History

In connection with the deregulation of the Ontario natural gas industry in 1999, Enbridge Gas Distribution Inc. transferred the non-gas retail sales and service components of its business, which included the water heater rental program, to Enbridge Services Inc.

In May 2002, Centrica Canada Limited (now Direct Energy Marketing Limited ("Direct Energy") acquired Enbridge Services Inc. (now Direct Energy) and its Canadian home and business services operations.

In December 2002, The Consumers' Waterheater Income Fund (now EnerCare Inc. ("EnerCare") completed its initial public offering and purchased the water heaters and other portfolio assets held by Direct Energy and entered into servicing and origination agreements with Direct Energy.

Approximately 92% of the rental portfolio is subject to a Co-ownership Agreement with Direct Energy, under which Direct Energy and its contractors and independent franchisees service the rental portfolio assets and receive 35% of the related rental revenues. EnerCare earns the remaining 65% of the rental revenues and other payments. For the remaining 8% of the rental portfolio, EnerCare earns the full revenues and incurs the operating costs to service those assets, and subcontracts with a number of entities, including Direct Energy, to service the assets, generally on a fee-for-service basis. The rental portfolio is located in the Province of Ontario.

In August 2008, the Fund acquired Stratacon Inc., a sub-metering business in multi-residential rental apartment buildings and condominiums. In October 2010, the Fund acquired Enbridge Electrical Connections Inc., (now EnerCare Connections Inc.) also a sub-metering business focused on sub-metering in condominiums.

On January 1, 2011, The Consumers' Waterheater Income Fund converted to a corporation (EnerCare Inc.).