Transcript Integration of ATCO and NGTL

Adapting to a Changing Energy Environment
Russ Girling, President and CEO, TransCanada Corporation
May 15, 2012
STRIKING A BALANCE
IN THE MIDST OF CHANGE
May 13-16, 2012
Québec City, Québec (Canada)
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 presentation are intended to provide TransCanada security holders and potential investors with
information regarding TransCanada and its subsidiaries, including management’s assessment of TransCanada’s
and its subsidiaries’ future financial and operational plans and outlook. Forward-looking statements in this
presentation may include, among others, statements regarding the anticipated business prospects, and financial
performance of TransCanada and its subsidiaries, expectations or projections about the future, strategies and
goals for growth and expansion, expected and future cash flows, costs, schedules (including anticipated
construction and completion dates), operating and financial results, and expected impact of future commitments
and contingent liabilities. 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 others, 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,
capacity payments, regulatory processes and decisions, changes in environmental and other laws and regulations,
competitive factors in the pipeline and energy sectors, construction and completion of capital projects, labour,
equipment and material costs, access to capital markets, interest and currency exchange rates, technological
developments and 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 not to place undue reliance on this forward-looking
information, which is given as of the date it is expressed in this presentation or otherwise, and not to use futureoriented 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.
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What am I going to say…?
• Who is TransCanada
• Changing Markets
• Gas Pipelines
• Oil Pipelines
• Power Generation
• Adapting and
Accommodating
Changes
Delivering Critical Energy Infrastructure
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TransCanada
One of North America’s Largest
Natural Gas Pipeline Networks
• 68,500 km (42,500 mi)
wholly and partially-owned
• Average volume of 14 Bcf/d
North America’s 3rd Largest
Natural Gas Storage Operator
• 380 Bcf of capacity
Canada’s Largest Private
Sector Power Generator
• 20 power plants, 10,900 MW
• Wind, Solar & Hydro – 1,390 MW
Premier North American Oil
Pipeline System
• 1.4 million Bbl/d ultimate capacity
Enterprise Value ~ $55 billion
4,400 Employees
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Natural Gas Pipelines
• Supply being developed close to
traditional markets
• Innovative changes to tolling and services
required on existing infrastructure to
remain competitive
• Regulators provide balance in utilization
of existing infrastructure and building of
new
North American Gas Supply/Demand Balance
The Emergence of Unconventional Gas
Bcf/d
History
Demand
Forecast
LNG LNG
WCSB
BC Unconv.
Eastern Canada
U.S. Rockies
U.S. Shale
Gulf of Mexico
+ U.S. Other
Mexico
Source: TransCanada
Fall 2011 Outlook
5
Canadian Crude Oil Penetration (MBPD)
MBPD
4500
4000
WCSB Crude Oil Supply Outlook
History
Forecast
3500
3000
WCSB Bitumen Blend
2500
2000
1500
WCSB Upgraded Light
1000
WCSB Conventional Heavy
500
0
2005
WCSB Conventional Light
2010
2015
2020
Canadian Imports
Foreign Imports
Production
Capacity
Non-Canadian Imports
Canadian Sourced Oil
Source: 2012 EIA Actuals.
All values in M bpd.
6
U.S. Power Generation by Fuel
Type
TWh
Source: U.S. Energy Information Administration
Annual Energy Outlook 2012 – Early Release Overview
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Energy Infrastructure
Development
Cumulative Investment in Energy Supply Infrastructure by
Region and Fuel 2011-2035
Power
OECD Asia Oceania
Oil
India
Gas
Middle East
Coal
Other Asia
Biofuels
Latin America
Africa
E. Europe/Eurasia
OECD Europe
China
North America
0
1
2
3
4
5
6
7
8
Trillion (2010)
(2010)
$ $trillion
Source: International Energy Agency (IEA) World Energy Outlook 2011 - New Policies Scenario
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Take-Aways / Challenges
Need: Energy Infrastructure - “New and Old”
Need: Thoughtful, Balanced, Inclusive, and Honest
Process to Determine What We Want To Do
(Good Policy)
Need: Timely, Efficient, Balanced, Informed,
Predictable and Accountable Process, and
Institutions to Implement Policy
(Good Regulation)
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