The Management’s Discussion and Analysis dated March 1, 2005 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, 2004. Amounts are stated in Canadian dollars unless otherwise indicated.

This document provides an overview of the key factors that have influenced how TransCanada has performed in its recent past, its financial condition, and its future prospects.

This document is a comprehensive report on a company's financial activities throughout the preceding year.