TransCanada’s Proposed Groundbirch Mainline

(Cypress and Aitken Creek Sections) Pipeline Project

September 2011

TransCanadaIn business to deliver

.57,000 km of wholly ownednatural gas pipeline

•Interests in an additional11,500 km of natural gaspipeline

.250 Bcf of regulated naturalgas storage capacity

•Unparalleled connectionsfrom traditional and emergingbasins to growing markets

.Average daily volume ofapproximately 14 Bcf

•Keystone oil pipeline*1.1 million BbI/d

* Phases 1 and 2 in operation,Phases 3 and 4 in development

TransCanada Assets

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Natural Gas Pipeline

Natural Gas Pipeline (Under Construction)

Natural Gas Pipeline (In Development)

Natural Gas Pipeline (Proposed)

Oil Pipeline

Oil Pipeline (Under Construction)

Oil Pipeline (In Development)

Gas Storage

Tamazunchale

—TransCanadaGuadalajara,/

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TransCanada — Alberta and NEBC

ProposedGroundbirchMainline(Cypress andAitken CreekSections)

Purpose:

To meet producerrequests fortransportation ofsweet natural gasfrom northeastBritish Columbia

TransCanada

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TransCanada’s Proposed Groundbirch MainlineProject: Cypress and Aitken Creek Sections

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Aitken Creek Section

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—— Blueberry RiverI First Nations

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S eatton Provcial rk

Charlie Lake Praancia’Rerk- ) s

FOrtSt. JohnCypress Section irayiora i

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Hudson’s Hope

Saturn Receipt

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- Mo1’cr?,’1.ake Fir Nations_-_-- Groundbirch Receipt- -

Cypress Section• Evaluating routing options

• Proposed to extend from theapproved Groundbirch MainlineSaturn Section and terminateapprox 94 km NW of Fort St.John

• May range from approx 143 kmto 190 km of up to 42 inchdiameter pipe

Aitken Creek Section• Proposed to extend from a tie-in

point on the proposed CypressSection and terminate approx100 km NW of Fort St. John

• Approx 73 km of up to 36 inchdiameter pipe

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Project Schedule

Timeline Activity

Began stakeholder and Aboriginal engagement

Began survey and field studiesQ2 2011

Began environmental and technical analysis

Expect to submit an application to the NationalQ2 2012

Energy Board

Pending regulatory approval, anticipate toQ3/Q4 2013

begin construction

Q4 2014 IQi 2015 Targeted to have facilities in-service

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Stakeholder Engagement Commitment

TransCanada’s core values of Integrity, Collaboration,Responsibility and Innovation are at heart of our commitment tostakeholder engagement

We strive to engage stakeholders early and often to. ensure we deliver value in a socially and environmentally

responsible manner• assist us in reaching better quality business decisions

TransCanada6

Stakeholder Engagement Activities:Six Month Outlook

• May - September 2011: Preliminary meetings with variousstakeholders and Aboriginal communities; council presentations

• October — December 2011: Distribution of information packages

• January — February 2012: Council presentations; open houses incommunities affected by the route; one-on-one meetings and/orpresentations as requested; ads in local newspapers

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Community Benefits by Example

Community Investment - since 2006 — approx $350,000

— a — a — • — a — a — a — a — a — a — • — a — a — a — a — a — a — a — a — a —

Groundbirch Mainline Facility Facts:• 60km of 36 inch diameter pipeline• Construction cost - $36M• 1 construction season (summer-fall)• In-Service — November 2010

Associated Benefits:• Average headcount during construction — 200 people• Percentage of local hiring — 50% (20% aboriginal)• Spend during construction

• Aboriginal business spend - $6.7M• Local goods/services - $3.8M

• Property taxes• 2011 — approx $11OK• 2012 - estimated to be approx $1.2M

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Community Benefits Continue...

Groundbirch Mainline (Saturn Section)• recently approved by the Nallonal Energy Board• 24km of 36 inch diameter pipeline• 1 construction season (summer-fall)• Targeted in-service — Dec 2011

Groundbirch Mainline (Cypress and Aitken Creek Section)• proposing >200km of 36 inch and 42 inch diameter pipeline• 2 construction seasons (winter and summer-fall)• Targeted in-service — Q4 2014 / Q1 2015

TransCanada9

Questions

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(()) TransCanada10

TransCanada’s Proposed Groundbirch Mainline(Cypress and Aitken Creek Sections) Pipeline Project

September 2011 Update TransCanadaIn business to deliver

NOVA Gas Transmission Ltd., a wholly-owned subsidiary of TransCanada Pipelines Limited (TransCanada), is proposing toconstruct and operate the Groundbirch Mainline Cypress Section and the Groundbirch Mainline Aitken Creek Section pipelines.TransCanada is currently evaluating routing options for the Groundbirch Mainline Cypress Section within the shaded areanoted in the above map. In addition, TransCanada is proposing to construct and operate new receipt meter stations along theproposed pipeline route. These projects, located in the Peace River Regional District, are required to meet producer requestsfor transportation of sweet natural gas from northeast British Columbia. TransCanada anticipates applying for these facilitiesin a single application, pursuant to section 52 of the National Energy BoardAct in the second quarter of 2012.