Can a large company undergo a tremendous growth spurt, yet manage its existing assets and all of that new growth in a responsible manner?
Yes-- “responsible growth” aptly describes TransCanada’s path in 2007.
The year has been marked by significant strategic acquisitions and new developments. We expanded our natural gas pipeline network by more than 25 per cent through the ANR acquisition, and became one of North America’s largest natural gas storage operators. In the process, we gained 45 per cent more employees. There were equally exciting developments on the energy side of our business. We own, control or are developing approximately 8,300 megawatts of power generation in Canada and the U.S. These are just some of the many elements of our growth in 2007 and early 2008. Never before have we had such a diverse and attractive portfolio of projects and investment opportunities.
With such wonderful growth comes greater responsibility. Responsibility to our investors; to our many existing and new employees; to the contractors who work diligently with us; to the regulators across the continent who scrutinize our proposals; and to the thousands of residents of communities located near our pipelines and power plants. And then there is our responsibility to the environment. We have always worked hard to ensure environmental sustainability wherever we operate, but naturally the challenge grows along with greater geographical reach. Throughout 2007, we have been acutely aware of our deepening obligation to meet the future with integrity and principled action on all fronts.
In this report on corporate responsibility, we refer again to our day-to-day activities as “our values in action”. That’s how we see our jobs. All of us work within a well-understood culture of values. That culture is so ingrained in us that we quite naturally try to complete every task with the right blend of competence and caring.
You see that face no matter where you turn in TransCanada. You see it in the Code of Ethics that prescribes our behaviour from the Board of Directors and Executive Leadership Team on down. You see it in our insistence that biodegradable hydraulic oil be used in all equipment operated near a river or lake. You see it in our support of Quebec’s AirMedic Programme des enfants which provides free emergency transportation of pediatric patients. TransCanada may be in business to reward our investors, but we believe in ethical behaviour in our search for financial success.
Our opportunities and expansions in 2007 and early 2008 were not without disappointing moments. Some disappointments – we re-evaluated the Cacouna LNG import project from a timing, supply and cost perspective; we were disappointed to learn that New York State made a negative decision about the Broadwater Energy project; we experienced a 4.4 per cent voluntary turnover rate and though this is low for industry average, it is greater than what we have experienced in recent years.
We make no claim to being unique or perfect. Many other companies take their responsibilities to the wider community just as seriously as we do. We too are committed to continuous improvement in everything we do.
That is, in fact, the key message I would like to leave you with this year. At TransCanada, we not only take pride in our accomplishments, we also look upon our disappointments as lessons we can learn from. Please keep that in mind as you read this report on responsibility, and every succeeding one that we publish. I think you’ll find that we try hard to be honest about what we do, keep our promises, and improve our performance with each passing year. In short, we are a responsible company that you can rely on.
Hal Kvisle
President and CEO
June 2008
