<SEC-DOCUMENT>0001193125-16-746502.txt : 20170105
<SEC-HEADER>0001193125-16-746502.hdr.sgml : 20170105
<ACCEPTANCE-DATETIME>20161025154902
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001193125-16-746502
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20161025

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ENBRIDGE INC
		CENTRAL INDEX KEY:			0000895728
		STANDARD INDUSTRIAL CLASSIFICATION:	PIPE LINES (NO NATURAL GAS) [4610]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			A0
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		200 425 - 1ST STREET SW
		CITY:			CALGARY
		STATE:			A0
		ZIP:			T2P 3L8
		BUSINESS PHONE:		403-231-3900

	MAIL ADDRESS:	
		STREET 1:		200 425 - 1ST STREET SW
		CITY:			CALGARY
		STATE:			A0
		ZIP:			T2P 3L8

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	IPL ENERGY INC
		DATE OF NAME CHANGE:	19940616

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	INTERPROVINCIAL PIPE LINE SYSTEM INC
		DATE OF NAME CHANGE:	19930108
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">[ENB Letterhead] </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right">October 25, 2016 </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>VIA EDGAR </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Loan Lauren P. Nguyen </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Legal Branch Chief, Office of Natural
Resources </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">United States Securities and Exchange Commission </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">100 F Street, N.E. </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Washington, D.C. 20549 </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top"><B>Re:</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Enbridge Inc.</B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Registration
Statement on Form F-4</B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Filed September&nbsp;23, 2016</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman"><B>File No.&nbsp;333-213764</B></P></TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Dear Ms.&nbsp;Nguyen: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">On
behalf of Enbridge Inc. (the &#147;<U>Company</U>&#148; or &#147;<U>Enbridge</U>&#148;), and in response to the comments of the staff (the &#147;<U>Staff</U>&#148;) of the Securities and Exchange Commission (the &#147;<U>Commission</U>&#148;) to the
Company&#146;s registration statement on <FONT STYLE="white-space:nowrap">Form&nbsp;F-4</FONT> filed with the Commission on September&nbsp;23, 2016 (the &#147;<U>Registration Statement</U>&#148;) contained in your letter dated October&nbsp;17, 2016
(the &#147;<U>Comment Letter</U>&#148;), we submit this letter containing the Company&#146;s responses to the Comment Letter. The responses set forth in this letter are numbered to correspond to the numbered comments in the Comment Letter. For your
convenience, we have set out the text of the comments from the Comment Letter in bold text followed by our response. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">In connection with this letter, we
are filing an amendment to the Registration Statement (&#147;<U>Amendment No.&nbsp;1</U>&#148;) on the date hereof. Page numbers referenced in the responses refer to page numbers in Amendment No.&nbsp;1. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>The Merger Proposal, page 39 </U></B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Background of
the Merger, page 40 </U></B></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>1.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>We note the disclosure on page&nbsp;40 that Enbridge&#146;s senior management had considered a business combination transaction with Spectra Energy Corp. periodically at least in the last 18&nbsp;months. Please
revise this section to clarify whether the board of Enbridge or Spectra Energy considered transaction alternatives with other third parties. </B></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">In response to the Staff&#146;s comment, the Company has revised the disclosure on page&nbsp;40. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">1 </P>


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<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>2.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>At several points in the background section, you indicate that executives of Enbridge Inc. and Spectra Energy Corp. discussed &#147;potential synergies&#148; that could result from a proposed merger. We also note the
synergies listed on page&nbsp;52, which serve as one of the basis for the Spectra Energy board to approve the merger transaction. Please clarify the synergies considered by Enbridge and Spectra Energy, and their impact on discussions regarding the
transaction. </B></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">In response to the Staff&#146;s comment, the Company has revised the disclosure on pages 43 47 and 50. </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>3.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>We note that on September&nbsp;4 and 5, 2016, members of Enbridge&#146;s management reviewed the feedback of the credit rating agencies and that on September&nbsp;5, &#147;Enbridge&#146;s management received and
shared favorable feedback from the credit rating agencies regarding their view of Enbridge&#146;s credit rating upon the closing of the proposed transaction.&#148; Please describe this feedback and clarify whether it was a factor the Enbridge board
considered in approving the merger transaction. </B></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">In connection with its evaluation of the merger, Enbridge considered the
potential impact of the merger on its credit ratings. As part of this consideration, the senior management of each of Enbridge and Spectra Energy Corp (&#147;<U>Spectra Energy</U>&#148;) participated in meetings with credit rating agencies, during
which they discussed the proposed transaction, <I>pro forma</I> corporate, financial and governance structures and strengths of the combined company. Following these meetings, Enbridge management received favorable feedback from the credit rating
agencies indicating that the announcement of an all-stock merger with Spectra Energy would not have a negative impact on Enbridge&#146;s credit ratings. In evaluating the merger, the Enbridge board of directors considered the feedback from the
credit rating agencies as a positive factor in support of approving the merger. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">In response to the Staff&#146;s comment, the Company has
revised the disclosure on pages&nbsp;47 and 50. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Board of Directors and Management of Enbridge after the Merger, page 48 </U></B></P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>4.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Please provide the disclosure required under Item&nbsp;18(a)(7) of <FONT STYLE="white-space:nowrap">Form&nbsp;F-4</FONT> for each individual who is to serve as a director or executive officer of the combined entity.
</B></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">The Company acknowledges the Staff&#146;s comment and respectfully submits that Item&nbsp;18(a)(7) of <FONT
STYLE="white-space:nowrap">Form&nbsp;F-4</FONT> provides that a registrant or acquired company that meets the requirements for use of <FONT STYLE="white-space:nowrap">Form&nbsp;F-3</FONT> may incorporate the requested information by reference.
Enbridge meets the requirements for the use of <FONT STYLE="white-space:nowrap">Form&nbsp;F-3</FONT> and Spectra Energy meets the requirements for the use of equivalent <FONT STYLE="white-space:nowrap">Form&nbsp;S-3.</FONT> </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">At the date of this letter, Enbridge and Spectra Energy have agreed that Mr.&nbsp;Al Monaco will serve as President and Chief Executive
Officer of the combined company and Mr.&nbsp;Gregory&nbsp;L. Ebel will serve as non-executive Chairman of the board of directors of the combined company. The information required by Item&nbsp;18(a)(7) of
<FONT STYLE="white-space:nowrap">Form&nbsp;F-4</FONT> in relation to </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">2 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">
Mr.&nbsp;Monaco and Mr.&nbsp;Ebel has been incorporated by reference into the Registration Statement. In response to the Staff&#146;s comment, the Company has removed the reference to
&#147;biographical information&#148; in its disclosure on page&nbsp;49 to clarify that not only biographical information is incorporated by reference, but also other information for Mr.&nbsp;Monaco and Mr.&nbsp;Ebel (such as information relating to
executive compensation for the most recent fiscal year and share ownership) is incorporated by reference. The remaining members of the board of directors of Enbridge following completion of the merger have not yet been determined. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">At the date of this letter, Enbridge and Spectra Energy have agreed that Mr.&nbsp;Guy Jarvis, Mr.&nbsp;Bill Yardley and Mr.&nbsp;John Whelen
will serve as executive officers of the combined company. In response to the Staff&#146;s comment, the Company has revised its disclosure on page&nbsp;[49] to clarify that information required by Item&nbsp;18(a)(7) of
<FONT STYLE="white-space:nowrap">Form&nbsp;F-4</FONT> in relation to Mr.&nbsp;Jarvis and Mr.&nbsp;Whelen is incorporated by reference. In response to the Staff&#146;s comment, the Company has revised its disclosure on page&nbsp;49 to include the
information required by 18(a)(7) of <FONT STYLE="white-space:nowrap">Form&nbsp;F-4</FONT> for Mr.&nbsp;Yardley. Mr.&nbsp;Yardley was not a named executive officer of Spectra Energy for the most recent fiscal year and therefore the Company
respectfully submits that the information required by Item&nbsp;18(a)(7)(ii) of <FONT STYLE="white-space:nowrap">Form&nbsp;F-4</FONT> is not required for Mr.&nbsp;Yardley. The remaining members of the executive management team of the combined
company following completion of the merger have not yet been determined. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">The Company respectfully advises the Staff that no disclosure is
included in response to Item&nbsp;18(a)(7)(iii) because there were no transactions requiring such disclosure. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Enbridge&#146;s Reasons for the
Merger, page 49 </U></B></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>5.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>You indicate that among the factors considered by the Enbridge board in making its determination to support the merger was the belief that the economic value of the consideration was &#147;appropriate and reasonable,
and consistent with market precedents.&#148; However, you do not discuss any precedent market transactions. Please clarify this statement and advise whether the Enbridge board considered comparable transaction precedents in its determination to
approve the merger transaction. </B></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">In response to the Staff&#146;s comment, the Company has revised its disclosure on
page&nbsp;50. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Opinion of Spectra Energy&#146;s Financial Advisors, page 55 </U></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Opinion of BMOCM, page 59 </U></B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Selected Public
Companies Analyses, page 59 </U></B></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>6.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Please revise to provide additional details to describe the criteria BMOCM used to select the companies used in the Selected Public Companies Analyses described on pages&nbsp;59 and 60. Please also revise to show the
enterprise values for each comparable company. Additionally, please make corresponding revisions to the Selected Public Companies Analyses prepared by Citi on page&nbsp;69. </B></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">In response to the Staff&#146;s comment, the Company has revised the disclosure on pages&nbsp;61, 70 and 76. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">3 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Opinion of Citigroup Global Markets, page 65 </U></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Financial Analyses, page 68 </U></B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Selected Public
Companies Analyses, page 69 </U></B></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>7.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Based on the supplemental information provided to us, we note certain apparent inconsistencies in the presentation of Enbridge selected midstream companies&#146; comparable data, including, among other items, the
estimated dividend yields for calendar years 2016, 2017, and 2018. Please explain the reasons for such apparent discrepancies. </B></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">The Company assumes that the Staff&#146;s comment refers to the low, high and median multiples for calendar years 2016, 2017 and 2018 observed
by Citi for the Enbridge selected midstream companies. The Company does not believe that the disclosure contains inconsistencies with the supplemental information provided to the Staff. However, in response to the Staff&#146;s comment, the Company
has clarified the disclosure on pages&nbsp;71, 73 and 75. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>8.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>We note that Citi also reviewed selected precedent midstream transactions. Please tell us why the summary for this analysis was not included in the registration statement. </B></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">The Company supplementally advises the Staff that the data shown in the supplemental materials provided to the Staff with respect to selected
precedent midstream transactions was not included in the Registration Statement given that such data was not utilized to derive an implied per share equity value reference range for the Company and, accordingly, such data did not form a basis for
Citi&#146;s opinion but rather was shown for informational purposes as noted in such materials. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Unaudited Pro Forma Condensed Consolidated
Financial Statements, page 139 </U></B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Notes to the Pro Forma Condensed Consolidated Financial Statements, page 143 </U></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Note 3. Pro Forma Assumptions and Adjustments, page 144 </U></B></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>9.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Please provide a qualitative description of the factors that make up the goodwill to be recognized in the merger. Refer to FASB <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap"><FONT
STYLE="white-space:nowrap">ASC&nbsp;805-30-50-1a.</FONT></FONT></FONT> </B></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">In response to the Staff&#146;s comment, the
Company has revised the disclosure on page&nbsp;147. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>10.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Disclosure on page&nbsp;146 indicates that approximately 85% of Spectra Energy&#146;s assets are in rate-regulated entities and that no fair value adjustments to property, plant and equipment and intangible assets
have been recognized. Please expand your disclosure to describe the nature of these rate-regulated entities and their respective assets. </B></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">In response to the Staff&#146;s comment, the Company has expanded its disclosure on page&nbsp;148. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">4 </P>


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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>11.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>In connection with the above comment, please tell us more about how you concluded the carrying value of Spectra Energy&#146;s property, plant and equipment and intangible assets are representative of their fair value
in accordance with the principles of FASB ASC&nbsp;820. In your response, describe how you considered a market participant&#146;s view of fair value of the assets in the rate-regulated entities and cite the authoritative accounting guidance you
relied upon in your analysis. Also, please address how you measured the remaining 15% of Spectra Energy&#146;s assets that are not part of the rate-regulated entities. </B></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">The Company has applied the valuation methodologies described in ASC&nbsp;820, Fair Value, to the regulated assets, using a market participant
perspective. <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">ASC&nbsp;820-10-35-10B</FONT></FONT></FONT> describes factors that should be considered in measuring the fair value of a nonfinancial
asset, indicating that the highest and best use of the asset should be based on potential uses that are &#147;physically possible,&#148; &#147;legally permissible,&#148; and &#147;financially feasible.&#148;&nbsp;The Company considered the use of
Spectra Energy&#146;s assets outside of regulation to be neither &#147;legally permissible&#148; nor &#147;financially feasible&#148; because of the public&#146;s interest in the use and disposition and the resultant impact of regulation on such
assets. Given the regulated nature of and fixed return associated with the regulated assets, it is the Company&#146;s view that the carrying value is reflective of the amount a market participant would be willing to pay for the assets in an
arm&#146;s length transaction. The Company&#146;s rationale for this practice is based on the notion that rates approved by regulators allow for the recovery of approved costs, including a regulated return, and that any excess of the purchase price
over the book value of the net assets acquired will not be included in the rate base in future rate proceedings.&nbsp;The determination of revenues and earnings for Spectra Energy&#146;s regulated entities is based on regulated rates of return that
are applied to historic values. The Company also considered that a disposition of the regulated assets by sale would be subject to the jurisdiction of U.S. and Canadian ratemaking regulatory commissions and such commissions would require a gain (if
any) to be returned to ratepayers. This further supports that the Company is only entitled to the carrying value. Thus, the fair value of Spectra Energy&#146;s tangible and intangible assets and liabilities subject to rate-making is approximately
their regulatory value. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">The valuation methodology applied to Spectra Energy&#146;s regulated assets is consistent with that used by other
regulated entities, such as gas and transmission entities that are subject to ASC&nbsp;980, Regulated Operations, and the Company believes that ASC&nbsp;805, Business Combinations, and ASC&nbsp;820, Fair Value, should be applied consistently to all
rate regulated entities that are required to apply ASC&nbsp;980. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">In preparing the unaudited pro forma condensed consolidated financial
statements for the Registration Statement, the Company estimated the fair value of the remaining 15% of Spectra Energy&#146;s assets as approximately their carrying value.&nbsp;The Company&#146;s best estimate of fair value considered an income
approach, an asset approach and a market approach in addition to comparing a recent acquisition for Spectra Energy&#146;s non-</P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">5 </P>


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regulated business where the Company believes that the purchase price paid for the assets best reflects current economics of owning and operating the assets under current and reasonably
foreseeable market conditions.</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">The Company has engaged a third-party appraiser to provide an estimate of the fair market value of Spectra
Energy&#146;s net assets; however, due to the fact that the merger has not yet closed, the Company has not completed the final valuation. The Company believes based on the information available to date, the estimated purchase price allocation
represents Enbridge management&#146;s best estimate of the fair market value of Spectra Energy&#146;s net assets.&nbsp;The final purchase price allocation will be updated upon the completion of the valuation work. </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>12.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>We note that pro forma adjustment&nbsp;3b includes a regulatory offset of $803&nbsp;million recorded in deferred amounts and other assets for the portion of the fair value adjustment to long-term debt related to
rate-regulated entities. Please tell us and expand your disclosure to describe the factors that support regulatory offset. </B></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">The Company respectfully advises the Staff that the regulatory offset relates to long-term debt that is held within Spectra Energy&#146;s
regulated operations and would form part of the regulated ratemaking process. The Company views the regulatory offset upon consummation of the acquisition as a proxy for the regulatory asset that would be recorded in the event such debt was
extinguished at an amount higher than the carrying value. The Company considered the authorized rate structure for the rate treatment of debt and interest costs by the Federal Energy Regulatory Commission, the Ontario Energy Board and the National
Energy Board which are based on the actual cost of the regulated entities borrowings in computing the overall rate of return to support that the premium paid upon extinguishment is probable of recovery and therefore giving rise to the regulatory
offset. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">In response to the Staff&#146;s comment, the Company has expanded its disclosure on page&nbsp;148. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We hope that the foregoing, and the revisions to the Registration Statement, have been responsive to the Staff&#146;s comments. Please direct any comments or
questions regarding this letter to Joseph Frumkin at (212)&nbsp;558&nbsp;4101 or by email at frumkinj@sullcrom.com or George Sampas at (212)&nbsp;558&nbsp;4945 or by email at sampasg@sullcrom.com. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; margin-left:47%; font-size:10pt; font-family:Times New Roman">Sincerely, </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:47%; font-size:10pt; font-family:Times New Roman">/s/ Tyler
Robinson </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:47%; font-size:10pt; font-family:Times New Roman">Tyler Robinson </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:47%; font-size:10pt; font-family:Times New Roman">Vice President&nbsp;&amp; Corporate Secretary </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:47%; font-size:10pt; font-family:Times New Roman">Enbridge Inc. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top">cc:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Wei Lu, Staff Accountant</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Jason Langford,
Staff Attorney</P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">(Securities and Exchange Commission)</P></TD></TR>
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 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">6 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Joseph Frumkin </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">George Sampas </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">(Sullivan&nbsp;&amp; Cromwell) </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Daniel A. Neff </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">David A. Katz </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Gregory E. Ostling </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">(Wachtell, Lipton, Rosen&nbsp;&amp; Katz)
</P>
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