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.

Located in the community of Grande Prairie, Alberta, Bear Creek Cogeneration Plant produces up to 100 megawatts of electricity to both Weyerhaeuser’s Grande Prairie Pulp and Sawmill and Alberta’s competitive electricity market.

The Tamazunchale Pipeline is a 370 km (230 miles) natural gas pipeline serving communities from the East Coast of Mexico to Central Mexico.

From end to end, the Tula Pipeline Project is 287 km (178 miles) in length and will deliver fuel from Tuxpan, Veracruz, to communities in the states of Puebla and Hidalgo. The pipeline has the capacity to carry 886 million cubic feet per day of natural gas.

TC Vets Employee Inclusion Network member Andrea Thueme reflects on her military service, family legacy and the significance of Nov. 11.

The Foothills Natural Gas Pipeline System ships WCSB natural gas to the U.S. border for export.

The Redwater Cogeneration Plant, located at Williams Energy Canada Fractionation and Storage Plant in Redwater, Alta., has provided the province with approximately 46 megawatts of electricity since 2001.

MacKay River is an industrial cogeneration project that is situated on Suncor’s MacKay River oil sands development, 60 km (37 miles) west of Fort McMurray, Alta.