To: Lorne Larson who wrote (4677 ) 11/3/2002 11:53:55 AM From: trustmanic Respond to of 11633 Company Name : The Consumers' Waterheater Income Fund Company Profile Filing Date : 10/30/2002 Offering : TBD Price : $10.00 per Unit Closing Date : mid-December 2002 Exchange : TSX Eligibility : British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador, Yukon, Nunavut, Northwest Territories Underwriters : Scotia Capital Inc., CIBC World Markets Inc., RBC Dominion Securities Inc., TD Securities Inc., BMO Nesbitt Burns Inc., National Bank Financial Inc. Associations : Issuer's Law Firm : Torys Underwriter's Law Firm : Blake, Cassels & Graydon LLP Auditor : PricewaterhouseCoopers LLP Transfer Agent : Business Description : The Consumers' Waterheater Income Fund is an unincorporated open-ended trust established under the laws of Ontario to hold, indirectly, ownership of all Installed Water Heaters and Other Portfolio Assets leased by Enbridge Services Inc. ("ESI") to customers residing primarily in the Province of Ontario. The Fund, indirectly, will receive a portion of rental charges and other payments made by customers The Fund has received a preliminary stability rating on the Units from S&P of SR-2. The Fund has also received a preliminary rating on the Proposed MTNs of AAA from S&P. The Fund's policy is to distribute 100% of its Distributable Cash to Unitholders, payable monthly. Historically, rental payments under the Custodial Rental Contracts, net of maintenance and capital expenditures, have provided a stable stream of revenue. The portfolio of Existing Water Heaters had its beginnings in the late 1950's. As at July 31, 2002, ESI rented approximately 1.25 million Water Heaters to customers in Ontario representing approximately 83% of the natural gas users in EGD's gas distribution territory. ESI also expects that in 2002 it will supply rental Water Heaters in approximately 85% of newly constructed single family homes within that territory. Of these 1.25 million Existing Water Heaters, approximately 39% were installed between 1997 and July 31, 2002. ESI's current customer and infrastructure base is located principally in the Greater Toronto Area, Mississauga, Barrie, Durham, the Niagara Region, Ottawa and the Ottawa valley, Kitchener, Halton, London, Hamilton, Caledon and Northumberland. Currently, approximately 40% of the service and installation of Water Heaters is carried out by ESI's seven independent franchisees and their subcontractors, with the balance carried out by ESI and its subcontractors.