Investing in the Future

Investing in the Future

$22 billion capital program underway

Pipelines

Keystone

Construction continues on TransCanada's 6,200 kilometre (km) (3,800 mile), US$12 billion Keystone pipeline project that will eventually move crude oil from Western Canada to North America's largest refining markets in the U.S. Midwest and Gulf Coast.

Keystone will have the capacity to deliver 1.1 million barrels of oil per day to U.S. markets

The initial phase of the project is expected to deliver crude oil to Wood River and Patoka, Illinois in mid-2010. Deliveries to Cushing, Oklahoma will follow early in 2011. An expansion of the system to the U.S. Gulf Coast is expected to be operational early in 2013, pending regulatory approvals. Keystone will have the capacity to move 1.1 million Bbl/d when completed.

Alberta System North Central Corridor Expansion

The $800 million North Central Corridor project is scheduled to be complete by April 2010. This 300 km (186 mile) pipeline will provide capacity to ship increasing natural gas supplies in northwest Alberta and northeast B.C. while helping to optimize natural gas flows on the Alberta System. The pipeline's first phase began operating in 2009.

Alberta System Groundbirch and Horn River Projects

The Groundbirch and Horn River pipeline projects will move shale gas from northeast B.C. to North American markets. Shipping agreements on the 77 km (48 mile) Groundbirch line amount to 1.1 billion cubic feet per day (Bcf/d) by 2014. Customers have committed to 503 million cubic feet per day (mmcf/d) by 2014 on the Horn River Project. The 72 km (45 mile) Horn River expansion should be complete in second quarter 2012, while Groundbirch should be operational late in 2010.

Bison

The 487 km (303 mile) Bison pipeline will extend from the Powder River Basin in Wyoming to the Northern Border pipeline system in North Dakota. The project, which is expected to cost US$600 million, has shipping commitments for 407 mmcf/d. Construction is expected to begin in second quarter 2010 following the receipt of the necessary regulatory approvals and the pipeline is expected to commence operations in fourth quarter 2010.

Guadalajara

In 2009, TransCanada signed a contract to build, own and operate the US$320 million Guadalajara pipeline in Mexico. The 305 km (190 mile) pipeline will move liquified natural gas (LNG) from Manzanillo to Guadalajara, Mexico's second largest city. Construction is underway and the pipeline is expected to be placed into service in first quarter 2011.

Linking northern gas to market

Alaska Pipeline Project

The Alaska Pipeline Project marked a significant milestone in January 2010 by filing an open season plan with the U.S. Federal Energy Regulatory Commission (FERC). Billed as the largest construction project in the history of North America, the US$32 billion to US$41 billion pipeline would extend 2,737 km (1,700 miles) from Prudhoe Bay, Alaska to Alberta where the natural gas could be delivered on existing pipeline systems serving major North American markets. An alternate route would see the natural gas move from the North Slope to Valdez, Alaska where it would be converted to liquefied natural gas in a facility to be built by others and then delivered by ship to North American and international markets. If successful, the project could be operational in 2020.

Mackenzie Gas Pipeline Project

The Mackenzie Gas Pipeline initiative reached a milestone with the release of the Joint Review Panel report in December 2009. The parties advancing the proposed 1,200 km (746 mile) pipeline remain focused on obtaining regulatory approval and the Canadian government's support of an acceptable fiscal framework.

Energy

Halton Hills

Work on the $700 million, 683 MW Halton Hills generating station is nearing completion and the plant is expected to be operational in third quarter 2010. Located 40 kilometres (25 miles) west of Toronto, Halton Hills will be capable of producing enough electricity to power nearly 700,000 homes.

Oakville

In 2009, TransCanada was awarded a 20-year Clean Energy Supply contract to build, own and operate the 900 MW Oakville generating station in Oakville, Ontario. TransCanada expects to invest approximately $1.2 billion in the natural gas-fired, combined-cycle plant which is scheduled to start producing power early in 2014.

Coolidge

Construction of the US$500 million, 575 MW Coolidge power plant began in mid-2009. Located near Phoenix, Arizona, the plant will provide a quick response to peak power demands in the region. The plant is expected to be in service in second quarter 2011.

Bruce Power

Progress continues on the refurbishment and restart of Bruce A Units 1 and 2, with reassembly of the reactors now taking place. TransCanada expects to invest approximately $2 billion in the project. When completed in 2011, the two units will be capable of delivering 1,500 MW of electricity to the Ontario market — enough to power one and a half million homes. TransCanada owns 48.8 per cent of Bruce A and 31.6 per cent of Bruce B.

Cartier and Kibby

The Cartier and Kibby Wind power projects will generate clean, renewable electricity for thousands of homes. Cartier, 62 per cent owned by TransCanada, is the largest wind power project in Canada, valued at approximately $1.1 billion. Its five phases will ultimately be capable of producing 590 MW of electricity. Three of the five phases are now operating with completion of the two remaining phases expected by 2012.

TransCanada also completed the first phase of the Kibby project in late 2009. Construction of the second phase continues and is expected to be placed in service in third quarter 2010. Once completed, the US$350 million, 132 MW initiative will be the largest wind power development in Maine, providing enough ‘green energy' for 50,000 homes in the state.