Enbridge's Restart Plan for Line 6B Receives Approval
Enbridge Energy Partners (EEP is 27% owned by Enbridge) announced that it received approval from the U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration (PHMSA) for the restart plan for Line 6B, which suffered an oil spill in late July near Marshall, Michigan. The approval outlines the additional required steps for the company to complete prior to the PHMSA approving Line 6B's return to service. EEP anticipates that it will meet the restart plan's requirements and be in a position to restart Line 6B on September 27, 2010. For further details, please refer to our SPARC dated September 22, 2010. Enbridge's shares are ranked Outperform, Average Risk.

Enbridge's Cost Estimate for Line 6A Spill and Lawsuit
Enbridge Energy Partners filed an 8-K which disclosed that the company expects Line 6A spill costs of US$10 million to US$15 million, net of insurance recoveries (gross costs before insurance of US$40 million to US$60 million). After accounting for Enbridge's 27% interest in EEP and the amounts being pre-tax, the impact on Enbridge is not expected to be material. EEP disclosed that a lawsuit has been filed on behalf of EEP against the general partner, Enbridge, stating that it breached its fiduciary duties with respect to the spill on Line 6B. For further details, please refer to our SPARC dated September 22, 2010.

Eoin Treacy's view For yield hungry investors the pipeline sector has long offered attractive compensation due to its reliable cash flow and long-term contracts. A number of these companies also appeared in a review of Canadian Dividend Aristocrats on September 16th which may be of interest to subscribers. http://www.fullermoney.com/x/default.html?mc=y&id=1995&schtxt=aristocrats

Enbridge Energy Partners is a master limited partnership so it pays dividends monthly and currently yields 7.27%. It has rallied impressively from the late 2008 lows and is now testing the 2007 highs near $60. While the yield on this reliable dividend payer would be maximised by buying on significant pullbacks, a sustained move below $50 would be required to question scope for continued higher to lateral ranging. Enbridge listed in Canada yields 3.15% but makes up for the lower payout with stronger capital appreciation. It posted a new closing high this week and a sustained move below C$48 would be required to question scope for further upside.

TransCanada remains in a relatively consistent uptrend defined by a progression of higher reaction lows and yields 4.15%. A sustained move below the 200-day MA, currently in the region of C$36 would be required to question scope for further upside.

ShawCor Ltd. yields 0.97% and has been ranging mostly below C$30 for a year. It rallied emphatically this week to break upwards and a countermanding downward dynamic would be required to question scope for further upside.

Fort Chicago Energy Partners is an income trust yielding more than 8%. It has rallied impressively from its 2008 lows and is currently testing the psychological C$12 level. A sustained move below C$11 would be required to question potential for further upside.

Inter Pipeline Fund is another income trust and yields 6.60%. Prices have more than doubled from the 2008 low and hit another new high this week. A sustained move below C$12.75 would be required to question scope for further upside.

Pembina Pipeline Income Trust yields 7.55% and broke successfully above C$18 in August. It is now somewhat overextended relative to the 200-day MA but a sustained move back below C$18 would be required to question medium-term upside potential.