Perspectives on North American Pipeline Infrastructure Opportunities

Don Wishart, EVP Operations & Major Projects

TransCanada Corporation

IPLOCA September 2009

Forward-Looking Information

This presentation may contain certain information that is forward looking and is subject to important risks and uncertainties. The words "anticipate", "expect", "believe", "may", "should", "estimate", "project", "outlook", "forecast" or other similar words are used to identify such forward-looking information. Forward-looking statements in this document are intended to provide TransCanada shareholders and potential investors with information regarding TransCanada and its subsidiaries, including management’s assessment of TransCanada’s and its subsidiaries’ future financial and operations plans and outlook. Forward-looking statements in this document may include, among others, statements regarding the anticipated business prospects and financial performance of TransCanada and its subsidiaries, expectations or projections about the future, and strategies and goals for growth and expansion. All forward-looking statements reflect TransCanada’s beliefs and assumptions based on information available at the time the statements were made. Actual results or events may differ from those predicted in these forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, the ability of TransCanada to successfully implement its strategic initiatives and whether such strategic initiatives will yield the expected benefits, the operating performance of the Company’s pipeline and energy assets, the availability and price of energy commodities, regulatory processes and decisions, changes in environmental and other laws and regulations, competitive factors in the pipeline and energy industry sectors, construction and completion of capital projects, labour, equipment and material costs, access to capital markets, interest and currency exchange rates, technological developments and the current economic conditions in North America. By its nature, forward-looking information is subject to various risks and uncertainties, which could cause TransCanada's actual results and experience to differ materially from the anticipated results or expectations expressed. Additional information on these and other factors is available in the reports filed by TransCanada with Canadian securities regulators and with the U.S. Securities and Exchange Commission (SEC). Readers are cautioned to not place undue reliance on this forward-looking information, which is given as of the date it is expressed in this presentation or otherwise, and to not use future-oriented information or financial outlooks for anything other than their intended purpose. TransCanada undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

TransCanada Pipeline Assets

September 11, 2009TransCanada3

Existing Pipelines

Proposed Pipelines

Gas Storage Facilities

GTN System

Tuscarora

North Baja

Tamazunchale

Foothills/BC

Iroquois

Portland

ANR

Alberta System

Canadian MainlineTQM

Great Lakes

Keystone

Northern Border

Guadalajara

• 59,000 km (36,500 miles)of wholly-owned pipeline

• Interests in an additional7,800 km (4,800 mi) of pipeline

• Unparalleled connectionsfrom traditional and emerging basins to growing markets

• Average daily volume ofapproximately 15 Bcf

• Provider of 370 Bcf of gas storage capacity

• 3,882 kms of pipeline currently under construction

• 3,463 kms of construction is associated with the 1,090,000 B/d Keystone Oil Pipeline

Bison

Industry Trends: Oil and Gas

• Conventional supplies of oil and gas are declining

• New shale gas basins play a significant and growing role in gas supply but also involve a fair amount of uncertainty around the recoverable capacity

• Low cost shale gas, coupled with lower demand, has pushed out LNG

• U.S. demand for Canadian oil is increasing and will be partially satisfied by the oil sands crude

• Construction costs have doubled and tripled then declined in the last five years, portraying the volatile nature of the industry

• Applied technologies are enabling solutions

• Environmental issues will be a significant influence

Pipeline Opportunities

Natural Gas Pipeline Outlook

Canada, U.S., and Mexico Natural Gas Demand

0

10

20

30

40

50

60

70

80

90

1990 1995 2000 2005 2010 2015 2020

E.G. Industrial Residential Commercial Other

Bcf/d

History Forecast

2008-2020 Growth 0.7% pa

Industrial Growth 0.3% pa

Electric Gen Growth 1.7% pa

Residential Growth 0.3% pa

Commercial Growth 0.4% pa

North American Gas Supply (Including Mexico Production)

0102030405060708090

100

1990 1995 2000 2005 2010 2015 2020

U.S. Other

Gulf of Mexico

WCSB

U.S. Rockies

Eastern Canada

Bcf/d

North

LNG

Mexico

Demand

History Forecast

Production From Key U.S. and B.C. Gas Shales

0.02.04.06.08.0

10.012.014.016.018.020.0

2000 2005 2010 2015 2020

Bcf/d

Fayetteville Shale

History Forecast

Woodford/Caney Shale

Barnett Shale

Haynesville Shale

Marcellus Shale

North East B.C.

U.S. LNG Imports and Re-gas Capacity

0.0

5.0

10.0

15.0

20.0

2000 2005 2010 2015 2020

Bcf/d

Re-gas Capacity

Actual Imports

History Forecast

Advancing Northern Gas Pipelines

10

Mackenzie Gas Pipeline

AlaskaPipelineProject

Pipelines

Proposed Pipelines

Gas Storage Facilities

Conventional Gas BasinsAlaska Pipeline

1,715 miles, NPS 48 – 2,500,000 tonnes of pipe

AGIA License granted by state to TC – Dec. 2008

TransCanada/Exxon partnership in-place – 2009

Open season planned for 2010

Competing BP/ConocoPhillips proposal does not conform with AGIA requirements

Mackenzie Gas Pipeline

1,843 miles, NPS 30 – 420,000 tonnes of pipe

Largest construction proposal in Canadian history

Environmental review by independent Joint Review Panel is ongoing

Project proponents involved in discussions with Canadian federal government to financially restructure project

• Both projects face challenges due competition from low cost shale gas and regulatory hurdles

• These challenges can be overcome in the mid to long-term timeframe

Mexico Pipeline Developments

CD Juarez

Nogales

Mexico City

Mérida

Toluca

Tuxpan

Naco

LázaroCárdenas

Guadalajara

Altamira

Manzanillo

Guaymas

Chihuahua

Valladolid

Reynosa

Monterrey

Tijuana

Acapulco

Topolobampo

Mazatlán

Mexicali

Cancun

Manzanillo to Guadalajara, 2011 in service

San Luis de la Paz to Guadalajara

Tamazunchale Pipeline• 130 km, 36-inch diameter• Initial capacity 170 MMcf/d• Future expansion up to 430 MMcf/d

Guadalajara Pipeline• 310 km, 30-inch diameter• Initial capacity 500 MMcf/d• Future expansion up to 900 MMcf/d

San Lui de la Paz

Tamazunchale, 2006 in service

Tamazunchale Pipeline Extension, 2012 in service

Pipeline Opportunities

Crude Oil Pipeline Outlook

Alberta Oil Sands

Source: Alberta Energy and Utilities Board

Established Reserves• Mineable 32 B• In Situ 143 B

CAPP 2009 Canadian Crude Oil Forecast

Oil sands growth drives Canadian crude production

Source: CAPP June 2009 Canadian Crude Oil Production & Supply Forecast (2005-2025)

Canadian and U.S. Crude Oil Pipeline Proposals

Source: CAPP June 2009 Canadian Crude Oil Production & Supply Forecast (2005-2025)

TransCanada’s proposed and existing pipeline projects

Keystone Oil Pipeline

Port ArthurHouston

KeystoneGulf CoastExpansion

Pipelines

Proposed Pipelines

Gas Storage Facilities

Cushing

PatokaWood River

Hardisty

Keystone

Steele City

2009 in-service

2011 in-service

2010 in-service

2012 in-service

* Comprises Keystone and Keystone Gulf Coast Expansion. Keystone is currently in construction.

Keystone System*

• 1,090,000 B/d capacity

• 910,000 B/d binding contractual commitments for an average term of 18 years

• Future expansion potential to 1,500,000 B/d capacity

• US$12.2 billion, TC 100%

• In service 2009-2012

Other Pipeline Opportunities

• CO2 Pipelines

• Water Pipelines

• Ethanol Pipelines

• Hydrogen Pipelines

Summary of Pipeline Mileage (2009+)

Miles of Pipeline Construction (by diameter)

4-10 in. 12-20 in. 22-30 in. 30+ in. TotalGas Pipelines

U.S. 25 325 1,427 7,526 9,303Canada 253 380 633

Crude Oil PipelinesU.S. 57 157 2,394 2,608Canada 866 1,934 2,800

Product PipelinesU.S. 812 314 460 1,586Canada 387 387

Total 82 1,681 2,860 12,694 17,317

Source: Oil & Gas Journal, February 2009

Influencing Factors

• Regulatory process and permitting

• Material and contract commitments

• NIMBY: landowners, communities,…

• Long-term contracts

• Societal rebalancing of:• Risk/reward• Individual rights versus the public good

Perspectives on North American Pipeline Infrastructure Opportunities

Don Wishart, EVP Operations & Major Projects

TransCanada Corporation

IPLOCA September 2009