File 4750-A000-11
13 December 2001

ERRATUM

NATIONAL ENERGY BOARD LETTER
dated 6 December 2001

By Facsimile

To: Parties Named in the Attached Distribution List

Re: Rate of Return on Common Equity (ROE) for 2002
Group 1 Pipeline Companies

Please note that an administrative error in the first paragraph in the French version of the National Energy Board's (the Board) letter dated 6 December 2001, which approved the Rate of Return on Common Equity (ROE) for 2002 for Group 1 Pipeline Companies, is corrected as follows:

"Conformément au mécanisme de rajustement du RCO approuvé dans le cadre de la décision sur le coût du capital des sociétés pipelinières (RH-2-94), et révisé le 14 mars 1997 pour éliminer l'arrondissement des chiffres, l'Office national de l'énergie (l'Office) a autorisé un taux de rendement du capital-actions ordinaire de 9,53 % pour l'année 2002."

Yours truly,

Michel L. Mantha
Secretary

Attachment

Distribution List
Attachment to Board Letter
dated 13 December 2001

File 4750-A000-11
6 December 2001

By Facsimile

To: Parties Named in the Attached Distribution List

Re: Rate of Return on Common Equity (ROE) for 2002

Pursuant to the ROE adjustment mechanism approved in the Multi-Pipeline Cost of Capital Decision (RH-2-94), revised on 14 March 1997 to eliminate rounding, the Board has approved a rate of return on common equity of 9.53 percent for the year 2002.

In arriving at its decision, the National Energy Board (the Board) relied upon a 10-year Government of Canada forecast bond yield of 5.15 percent (November 2001 Consensus Forecasts). To this forecast, the Board added 48 basis points, which was the average actual yield differential between the 10- and 30-year Government of Canada bonds observed during the month of October 2001(Source: National Post). The above calculation produced a forecast long-term (30-year) Government of Canada bond yield of 5.63 percent for 2002, which is 10 basis points lower than the 5.73 percent forecast yield relied upon in the ROE calculation for 2001. The 10 basis point yield differential between the current and previous forecasts was multiplied by 0.75, producing a downward adjustment of 8 basis points to the 2001 approved ROE of 9.61 percent. Therefore, the ROE for 2002 is 9.53 percent.

Companies are directed to serve forthwith a copy of this letter on their shippers and interested parties.

Yours truly,

Michel L. Mantha
Secretary

Attachment

Distribution List
Attachment to Board Letter
dated 6 December 2001