About This Report

What You’ll Find Here

The statistical content of the report covers those assets TransCanada operated in North America in 2006. Occasionally, the text of the report refers to 2007 events that are related to 2006 initiatives. Unless otherwise noted, all currency figures are expressed in Canadian dollars.

The report’s organization reflects the traditional three-part division of corporate responsibility reports: People, Environment, and Business. Within each section, we have discussed the events of the last year in terms of:

Our Approach

• this is a high-level, cross-functional discussion of the policies, procedures and everyday practices we follow in addressing the needs of our stakeholders, the protection of the environment, and the management of our business. Additional information is available through hyper-links.

Our Performance

• the core of the report, Our Performance outlines our accomplishments and our challenges from the past year. Sometimes quantitative and sometimes qualitative, depending on the topic, it gives you a snapshot of the challenges we faced, how we met them, and what we plan to do about them in the future.

Our Values in Action

• this is where we showcase the application of our values in the field and the office. Within each section of the report, you will find examples of how our employees performed their roles responsibly throughout the year.

What’s Coming Next

While we are pleased to note that independent critics have recognized the quality and thoroughness of our previous reports on corporate responsibility, TransCanada does not rest on its laurels.

In 2006, we requested a third-party assessment of our 2005 Social Responsibility report to see what we might do better. While the Canadian Business for Social Responsibility reviewers were complimentary, they recommended improvement in some areas and we are progressing on those areas. In future years, you will see even more positive changes.

As our reports evolve, we are guided in their preparation by several of the emerging standards in reporting on corporate responsibility. Our approach to reporting is consistent with the intent of such standards. We feel this is appropriate given the high degree of variability of reporting methods among corporations.

If you have any questions for us, or suggestions as to how we might improve our performance or our reporting, please contact us. We welcome your comments.