Philippe Cannon , Energy East Pipeline Project June 13, 2014

1. Philippe Cannon, Energy East Pipeline ProjectJune 13, 2014 The Association of Municipal Administrators of New Brunswick

2. ENERGY EAST PIPELINE Forward-Looking Information and Non-GAAP Measures This presentationincludes certain forwardlooking information to help current and potentialinvestorsunderstandmanagement’sassessment of our future plans and financialoutlook, and our future prospects overall. Statementsthat are forward-looking are based on certain assumptions and on whatwe know and expecttoday and generallyincludewordslikeanticipate, expect, believe, may, will, should, estimate or othersimilarwords. Forward-lookingstatements do not guarantee future performance. Actualevents and resultscouldbesignificantlydifferentbecause of assumptions, risks or uncertaintiesrelated to our business or eventsthathappenafter the date of thispresentation. Our forward-looking information isbased on the followingkeyassumptions: inflation rates, commodityprices and capacityprices, timing of financings and hedging, regulatorydecisions and outcomes, foreign exchange rates, interest rates, tax rates, planned and unplannedoutages and the use of our pipeline and energyassets, integrity and reliability of ourassets, access to capital markets, anticipated construction costs, schedules and completion dates, acquisitions and divestitures. Our forwardlooking information issubject to risks and uncertainties, including but not limited to: ourability to successfullyimplementourstrategic initiatives and whethertheywillyield the expectedbenefits, the operating performance of our pipeline and energyassets, economic and competitive conditions in NorthAmerica and globally, the availability and price of energycommodities, regulatorydecisions and outcomes, outcomes of legalproceedings, including arbitration, changes in the politicalenvironment, changes in environmental and otherlaws and regulations, construction and completion of capital projects, labour, equipment and materialcosts, access to capital markets, interest and foreign exchange rates, weather, cybersecurity and technologicaldevelopments. You canread more about theserisks and others in ourmostrecentQuarterly Report to Shareholders and 2012 Annual Report filedwith Canadian securitiesregulators and the U.S. Securities and Exchange Commission (SEC) and availableatwww.transcanada.com. You should not put unduereliance on forward-looking information and should not use future-oriented information or financialoutlooks for anythingotherthantheirintendedpurpose. We do not update ourforward-lookingstatements due to new information or future events, unlesswe are required to by law. This presentationcontainsreference to certain financialmeasures (non-GAAP measures) that do not have anystandardizedmeaning as prescribed by U.S. generallyacceptedaccountingprinciples (GAAP) and thereforemay not be comparable to similarmeasurespresented by otherentities. These non-GAAP measuresmayinclude Comparable Earnings, Comparable Earnings per Share, EarningsBeforeInterest, Taxes, Depreciation and Amortization (EBITDA), Comparable EBITDA, EarningsBeforeInterest and Taxes (EBIT), Comparable EBIT, Comparable InterestExpense, Comparable InterestIncome and Other, Comparable Income Taxes and FundsGeneratedfrom Operations. Reconciliations to the mostcloselyrelated GAAP measures are included in ourmostrecentQuarterly Report to Shareholdersfiledwith Canadian securitiesregulators and the SEC and availableatwww.transcanada.com. Privileged and Confidential

3. ENERGY EAST PIPELINE TransCanada: A LeadingNorth American Energy Infrastructure Company • One of NorthAmerica’sLargest Natural Gas Pipeline Networks • 68,500 km of pipeline • 14 Bcf/d or 20% of demand • ThirdLargest Natural Gas Storage Operator • 406 Bcf of capacity • LargestPrivateSector Power Generator in Canada • 20 power plants, 10,800 MW • Wind, solarand hydro – 1,167 MW • Premier Oil Pipeline System • Over 1 million bbl/d ultimatecapacity • 33% of Canadian exports Privileged and Confidential

4. Where Do We Get Our Oil? AB, BC, SK(589) QC (350) Sources: Overseas EasternCanada Western Canada ON (331) Maritimes(458) (Refineryconsmption in 2012 millions of barrels per day) Sources: EIA, Statistics Canada, CAPP

5. WhatisEnergy East?

6. Canaport Energy East Marine Terminal Joint venture between TransCanada and Irving Oil Crude oil export terminal Fixed jetty with two berth capability Monitored and operated with latest technology

7. DeliveringEnergySafely Pipelines are the safest mode of oil transportation • The industryoperateswith a 99.9994 per cent safety record in Canada Energy East willbe one of the mosttechnologicallyadvanced pipelines everbuilt • 24/7 monitoring system withhighlytrained staff and satellite technology • Safety valves canisolateirregularities in minutes • Additionalsafety valves at sensitive areas includingkeywatercourses • Extra safetyprecautionsat road, rail and water crossings and nearpopulous areas SafetyisTransCanada’shighestpriority

8. Emergency Management TransCanada will develop an Emergency Response Plan (ERP) in accordance with federal regulations (NEB OPR) • To be completed 4-6 months before in-service • Developed in consultations with local emergency service agencies (i.e. fire departments, emergency managers, etc.) • Specialized oil spill equipment will be procured and stored strategically along pipeline system • Trained responders are on-call 24/7 and include TransCanada personnel and contractors TransCanada takes full responsibility for emergency response and clean-up

9. Respecting the Environment TransCanada’songoing goal isto cause as littledisturbance to the environment as possible • The project will adhere to the strictest environmental guidelines • Our Environmental Protection Plan will mitigate potential impacts during and after construction • Committed to preserving important natural and cultural features • Collaboration with local communities and Aboriginal groups for data collection

10. Committed to Engaging in Consultations TransCanada will be engaging with local communities throughout the lifetime of the project (before, during and after) • New Brunswick • Over 30 municipalities • 15 First Nation Communities • Over 400 Landowners • Over 1800 individuals during 11 Open Houses conducted • Over 150 stakeholders during 9 Information Sessions • Over 2000 stakeholders during event presentations • Over 30 meetings (NGOs and ENGOs) • Meetings with landowners, elected officials, municipalities, Aboriginal groups and other stakeholders • Information sessions and open houses for local stakeholders and residents • Social responsibilityisa TransCanadacore value

11. Deloitte Economic Assessment Impact on Canadian GDP $35.3 billion Impact On New Brunswick GDP $2.8 billion 1,548 Direct Jobs Development: 332 Construction: 1,095 Operations: 121 11,158 Direct Jobs Development: 2,342 Construction: 7,729 Operations : 1,087 $694 million in tax revenues $10 billion in tax revenues

12. Spreading the wealth • 3 construction camps along the route • Land lease • People to assemble the camps • Staff to operate • 5 pumping stations located along the route • A base load supply of electricity from NB Power, • Paying property tax to the host community • An ongoing operations and maintenance program • Access to TransCanada’s Community Investment Fund • In 2012, we invested a total of $11,016,390 into nearly 1,600 non-profit organizations across North America • Opportunities for First Nations in New Brunswick to participate in different aspects of the project

13. Services

14. Energy East – Procurement The Project is currently in the early development stages The Project Contracting & Procurement Strategy will be finalized over the next few months Qualified vendors in each region will be considered for the supply of materials, equipment, and services for both the pipeline and facilities portions of the Project Suppliers and Contractors can register on the Energy East vendor portal link: http://www.energyeastpipeline.com/benefits/contractors-and-vendors/