TransCanada U.S.Pipelines Central O.E.B. STAR Presentation 5/20/2008

2 ANRPL and GLGT Transportation Tariff and ANR Storage Company Storage Tariff Common Carrier with standardized tariff  Regulator approved general terms and conditions  Conditions of service are generally not negotiable  Service duration and price are negotiable  Conform to industry standards developed by NAESB Basic service entitlements include:  Flexible receipt & delivery points (transportation only)  Segmentation (transportation only)  Capacity assignment through capacity release program  Service continuation - Right of First Refusal  Service termination - Pre-granted abandonment

3 ANRPL, GLGT and ANR Storage Co. - Transportation and Storage Service Access Open access to capacity and services  Open seasons with competitive bidding for constrained capacity  FERC Standards of Conduct for affiliated and non- affiliated transactions Compliance facilitated through reporting requirements which provide transparency  NAESB standardized reporting of service availability  On-line reporting - Index of Customers and day-to-day details  Filing of non-standard agreements  Annual reporting to regulator:  Form 2 & 2A (Comprehensive financial & operational data)  System Capacity Report, Flow Diagrams, etc.

4 Why are standardized tariffs required? Features other than price can dramatically affect the value of a service  Receipt and delivery point changes, release or assignment rights, renewal rights, segmentation, priority of service, etc. Ensures customers receive uniform service Market participants know what they are purchasing Discrimination can be identified

5 Answers to Board Staff Question #6 ANRPL and GLGT open seasons are consistent with the criteria set forth on the Board’s Appendix A Under the FERC approach, the requirement is to allocate capacity (both transportation and storage) in a not unduly discriminatory manner (open access).  Open seasons are widely accepted as one method to fulfill this requirement.  Selling capacity on a first-come first-served basis may also provide open access. Check and balance in complaint procedures and reporting requirements

6 Answers to Board Staff Question #6 a) Expansion open seasons generally 45 to 60 days  often preceded by non-binding open seasons to gauge market interest  longer timeframe required to secure supply, upstream/downstream arrangements, financing, etc.  information requirements, special conditions, and bid evaluation criteria are stated in the open season solicitation

7 Answers to Board Staff Question #6 b) Existing capacity open seasons follow NAESB capacity release guidelines Available capacity posted on internet website Minimum three-day open season for long-term capacity One-hour (noon to 1PM CST) for short term capacity

8 Answers to Board Staff Question #6 b) (con’t) NAESB guidelines for capacity release auctions  Developed by industry participants  Adopted by reference in FERC tariffs  Uniform minimum bid requirements for all capacity release postings  Where bid criteria may vary (e.g., winning bid evaluation method), disclosure requirement  Industry standard for capacity and expansion auctions

9 Answers to Board Staff Questions # Standard service contracts are an effective way to ensure open access for similarly situated shippers for both transportation and storage. Appropriate reporting requirements, including an Index of Customers and transactional reporting, and filing of non-conforming agreements, ensures the transparency that is required for market participants to identify abuses Rules should apply to all market participants with the ability for the regulator to waive or suspend requirements for small operators or in situations it deems appropriate. NAESB Standards represent a large body of work already completed by industry participants, and reliance on these standards is a reasonable starting point