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A Look at Enbridge Energy Partners’ Long-Term Contracts

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Liquids Pipelines contracts

Enbridge Energy Partners’ (EEP) Liquids segment’s revenues are backed by low-risk, long-term contracts. The remaining contract lives of the segment’s cost-of-service agreements for the Lakehead system range from 20 to 30 years.

The above chart shows the remaining contract life for EEP’s Liquids Pipelines segment. The Lakehead system’s base toll, as well as the pipeline toll on the segment’s North Dakota and Mid-Continent systems, is indexed to the PPI (producer price index) plus 1.2%. The prior index adjustment of PPI plus 2.7% expired on June 30, 2016.

Next, let’s analyze Enbridge Energy Partners’ leverage position.

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