Cherry Point Cogeneration Project Overview

1. Cherry Point Cogeneration Project Overview

2. TransCanada is one of North America�s leading energy companies with more than $20 billion in assets. While we are best known for our natural gas pipeline business, we are also a rapidly emerging player in the field of power generation. Our headquarters in Calgary, Alberta, and our offices across Canada and the U.S. are staffed by employees who are expert in these businesses. TransCanada is one of North America�s leading energy companies with more than $20 billion in assets. While we are best known for our natural gas pipeline business, we are also a rapidly emerging player in the field of power generation. Our headquarters in Calgary, Alberta, and our offices across Canada and the U.S. are staffed by employees who are expert in these businesses.

3. TransCanada Corporation When it comes to transporting Northern gas to market, one of our advantages is that in North America we ship the largest volumes of natural gas the longest distance in the coldest weather TransCanada: Largest Pipeline Company in North America TransCanada has been compared to its peers using a capacity-distance measure. Using this measure, the TransCanada family of pipelines is the largest in North America. The capacity-distance measure for a family of pipelines is calculated as follows: each pipeline within the family is evaluated at a pipeline segment level. the capacity of each pipeline segment (in bcf/d) is multiplied by its length (in miles) yielding a capacity-distance measure. these capacity-distance measures for each segment are summed to obtain an overall measure for the entire pipeline. to determine the total capacity-distance measure of a family of pipeline companies, the capacity-distance measure for each pipeline is multiplied by the ownership percentage in that pipeline. The sum of these ownership weighted values yields a total capacity-distance measure for a family of pipeline companies held by the parent company. When it comes to transporting Northern gas to market, one of our advantages is that in North America we ship the largest volumes of natural gas the longest distance in the coldest weather TransCanada: Largest Pipeline Company in North America TransCanada has been compared to its peers using a capacity-distance measure. Using this measure, the TransCanada family of pipelines is the largest in North America. The capacity-distance measure for a family of pipelines is calculated as follows: each pipeline within the family is evaluated at a pipeline segment level. the capacity of each pipeline segment (in bcf/d) is multiplied by its length (in miles) yielding a capacity-distance measure. these capacity-distance measures for each segment are summed to obtain an overall measure for the entire pipeline. to determine the total capacity-distance measure of a family of pipeline companies, the capacity-distance measure for each pipeline is multiplied by the ownership percentage in that pipeline. The sum of these ownership weighted values yields a total capacity-distance measure for a family of pipeline companies held by the parent company.

4. TransCanada�s Power Portfolio We also build, own, operate and invest in some of the most efficient power plants on the continent, with the majority fueled by natural gas. We own and manage power plants in Canada and the United States, including one of the largest natural gas-fired power plants in the northeast U.S. Since starting out in 1996 with 2 power plants generating 262 megawatts of power, we have aggressively grown our power portfolio. On the closing of our most recent investment in the Bruce nuclear facility -- anticipated in February 2003 -- TransCanada�s interests will encompass 18 plants with total capacity of approximately 4,150 megawatts. That�s enough power to meet the needs of over 4 million average households. With the recently announced investment in Bruce Power, we have now added nuclear and wind generation to our balanced portfolio of low-cost power generation assets. Our leading-edge expertise in the fuel-efficient process of cogeneration has made us a partner of choice for large industrial customers in developing on-site power generation. TCP is active in power asset acquisitions in Canada and the US TCP is also actively involved in short-term and long term marketing, trading and commercial development of various power markets We also build, own, operate and invest in some of the most efficient power plants on the continent, with the majority fueled by natural gas. We own and manage power plants in Canada and the United States, including one of the largest natural gas-fired power plants in the northeast U.S. Since starting out in 1996 with 2 power plants generating 262 megawatts of power, we have aggressively grown our power portfolio. On the closing of our most recent investment in the Bruce nuclear facility -- anticipated in February 2003 -- TransCanada�s interests will encompass 18 plants with total capacity of approximately 4,150 megawatts. That�s enough power to meet the needs of over 4 million average households. With the recently announced investment in Bruce Power, we have now added nuclear and wind generation to our balanced portfolio of low-cost power generation assets. Our leading-edge expertise in the fuel-efficient process of cogeneration has made us a partner of choice for large industrial customers in developing on-site power generation. TCP is active in power asset acquisitions in Canada and the US TCP is also actively involved in short-term and long term marketing, trading and commercial development of various power markets

5. TransCanada�s Business Drivers Advantaged Assets relative to CC Similar Economy of Scale Similar Dispatch Flexibility Lower Variable Costs Responsive to Market Right Timing Right Size Right Location Stable, Low Risk Growth Long Term contracts with credit-worthy counter parties No surprises

6. Cherry Point Project Overview 720 MW Combined Cycle Cogeneration Plant 3 F-Class gas turbines 1 Steam Turbine Fully Dispatchable (Back-up Boilers) Host Site: BP Cherry Point Refinery 225,000 bbl/d state-of-art refinery; Solomon top quartile performer BP North America: AA credit Project Structure Long term steam and power to BP Refinery 450 MW of power to 3-P contracts Balance of output to TC trading operations

7. Cherry Point Project Overview (cont.) Exclusivity: Q4, 2002 EPC Contractor Selected: Q4, 2002 Site Release: Q4, 2003 Third party power purchase agreements (PPA�s) EFSEC Permit Firm Transmission Agreements Commercial In-Service: Q2, 2006

8. Cherry Point Advantages

9. Cherry Point Advantages

10. Cherry Point Advantages

11. PURPA - Qualifying Facility Status

12. Cherry Point is an Advantaged Generation Asset

13. The Home Stretch - Ensuring Success! Remaining basic success factors reside with BPA: Transmission Market Clarity BPA�s role as resource provider post-2006 Price of BPA hydro power post- 2006 Innovative solutions also reside with BPA: Return of Canadian Entitlement Integration and dispatch of Cherry Point for BPA preference customers

14. Cherry Point Cogeneration ProjectOverview