TransCanada Renews Discussions on Alaska Pipeline Project

TransCanada Corporation has been engaged in renewed discussions with the State of Alaska relating to the Alaskan portion of the Alaska Highway Pipeline Project. The State has extended to TransCanada the same offer that was made to MidAmerican Energy Holding Company on March 25, 2004.

Further to these discussions, TransCanada is prepared to assume a leadership position with respect to the development of an independently-owned pipeline project in Alaska, in addition to our long-standing leadership of the Canadian portion of the project.

Since being granted the certificates for the project in both Canada and Alaska 25 years ago, TransCanada, through its wholly-owned subsidiaries the Alaskan Northwest Natural Gas Transportation Company and Foothills Pipe Lines Ltd., has promoted the development of a transportation system that will deliver Alaska's natural gas resources to markets in the Lower 48 States. Over that period, TransCanada has worked actively to bring stakeholders together to resolve the many issues facing a project of this scale in both Canada and Alaska. Most recently, our commitment to the project has been evidenced by the submission to both the State of Alaska and other stakeholders of a proposal for solving the commercial obstacles to the project.

TransCanada will work with the State on resolving Alaska State right of way issues. We are open to the potential participation of various Alaska Native corporations. TransCanada looks forward to collaborating with the State and the key stakeholders to create a commercial structure that allows the project to move forward.