Fort McMurray

The Alberta Oil Sands area located near the City of Fort McMurray, represent a new and exciting market opportunity for TransCanada's Alberta System (Nova Gas Transmission Limited - NGTL) customers. Three customers, Syncrude, Suncor and Petro-Canada, had requested delivery service in this area, totaling 412 MMcf/d. The application to provide the service was submitted to the EUB in March 2001. In early 2002, TransCanada' Alberta System received approval from the EUB to provide regulated, Mainline delivery service into the Fort McMurray area, at the Mildred Lake Meter Stations.

We are excited about the growth prospects this market presents, and we will continue to work with customers to meet their growing needs in this area.

Fort Saskatchewan

The Fort Saskatchewan, Alberta market is one of the fastest growing markets in North America and represents a large new market opportunity for TransCanada's Alberta System and our customers. Two customers in particular, Dow Chemical and Sherritt International, with a total contract requirement of 121 MMcf/d, requested service that resulted in the development of the Fort Saskatchewan extension project. This market will provide additional delivery choices for all customers and increase the supply on the Alberta System that will reduce tolls for all customers. A physical alternative offers customers security of supply.

Agreements are in place with customers to support the construction of 77 kilometers of Nominal Pipe Size (NPS) 20 from the Mainline to the industrial area of Fort Saskatchewan. The line is expected to be in service October 2002.

Our application was filed with the Alberta Energy and Utilities Board (AEUB) in October 2001 and the hearing began on May 13, 2002. The overall theme for TransCanada's Alberta System's final argument was 'the applied-for facilities best meet our Alberta System customers requests for service and best manage the risks and uncertainties to the benefit of all Alberta System customers'. The hearing that addressed issues regarding this project concluded on May 23, 2002.