Liquidity and Capital Resources

Liquidity and Capital Resources

TransCanada's financial position remains sound and consistent with recent years as does its ability to generate cash in the short and long term to provide liquidity, maintain financial capacity and flexibility, and provide for planned growth. TransCanada's liquidity position remains solid, underpinned by predictable cash flow from operations, cash balances on hand from preferred share and debt issues, and unutilized committed revolving bank lines of US$1.0 billion, $2.0 billion and US$800 million, maturing in November 2011, December 2012 and December 2012, respectively. These facilities also support the Company's commercial paper programs. In addition, at December 31, 2010, TransCanada's proportionate share of unutilized capacity on committed bank facilities at TransCanada-operated affiliates was $111 million with maturity dates in 2011 and 2012. As at December 31, 2010, TransCanada had remaining capacity of $1.75 billion, $2.0 billion and US$1.75 billion under its equity, Canadian debt and U.S. debt shelf prospectuses, respectively. In lieu of making cash dividend payments, a portion of declared dividends for common and preferred shares are expected to be paid in common shares issued under the Company's DRP. TransCanada's liquidity, market and other risks are discussed further in the Risk Managementand Financial Instruments section in this MD&A.