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

EnergyEastPipeline

Philippe Cannon,

Energy East Pipeline ProjectJune 13, 2014

The Association of Municipal Administrators of New Brunswick

Privileged and Confidential

ENERGY EAST PIPELINE

Forward-Looking Information and Non-GAAP Measures

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This presentation includes certain forward looking information to help current and potential investors understand management’s assessment of our future plans and financial

outlook, and our future prospects overall. Statements that are forward-looking are based on certain assumptions and on what we know and expect today and generally include

words like anticipate, expect, believe, may, will, should, estimate or other similar words. Forward-looking statements do not guarantee future performance. Actual events and

results could be significantly different because of assumptions, risks or uncertainties related to our business or events that happen after the date of this presentation. Our

forward-looking information is based on the following key assumptions: inflation rates, commodity prices and capacity prices, timing of financings and hedging, regulatory

decisions and outcomes, foreign exchange rates, interest rates, tax rates, planned and unplanned outages and the use of our pipeline and energy assets, integrity and

reliability of our assets, access to capital markets, anticipated construction costs, schedules and completion dates, acquisitions and divestitures.

Our forward looking information is subject to risks and uncertainties, including but not limited to: our ability to successfully implement our strategic initiatives and whether

they will yield the expected benefits, the operating performance of our pipeline and energy assets, economic and competitive conditions in North America and globally, the

availability and price of energy commodities, regulatory decisions and outcomes, outcomes of legal proceedings, including arbitration, changes in the political environment,

changes in environmental and other laws and regulations, construction and completion of capital projects, labour, equipment and material costs, access to capital markets,

interest and foreign exchange rates, weather, cybersecurity and technological developments. You can read more about these risks and others in our most recent Quarterly

Report to Shareholders and 2012 Annual Report filed with Canadian securities regulators and the U.S. Securities and Exchange Commission (SEC) and available at

www.transcanada.com.

You should not put undue reliance on forward-looking information and should not use future-oriented information or financial outlooks for anything other than their intended

purpose. We do not update our forward-looking statements due to new information or future events, unless we are required to by law.

This presentation contains reference to certain financial measures (non-GAAP measures) that do not have any standardized meaning as prescribed by U.S. generally accepted

accounting principles (GAAP) and therefore may not be comparable to similar measures presented by other entities. These non-GAAP measures may include Comparable

Earnings, Comparable Earnings per Share, Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), Comparable EBITDA, Earnings Before Interest and Taxes

(EBIT), Comparable EBIT, Comparable Interest Expense, Comparable Interest Income and Other, Comparable Income Taxes and Funds Generated from Operations.

Reconciliations to the most closely related GAAP measures are included in our most recent Quarterly Report to Shareholders filed with Canadian securities regulators and the

SEC and available at www.transcanada.com.

One of North America’s Largest Natural Gas Pipeline Networks

• 68,500 km of pipeline • 14 Bcf/d or 20% of demand

Third Largest Natural Gas Storage Operator

• 406 Bcf of capacity

Largest Private Sector Power Generator in Canada

• 20 power plants, 10,800 MW• Wind, solar and hydro – 1,167 MW

Premier Oil Pipeline System• Over 1 million bbl/d ultimate

capacity• 33% of Canadian exports

Privileged and Confidential

ENERGY EAST PIPELINE

TransCanada: A Leading North American Energy Infrastructure Company

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ENERGY EAST PIPELINE

Where Do We Get Our Oil?

OverseasEastern CanadaWestern Canada

Sources:

(Refinery consmption in 2012 millions of barrels per day)Sources: EIA, Statistics Canada, CAPP

AB, BC, SK(589)

ON(331)

QC(350)

Maritimes(458)

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ENERGY EAST PIPELINE

What is Energy East?

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ENERGY EAST PIPELINE

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

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ENERGY EAST PIPELINE

Delivering Energy Safely

Pipelines are the safest mode of oil transportation • The industry operates with a 99.9994 per cent safety record in Canada

Energy East will be one of the most technologically advanced pipelines ever built• 24/7 monitoring system with highly trained staff and satellite technology• Safety valves can isolate irregularities in minutes• Additional safety valves at sensitive areas including key watercourses• Extra safety precautions at road, rail and water crossings and near populous areas

Safety is TransCanada’s highest priority

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ENERGY EAST PIPELINE

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

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ENERGY EAST PIPELINE

Respecting the Environment

TransCanada’s ongoing goal is to cause as little disturbance 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

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ENERGY EAST PIPELINE

Committed to Engaging in Consultations

TransCanada will be engaging with local communities throughout the lifetime of the project (before, during and after)

• Meetings with landowners, elected

officials, municipalities, Aboriginal

groups and other stakeholders

• Information sessions and open houses

for local stakeholders and residents

• Social responsibility is a TransCanada

core value

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)

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ENERGY EAST PIPELINE

Deloitte Economic Assessment

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Impact on Canadian GDP

$35.3 billion

11,158 Direct Jobs

Development: 2,342Construction: 7,729Operations : 1,087

$10 billion in tax revenues

Impact On New Brunswick GDP

$2.8 billion

1,548 Direct Jobs

Development: 332Construction: 1,095

Operations: 121

$694 million in tax revenues

ENERGY EAST PIPELINE

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

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• 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

ENERGY EAST PIPELINE

Services

• Fabrication Work

• Structural

• Piping Spools

• Land Survey

• Environmental

• Geo-tech

• Brushing/ Snow Removal

• Rig Mats Supply

• Construction Equipment Rental

• Concrete and Aggregate Supplies

• Engineering ( as sub-contract for local component)

• Mechanical, Electrical, Civil work (as sub-contractor)

• Sand Padding

• Emergency material requirements

• Construction Consumables/ Office Supplies

• Fencing/Temporary Lighting

• Short Term Office Support

• Field/Construction Labor

• Fuel Supply

• Hotel Accommodations

• Camp

• Potable Water/Sewage Removal

• Testing of Concrete, Soil, etc.

• Trailer Rental

• Security Services

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ENERGY EAST PIPELINE

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/

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