## 2001 ACCOMPLISHMENTS 

## ADDING VALUE THROUGH TIMELY AND STRATEGIC ACQUISITIONS 

In December 2001, TransCanada partnered with AltaGas Services Inc. to purchase the remaining rights and obli- gations of the 706 megawatt (MW) Sundance B power purchase arrangement (PPA) from Enron Canada Power Corp. The purchase represents a significant and extremely competitive source of power in Alberta. Previously, TransCanada acquired 100 per cent of the generating capacity of the 560 MW Sundance A power plant under sim- ilar arrangements. 

Because we’re continually evaluating acquisitions in Canada and the U.S., we know what we want and we know what makes sense for TransCanada. The Sundance B PPA purchase demonstrated our ability to act quickly and decisively on the opportunity to acquire new capacity at the low end of the supply cost curve. We were able to put in place immediately the infrastructure to manage our investment and market the facility’s output. 

## BUILDING GEOGRAPHIC AND FUNCTIONAL DIVERSIFICATION 

TransCanada’s diversified portfolio of managed and owned power assets ranges from its Williams Lake plant, the largest biomass fueled plant in North America, to enhanced combined-cycle plants in Ontario that efficiently utilize waste heat from the company’s Canadian Mainline compressor stations to generate power. In the first half of 2001, TransCanada added hydroelectric power through the acquisition of the Curtis Palmer Hydroelectric Company and its two plants in New York. 

The Curtis Palmer acquisition provides us with additional clean, low marginal cost power in the U.S. northeast, adding to our existing facilities in New York and Rhode Island. The entire output of the plants, approximately 60 MW, is sold under a fixed-price, long-term agreement with a remaining term of more than 25 years. As a stable source of income in one of the fastest-growing power markets on the continent, Curtis Palmer fits our objective of growing our power business through strategic, disciplined and profitable investments. 

## BUILDING OUR STRENGTHS IN COGENERATION 

Cogeneration is a fuel-efficient, low-cost method of power generation that uses excess heat captured from natural gas-fired electricity production to generate a second energy source. In 2001, TransCanada completed construction of two cogeneration plants near Redwater and Carseland, Alberta, on time and on budget, adding to the company’s expanding portfolio of cogeneration plants. TransCanada’s experience and reputation in tailoring cogeneration facilities to the specific needs of its commercial customers and partners were instrumental in securing two new major cogeneration projects in Alberta in 2001. 

The 165 MW MacKay River cogeneration plant, located at Petro-Canada’s MacKay River in-situ oil sands project, will be the first large-scale cogeneration plant in the Alberta Oil Sands, and will establish the model for future cogeneration plants in the area. The plant will reduce total greenhouse gas emissions by about 50 per cent compared to the equivalent supply of steam and electricity without cogeneration. 

The Bear Creek cogeneration plant will provide electricity and steam to Weyerhaeuser Company’s Grande Prairie Pulp Mill and will use natural gas as well as biomass-derived steam from the adjacent mill to provide power to all eight manufacturing facilities in Weyerhaeuser’s Alberta operations. The project will enable Weyerhaeuser to reduce significantly the amount of wood waste sent to landfill. 

