Company: ENBSF
Filing Date: 2025-06-27
Form Type: 11-K
Source: 0001193125-25-149184
Chunk: 8

Company: ENBRIDGE INC
Filing Date: 2025-06-27
Form: 11-K
Chunk 8
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 in the common stock funds or stable value trust funds and registered investment
funds are either paid from the fund balance or deducted from income earned on a daily basis, and are not separately reflected. Consequently, management fees and operating expenses are reflected as a reduction of investment return for these
investments.

Notes Receivable from Participants

Notes receivable from participants represent participant loans that are recorded at their unpaid principal balance plus any accrued but unpaid interest.
Interest income on notes receivable from participants is recorded when earned. If a participant ceases to make loan repayments and Enbridge Employee Services, Inc. (the Plan Administrator) deems the participant loan to be a distribution, the
participant loan balance is reduced and a benefit payment is recorded.

Benefit Payments

Benefit payments to participants are recorded upon distribution.

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3. EXEMPT PARTY-IN-INTERESTTRANSACTIONS

Transactions with the Trustees and the
funds they manage qualify as party-in-interest transactions. Investment management fees and operating fees paid by the Plan were included as a reduction of the return
earned on each fund. Administrative fees paid by the Plan were $474,000 for the year ended December 31, 2024.

Transactions in shares of Enbridge
common stock qualify as exempt party-in-interest transactions under ERISA. As at December 31, 2024 and 2023, the Plan held 9.07 million and 9.00 million
shares, respectively, of Enbridge common stock with a cost basis of $304,277,000 and $294,784,000, respectively. During the year ended December 31, 2024, the Plan recorded related dividend income of $23,976,000.

Additionally, the Plan maintains participant loans (Note 1).

4. FEDERAL INCOME TAX STATUS

The Internal Revenue
Service (IRS) has determined and informed the Company by a letter dated August 13, 2020 that the Plan is qualified and the related trust is exempt from federal income tax under the provisions of Sections 401(a) and 501(a), respectively, of the
IRC. Although the Plan has been amended since receiving this determination letter, the current design and operation of the Plan is considered by management and legal counsel to be in compliance with the applicable IRS exemption requirements.
Accordingly, no provision for income taxes has been recognized in the Plan’s financial statements.

US GAAP requires Plan management to evaluate
tax positions taken by the Plan and recognize a tax liability (or asset)