workplace Services, Supply Chain Management, Enterpriseand Safety, and Operational Reliability, and aviationEnvironment, Land & Right-of-Way groups. Mr. Neiles had previously held the role of Senior Vice President, Major Projects, Enterprise Safety and Operational Reliability, and had been Senior Vice President of Major Projects since November 2011, after joining our Major Projects group in April 2008.

William T. Yardley was named Executive Vice President and President, of Gas Transmission and Midstream on February 27, 2017.2017 coincident with the closing of the Merger Transaction. Mr. Yardley is also the President andof SEP. Prior to the closing of the Sponsored Vehicle buy-ins, Mr. Yardley was also the Chairman of the Board of SEP.SEP; he now continues to serve as a Manager on the Board of Managers. Mr. Yardley, based in Houston, was previously President of Spectra Energy’s United States Transmission and Storage business, leading the business development, project execution, operations and environment, health and safety efforts associated with Spectra Energy’s United States portfolio of assets.

Vern D. Yu was appointed Executive Vice President and Chief Development Officer on May 2, 2016. Mr. Yu leads our Corporate Development team, in drivingresponsible for the identification and execution of value enhancing growth opportunities while also establishingand managing capital allocation parameters and Enbridge’s portfolio mix. Mr. Yu also provides executive oversight to our Energy Services group, Tidal Energy. Previously, Mr. Yu served as Senior Vice President, Corporate Planning and Chief Development Officer. He has been the lead of our Corporate Development team since July 1, 2014.

Allen C. Capps is the Senior Vice President and Chief Accounting Officer of Enbridge. Mr. Capps is responsible for our accounting operations and financial reporting functions, including internal and external financial reports.reporting. Prior to assuming his current role on February 27, 2017, in 2017,connection with the closing of the Merger Transaction, Mr. Capps served as Vice President and Controller of Spectra Energy, where he was responsible for the financial accounting and reporting functions.

Our business is dependent upon information systems and other digital technologies for controlling our plants and pipelines, processing transactions and summarizing and reporting results of operations. The secure processing, maintenance and transmission of information is critical to our operations. A security breach of our network or systems, or the network or systems of our third-party vendors, could result in improper operation of our assets, potentially including delays in the delivery or availability of our customers’ products, contamination or degradation of the products we transport, store or distribute, or releases of hydrocarbon products for which we could be held liable. Furthermore, we and our third-party vendors collect and store sensitive data in the ordinary course of our business, including personal identification information of our employees as well as our proprietary business information and that of our customers, suppliers, investors and other stakeholders. We have a cyber-security controls framework in place which has been derived from the National Institute of Standards and Technology Cyber-security Framework and International Organization for Standardization 27001 standards. We monitor our control effectiveness in an increasing threat landscape and continuously take action to improve our security posture. We have implemented a 7X24 security operations center to monitor, detect and investigate any anomalous activity in our network together with an incident response process that we test on a monthly basis. We conduct independent cyber-security audits and penetration tests on a regular basis to test that our preventative and detective controls are working as designed. Despite our security measures, our information systems, or those of our vendors, may become the target of cyber-attacks (including hacking, viruses or acts of terrorism) or security breaches (including employee error, malfeasance or other