TransCanada ANR East Pipeline ProjectProviding transportation for emerging Utica supplies to access diverse markets in the Midwest, Ontario and Gulf Coast

ANR East Pipeline ProjectTransCanada U.S. Pipelines is developing the ANR East Pipeline Project to transport growing supplies of Appalachian Basin gas including the Utica shale to markets in the Midwest, Louisiana Gulf Coast, and Ontario. The project will provide affordable, clean-burning and abundant natural gas supplies to help meet the growing need for power generation, help support growth in the industrial and commercial business sectors, and provide ample supplies for LNG exports from the Louisiana and Texas Gulf Coast. The project will offer supply diversity to its growing demand base, and market diversity to Utica producers and potential shippers.

In late 2013 and early 2014, ANR Pipeline developed a series of projects utilizing existing capacity aimed at providing export routes of Appalachian supplies to the Midwest and Gulf Coast. These solicitations were extremely successful leaving ANR unable to accommodate all the interest shown. This project represents the next logical step in providing more connectivity between the Utica basin and the markets that ANR serves. The development of this project has been the result of the ever increasing need being expressed to ANR for a new economic and strategic growth project out of the Appalachian basin.

About TransCanada With more than 60 years’ experience, TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure including natural gas and oil pipelines, power generation and gas storage facilities.

We operate one of the largest natural gas transmission networks in North America — 42,500-miles (68,500-kilometres (km)) — tapping into virtually every major gas supply basin and transporting approximately 20 per cent of the continent’s daily natural gas supply. We are North America’s third largest provider of natural gas storage and related services with more than 400 billion cubic feet (Bcf) of storage capacity.

TransCanada’s natural gas pipeline assets include the 10,017-mile (16,121-km) ANR system which transports natural gas from primarily Texas and Oklahoma on its southwest leg and in the Gulf of Mexico and Louisiana on its southeast leg. The system extends to markets located mainly in Wisconsin, Michigan, Illinois, Ohio and Indiana. ANR also connects with other natural gas pipelines, providing access to diverse sources of North American supply. ANR also owns and operates regulated underground natural gas storage facilities in Michigan with a total capacity of 250 billion cubic feet (Bcf).

The 2,639-mile (4,247-km) Keystone Pipeline system transports almost one-quarter of Canada’s crude oil exports to the United States. It has safely delivered more than 590 million barrels of Canadian crude oil to markets in the U.S. since it began operation in July 2010. Keystone now includes the Gulf Coast extension, which began transporting crude oil from Cushing, Oklahoma to refineries on the Gulf Coast of Texas in January 2014, providing these refineries with a more stable and less expensive source of oil from U.S. and Canadian producers.

Project ScopeThe ANR East Pipeline Project will include the construction of a new pipeline originating at the Cadiz Gas Plant in southeastern Ohio and terminating at the ANR Joliet Hub in Lake County, Indiana. The new build will consist of approximately 320 miles of large diameter, 1440 psig MAOP pipeline and up to 140,000 HP of compression. It is anticipated to have a capacity between 1.2 and 2.0 Bcf/d, depending upon contractual commitments, project scope and final design. In addition to receipt points at Cadiz, the ANR East Pipeline Project will also provide receipt points at Tuscarawas with Dominion Transmission (TL-400) and Tennessee Gas Pipeline. The project will be designed to deliver gas into ANR’s ML 3 tariff zone at Defiance and into ANR’s Zone ML7 at the Joliet Hub in Lake County, Indiana.

MI

IN

PA

OH

Chicago

Bridgman Vector

TrunklinePanhandle

DefianceNiSourceANR

Joliet Hub

Willow Run

Dawn

Farwell

Leesville

Cadiz

Clarington

Marcellus

Utica

PA

OH

WV

Leesville

Cadiz

Clarington

OptionalBuild

Project Receipt LocationsThe project will commence from a point at or near the Cadiz Processing Plant Tailgate. The project route will cross Tennessee Gas Pipeline and Dominion Transmission at Tuscarawas and, subject to shipper interest, receipt points will be provided to either or both pipelines.

Optional Receipt Locations Pending customer interest, the project can be extended from the Cadiz Gas Plant to the Clarington Hub where the following additional pipelines could be accessed:

• Dominion Transmission (TL-377)

• EQT Ohio Valley Connector

• Eureka Hunter Midstream

• PVR Utica Ohio River Project

• Texas Eastern M2 Zone/OPEN Project

This extension would require an additional 34 miles of pipeline and compression with a design capacity between 0.6 and 1.2 Bcf/d.

ANR

ANR East Pipeline Project

Great Lakes

TCPL

Delivery Point

Receipt Point

Gas Pipeline

Gas Plant

Access to Markets…

Midwest offers power and industrial demand growth, strong winter heating loads, and significant storage injection demand.

Ontario is a key market outlet of Great Lakes with stable gas power generation and summer storage refill demand; projected significant power sector growth post-2020.

Louisiana offers significant industrial demand, LNG exports will almost double the statewide demand by the end of the decade.

0

2000

4000

6000

8000

10000

12000

14000

Industrial

Power

R&C*

Storage

2014 2017 2020 20230

500

1000

1500

2000

2500

3000

3500

4000

Industrial

Power

R&C*

Storage

2014 2017 2020 20230

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

LNG Exports

Industrial

Power

R&C*

Storage

2014 2017 2020 2023

Chicago

CrownPoint

St. John

Joliet

Sandwich

NICORNGPLNGR

Horizon

MidwesternAllianceGuardian

Northern BorderPeoples

ConstellationPPL University ParkCrete Power Plant

Vector

NIPSCO

Bridgman

Delivery Locations The Project will interconnect with ANR in two different Tariff Zones. At Defiance, the Project will interconnect to ANR’s ML3 Tariff Zone. From Defiance, ANR has cost competitive expansions to facilitate deliveries to ANR’s at Defiance south to its Southeast Head Station at Eunice, Louisiana, and north to MichCon at Willow Run, Michigan. ANR can also provide transportation services to and from its vast array of storage facilities in northern Michigan via seamless arrangements with its affiliate Great Lakes Gas Transmission.

Interconnections can be made available on 3rd party pipelines that cross the Project route, such as NiSource, Vector, Trunkline, and Panhandle, and with LDC territories including Consumers, NIPSCO and NICOR. ANR can also provide up to 850 MMcf/day of transportation service to Dawn, Ontario via seamless arrangements with its pipeline affiliates Great Lakes Gas Transmission and TransCanada Pipeline. These alternatives will be directed by customer interest.

Why ANR?ANR and Great Lakes are well connected to existing markets and provides easy access to multiple liquid pricing hubs. ANR’s footprint accesses significant demand growth potential as well as on-system storage market opportunities. In addition to markets in the Midwest and Ontario, existing Southeast Mainline capacity provides access to significant growth opportunities in the Gulf Coast, and Southwest Mainline capacity for deliveries west and south.

ANR and Great Lakes offers more than 27 Bcf/d of meter capacity in the Midwest and into Canada as well as 6.5 Bcf/d in Louisiana. Additional meter capacity is being developed for deliveries of supply for LNG exports in south Louisiana.

Great Lakes

Perryville

Consumers Michcon

ANR Southeast

ANR Southeast

MichiganLDCs, StorageWisconsin, Minnesota LDCs

Strong winter heating load

Chicago Joliet HubMajor U.S. supply aggregation and liquid trading hub

Northern Illinois, IndianaHeavy LDC load

Power GenerationConnected to over 40 power plants across ANR and Great Lakes

Mississippi River CorridorIndustrial Markets

LNG Exports

Dawn Hub

Utica

ANR

LA

OH

INIL

MI

ONMN

WI

Source: 2014 TransCanada Spring Outlook

Midwest Demand – Mmcf/d Ontario Demand – Mmcf/d Louisiana Demand – Mmcf/d

* Residential and Commercial

Compressor Station

ANR Joliet Hub

July 2014 - TransCanada ANR East Pipeline Project

Key Interconnects on ANR and Great LakesMichigan Markets Consumers Energy, MichCon, SEMCO, MGU, ANR Storage, Bluewater Gas Storage, Detroit Edison (via SEMCO), MCV, WEPCo

Northern Illinois/Indiana LDC Load Illinois Power, NIGAS, NIPSCO, Peoples

Chicago Joliet Hub Pipeline Interconnects Alliance, Guardian, Horizon, Northern Border, Midwestern, NGPL, NICOR, NIPSCO, Peoples, Vector

Minnesota Markets Minnesota Energy Resources, City of Duluth, Otter Tail Power

Wisconsin ANR LDC Load Alliant/Wisconsin Power & Light, Madison Gas & Electric, Wisconsin Gas, Wisconsin Electric, Wisconsin Public Service, NSP/Xcel via Great Lakes, Superior WL&P

Louisiana Interstate Pipeline Interconnects ANR Eunice Headstation, Florida Gas Transmission, SONAT, Transco, TGP, Texas Eastern, Gulf South, Trunkline

Mississippi River Corridor Industrial Markets Bridgeline, Acadian, Cypress, LIG

Gulf Coast LNG Export Facilities

Ontario Markets (via Great Lakes) TransCanada @ St. Clair Via GLGT, Enbridge @ Corunna via ANR Link Line, Union @ Dawn via TransCanada or Enbridge

Market Hubs ANR and Great Lakes are attached to trading hubs that offer price liquidity and price transparency – Chicago, Michcon, Consumers, Perryville, ANR Southeast, ANR Southwest

Foundation ShippersParties interested in signing up as a foundation shipper to the project must execute a Precedent Agreement prior to ANR holding a Binding Open Season. Additional information about the ANR East Pipeline Project is available subject to execution of a Confidentiality Agreement. Both a Confidentiality Agreement and Precedent Agreement are available upon request. The Precedent Agreement must be executed by a duly authorized representative and mailed, emailed or faxed to:

717 Texas Street, Houston, TX 77002-2761 Attn: Daniel Andruccioli, Business Development daniel_andruccioli@transcanada.com Office 832.320.5451 Fax No. 832.320.6451

All Media Inquiries Attn: Gretchen Krueger U.S. & Mexico Communications gretchen_krueger@transcanada.com Mobile: 832.389.6473 Media Line: 1.800.608.7859

Other Contact InformationJohn Hampton – Business Development john_hampton@transcanada.com Office 832.320.5424 Cell 281.635.6815

Erik Anderson – Marketing erik_anderson@transcanada.com Office 832.320.5606 Cell 248.231.0564

Jay White – Marketing jay_white@transcanada.com Office 832.320.5393 Cell 713.899.3394

Business Development Fax 832.320.5707 Marketing Fax 832.320.5567 TransCanada U.S. Pipelines 832.320.5000