TransCanada assumes that results from its Energy operations in 2010 will be materially consistent with those in 2009 and will include the positive impact of a full year of earnings from Portlands Energy and phase one of Kibby Wind, as well as incremental earnings from Halton Hills and phase two of Kibby Wind, which are expected to be commissioned in third quarter 2010.

The Company expects capacity prices in the New York City market, in which Ravenswood operates, to improve with the long-planned retirement of a power generating facility owned by the New York Power Authority which occurred at the end of January 2010. The positive impact from this facility's retirement may be partially offset by some reductions in demand in this market, driven by the economic downturn and the results of energy efficiency investments being made in the region.

The current economic climate continues to negatively affect demand, liquidity and prices in commodity markets in which TransCanada's Energy segment operates. Earnings in Western Power, Bruce Power and U.S. Power are expected to be negatively impacted in the near term by the expiry of existing forward sale contracts as new contracts would generally be negotiated at lower prices.

Although TransCanada has sold forward significant output from its power plants and Alberta PPAs, as well as capacity from its natural gas storage facilities, Energy's EBITDA in 2010 can be affected by changes in factors such as the spot market price of power, market heat rates, hydrology, capacity payments, natural gas storage spreads and unplanned outages. EBITDA from Energy's U.S. operations is also affected by changes in foreign currency exchange rates.

Other factors such as plant availability, regulatory changes, weather, currency movements and overall stability of the energy industry can also affect 2010 EBITDA. Refer to the Energy — Business Risks section of this MD&A for a complete discussion of these factors.

Capital Expenditures

Energy's total capital expenditures in 2009 were $1.5 billion. Energy's overall capital spending in 2010 is expected to be approximately $1.3 billion, including cash calls for the Bruce A refurbishment and restart project, and continued construction at Coolidge, Cartier Wind, Kibby Wind, Halton Hills and Oakville.