The Management’s Discussion and Analysis (MD&A) dated February 22, 2007 should be read in conjunction with the audited Consolidated Financial Statements of TransCanada PipeLines Limited (TCPL or the Company) and the notes thereto for the year ended December 31, 2006.

TransCanada to Highlight Sustainable Long-term Growth at Investor Day; Dividend Expected to Increase 8 to 10 Per Cent Annually Through 2021