Opportunities North 08 Whitehorse, Yukon

October 2, 2008

TransCanadas Objectives Alaska Project

Early in-service

Largest investment opportunity in core business line and geographic footprint Utilize spare capacity on existing North American pipelines LNG market as alternative investment opportunity Serve In-State and other markets Increase market and supply diversity Growth investment opportunities

Encourage long-run basin development

Pipeline expansions can create virtuous circle

Pipeline expansions promote more exploration and drilling which, if successful, leads to more pipeline expansions

Equitable treatment for all customers

50-year successful track record of balancing interests

Initial and future Large and small

TransCanada

October 2, 2008

TransCanadas Credentials

Prudhoe Bay

Miles of Pipe in U.S. Compression Horsepower

TransCanada Total 36,500 12,000 5,370,000

Alaska Pipeline Project 1,715 750 in Alaska 750,000 265,000 in Alaska

Boundary BoundaryLake Lake

Throughput Volumes

15 bcf/d

4.5 bcf/d

1957/58 TransCanadas Mainline 1990s Expansion

Original build across Canada 2,300 miles

7,000 miles Completed within 0.6% of budget and on schedule

TransCanada Pipeline Proposed Alaska pipeline TransCanada Alberta System TransCanada-owned pipelines Other Gaspipelines Pipeline Other Natural natural gas Keystone pipeline

October 2, 2008

2008 2012 Keystone Pipe

4,070 miles New build in U.S. 2,675 miles

TransCanada

Alaska Pipeline Project

Alberta Hub is the most liquid market in North America TransCanadas Alberta System is the Alberta Hub Access to all North American markets coast-to-coast on TransCanadas existing pipelines By 2018, spare takeaway capacity sufficient for full Alaska volumes One-third of Alaska pipeline in-service as Prebuild moving 3 BCF/D LNG alternative to Valdez

TransCanada

October 2, 2008

Project Economics

Capital costs $26 billion (2007 $US excluding AFUDC)

Approximately $0.6 billion for Open Season and regulatory certification

Tolls $US 2.76/MMbtu in 2018 to the Alberta Hub

Levelized negotiated toll for 4.5 Bcf/d in nominal dollars, including fuel

TransCanada will offer equity opportunity to Shippers in the initial Open Season that subscribe for a threshold volume.

Based on information provided by the State and current TransCanada estimates

TransCanada October 2, 2008

Regulatory Structure
Alaska TransCanada Alaska Company, LLC will proceed under Alaska Natural Gas Pipeline Act of 2004 Canada Foothills Pipe Lines Ltd. will proceed under the Northern Pipeline Act (NPA) Canada/U.S. Treaty The pipeline will follow the route set out in the Treaty and the NPA

TransCanada

October 2, 2008

During Construction

Right of way and pipe being Lowered into trench

7 TransCanada October 2, 2008

Near Brandon, 1999 Construction

Before Construction

Right of way staked out prior to Clearing operation

Sampling marshland water quality

TransCanada

October 2, 2008

After Construction

Pipeline Air Patrol

Right of way after reclamation

TransCanada

October 2, 2008

Project Schedule

Aug 2008* AGIA License Issued

Jul 2010 Open Season Complete

Apr 2011 FERC Pre-filing Request

Oct 2012 FERC Filing

Jun 2014 FERC CPCN

Nov 2014 Project Sanction

Apr 2016 On-Site Construction

Apr 2018 Construction Complete

Sep 2018 Initial Gas

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

* AGIA license assumed to be issued in August 2008 now late November 2008

10

TransCanada

October 2, 2008

Current Status
Alaska legislative phase now completed AGIA August 1 Legislative final approval August 27 Governor Palin signed Bill Late November Effective date Project Kick-Off August 15 Time sensitive contracts let

Aerial photography Environmental planning Engineering planning

August/September Internal team planning

11

TransCanada

October 2, 2008

Open Season Phase

Project mobilization and planning Engineering

GTP pre-FEED Class 4 cost estimate and risk analysis Pipeline and facilities pre-FEED, Class 4 cost estimate and risk analysis FERC approval of Open Season Plan

Regulatory

12

TransCanada

October 2, 2008

Open Season Phase (Contd)

Commercial

In-State needs study Prepare Open Season plan Finalize tolls and commercial terms of service Conduct Open Season Alaska Canada D.C.

Stakeholder Engagement

13

TransCanada

October 2, 2008

Elements of a Successful Project

Attractive project economics

Natural gas prices are volatile and difficult to forecast Conventional Lower 48 and WCSB, LNG, shale and coalbed all competing for market share

Project supporters must focus on cost control and schedule Government and community support U.S. / Canada

Alaska / Yukon / B.C. / Alberta First Nations Other stakeholders

Commercial contracts with Shippers Long-term firm agreements Creditworthy parties

14

TransCanada

October 2, 2008

Key US Shale Gas Production History

15

TransCanada

October 2, 2008

US Coalbed Methane Production History

16

TransCanada

October 2, 2008

North American LNG Regasification Facilities Existing in Mid 2005

EVERETT (0.715 Bcf/d Cap.)

COVE POINT (1.0 Bcf/d Cap.)

ELBA ISLAND (0.44 Bcf/d Cap.) LAKE CHARLES (1.0 Bcf/d Cap.)

17

TransCanada

October 2, 2008

Existing and Likely LNG Facilities by 2011

Canaport 1.0 Bcf/d Northeast Gateway 0.4 Bcf/d

Existing LNG Facility Likely LNG Facility

Distrigas 0.7 Bcf/d Cove Point 1.8 Bcf/d

Costa Azul 1.0 Bcf/d Manzanillo 0.5 Bcf/d Altamira 0.7 Bcf/d

Elba Island 1.7 Bcf/d U.S. Gulf Coast Lake Charles 1.8 Gulf Gateway 0.4 Freeport 1.5 Sabine` 4.0 U.S. Gulf Coast Cameron 1.5 Golden Pass 2.0 Clean Energy 1.3

Bcf/d Bcf/d Bcf/d Bcf/d Bcf/d Bcf/d Bcf/d

18

TransCanada

October 2, 2008

Value to Yukon
Direct benefits

$2.9 billion in tax revenues during operations

Average of $3,300/person each year New fuel source for Yukon industry, electric power generation, residential and commercial Competitive transportation to market for Yukon natural gas supply Thousands of job opportunities Entrepreneurial business development

Natural gas access

Construction benefits

Key assumptions

Alaska Pipeline Project in-service by 2018 Project economics as per TransCanadas AGIA Application 4.5 Bcf/d delivered to Alberta Hub for 25 years

19

TransCanada

October 2, 2008

Summary
AGIA Bill approved Field work and project planning underway Majority of field work in the summer of 2009 Commercial, regulatory and stakeholder engagement commencing Target to conclude Open Season by summer 2010 Government and community support required for successful project Average $3,300/person each year in direct tax revenues to Yukon

20

TransCanada

October 2, 2008

Thank You