TransCanada reached a one-year settlement with producers, industrial users, consumers, marketers and export groups regarding our tolls for moving natural gas on our Canadian Mainline System this year.

"We are pleased to have reached this settlement through a collaborative effort with the negotiating parties," said CEO, Hal Kvisle. "The settlement represents a balance of interests, and demonstrates our commitment to develop mutually-beneficial solutions with our customers."

The only remaining hurdle for the determination of the 2005 final tolls is the outcome of the Phase II hearing on the 2004 Mainline Tolls and Tariff application before the National Energy Board (NEB), which wrapped up earlier this month, as it has been agreed that the NEB's decision on the cost of capital for 2004 will be applied to 2005. That decision is expected from the NEB in the second quarter of 2005. The Mainline will remain on interim tolls until that time.

Moving forward, we will apply to the NEB for approval of the settlement in a matter of days.