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CT-01/ 008' THE COMPETITION TRIBUNAL IN THE MATTER OF an application by the Commissioner of Competition for a Consent Order pursuant to sections 79 and 105 of the Competition Act, R.S.C. 1985, c. C-34 as amended;

AND IN THE MATTER OF certain practices of anti-competitive acts by Enbridge Services Inc. ("ESI") within certain markets in the province of Ontario;

AND IN THE MATTER OF an abuse of dominant 'l"~~':t:'.=-------­ the supply of conventional or power vented natural g s fu..,~!b!?dH"EVITW~J rnmmua water heaters not used for commercial purpos heaters") and related services within certain mark ~s in the province of Ontario. B E T w E E N: THE COMMISSIONER OF COMPETITIOt on;::~· ~.~~-""~kc12~1 -AND-ENBRIDGE SERVICES INC.

AFFIDAVIT OF MARK RONAYNE I, Mark Ronayne, of the City of Ottawa, in the Province of Ontario, MAKE OATH AND SAY: 1. I am a Senior Competition Law Officer with the Civil Matters Branch, Competition Bureau, Industry Canada and an authorized representative of the Applicant, the Commissioner of Competition (the "Commissioner").

('watefil i.::::s Ui c:·:'.:~iii'.'~!~lCE ~ J ~- DEC 18 2001 ~ . Applicant Respondent

- 2-2. In this capacity, I have been engaged in a review of certain practices of anti-competitive acts by Enbridge Services Inc. (“ESI”) (the “Respondent”) within certain markets in the province of Ontario. As such, I have knowledge of the matters hereto deposed except that which is obtained upon information and belief and, where so stated, I verily believe such information to be true.

3. I have been involved in the conduct and management of the Inquiry described in the Statement of Grounds and Material Facts (the “Statement”) filed in support of this application by the Applicant in this matter.

4. I have analysed the conduct of the Respondent by examining such relevant factors as the product and geographic markets, market shares and barriers to entry in relation to certain markets in the province of Ontario for the supply of conventional or power vented natural gas fuelled water heaters not used for commercial purposes (“water heaters”) and related services.

5. In addition, I have reviewed information obtained on a voluntary basis from the parties and other industry participants and independent sources. I have also reviewed the research and analysis undertaken by economic and industry experts retained by the Applicant to assist in the Inquiry. As such, I have knowledge of the information contained in the Statement and I believe that information to be true.

- 3-6. The Statement provides a competitive analysis of the Respondent’s activities with respect to the supply of water heaters and related services in relation to certain markets in the province of Ontario. The Statement sets out the Commissioner’s conclusion that ESI has substantial control over the relevant markets for the supply of water heaters and related services in certain markets in Ontario and has engaged in a practice of anti-competitive acts which have resulted in a substantial lessening or prevention of competition in the relevant markets.

7. I further believe that the proposed remedies to be put in place pursuant to the Draft Consent Order will be sufficient to remove the substantial lessening or prevention of competition in the relevant markets by circumscribing certain behaviour of the Respondent.

SWORN before me at the City of Hull, in the Province of Quebec on the day of December, 2001. _______________________ Mark Ronayne

__________________________ Commissioner of Oaths for taking Affidavits

CT-01/ THE COMPETITION TRIBUNAL IN THE MATTER OF an application by the Commissioner of Competition for a Consent Order pursuant to sections 79 and 105 of the Competition Act, R.S.C. 1985, c. C-34 as amended;

AND IN THE MATTER OF certain practices of anti-competitive acts by Enbridge Services Inc. (“ESI”) within certain markets in the province of Ontario;

AND IN THE MATTER OF an abuse of dominant position in the supply of conventional or power vented natural gas fuelled water heaters not used for commercial purposes (“water heaters”) and related services within certain markets in the province of Ontario.

B E T W E E N: THE COMMISSIONER OF COMPETITION Applicant - and -ENBRIDGE SERVICES INC. Respondent _________________________________________ AFFIDAVIT OF MARK RONAYNE

JOSEPHINE A.L. PALUMBO Department of Justice Competition Law Division Place du Portage, Phase 1 50 Victoria Street, 22 nd Floor Hull, Quebec K1A OC9

Tel: (819) 997-3325 Fax:(819) 953-9267

Counsel to the Commissioner of Competition

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