To keep you informed of the process, here is a brief update on the Alberta System General Rate Application (GRA). TransCanada, through its wholly owned subsidiary Nova Gas Transmission Ltd. (NGTL), filed Phase 1 of the Alberta System's 2004 GRA at the end of September 2003. Phase 2 was filed in mid-November 2003.

The evidentiary portion of Phase 1 of the GRA, which deals with the rate base and revenue requirement, concluded on April 14, 2004. Written Argument is to be submitted by May 5, and Reply Argument by May 26.

On April 2, TransCanada and the Canadian Association of Petroleum Producers (CAPP) reached an agreement to align their positions on Long-Term Incentive Compensation and pension costs and the proposed Code of Conduct contained in the Phase 1 application. As a result of the agreement, CAPP withdrew its evidence in the proceeding on April 5, and TransCanada amended its application to reflect the agreement.

TransCanada filed Information Requests to certain intervenors in Phase 2 of the Alberta System's GRA on April 8. The application is largely in support of current rate design, with regard for the settlement reached with major stakeholders in 2003.

TransCanada will file rebuttal evidence in May, and the GRA Phase 2 hearing will commence on June 1, 2004 at 9:00am.

Watch future issues of Update for further updates regarding regulatory proceedings on our Alberta System.

For more information on TransCanada's tolls and tariff filings, please contact Klaus Exner at 403.920.5978.