Hal Kvisle, President and Chief Executive Officer of TransCanada Corporation, announced organizational structure and key executives changes at TransCanada, effective June 1, 2006. The changes provide for greater focus on our regulated and non-regulated businesses. For more information about these changes, please refer to the news releases for both TransCanada Corporation and TC Pipelines LP.

On June 15, Russ Girling, President, Pipelines announced further changes to his organization, which is dedicated to managing our pipeline business. Max Feldman was appointed Senior Vice President, Canadian Pipelines and Craig Frew was appointed Vice President, U.S. Pipelines. For more detailed information about all changes to Russ' team, please refer to the letter sent to customers on June 15, 2006.

The team reporting to Max includes many of the experienced leaders you already know, including:

• Steve Clark, Vice President, Commercial - West
• Steve Pohlod, Vice President, Commercial - East
• Dean Ferguson, Vice President, Market Development
• Shelagh Ricketts, Vice President, System Design and Operations
• Steve Emond, Director, Customer Service

Please refer to the Canadian Pipelines Management Team Structure on Customer Express for more detailed information.

Commercial - West

This team is responsible for overall commercial needs and customer relationships for the Alberta, BC, and Foothills Systems. This team supports the negotiation and implementation of all commercial arrangements and pipeline settlements, management of the stakeholder collaborative process (Tolls, Tariff, Facilities, and Procedures Committee - TTFP) and the financial performance of the individual pipelines.

The management team reporting to Steve Clark includes:

• Dave Schultz, Manager, Supply
• John Dunn, Manager, Markets and Interconnecting Pipes
• Wendy West, Manager, Collaboration (TTFP)

Since the announcements above, John Dunn has accepted a new role of Director, LNG Development, effective September 15, 2006. We wish John well in his new promotion. We are immediately commencing a search for a replacement for John. Watch Customer Express for details.

Please refer to the Commercial - West Team Structure on Customer Express for more information.

Commercial - East

This team is responsible for meeting the commercial needs and customer relationships with our current and prospective customers for the Canadian Mainline and our interest in Trans Québec and Maritimes Pipeline Inc. (TQM). This team supports the negotiation and implementation of all commercial arrangement and pipeline settlements, management of the stakeholder collaborative process (Tolls Task Force - TTF) and the financial performance of the individual pipelines.

Many changes have been made to this team. The management team reporting to Steve Pohlod includes:

• Don Bell, Director, Mainline East
• Tim Stringer, Manager, U.S. Northeast Markets
• Cliff Taylor, Manager, Canadian LDC's and End Use Markets
• Wendy Simpson, Manager, Mainline West
• Bev Leggett, Manager, Collaboration (TTF)

We would like to acknowledge the service of Ches Maciorowski in his role serving our Eastern customers and wish him all the best as he pursues new opportunities.

Please refer to the Commercial - East Team Structure on Customer Express for more information.

For more information on the organizational changes at TransCanada, please refer to the Canadian and U.S. Pipelines Team Structures on Customer Express.

In this issue of Update, we profile Steve Pohlod, Vice President, Commercial - East. Watch future issues of Update for more information on TransCanada's leaders.