focusing our efforts on growing our core businesses, divesting non-core assets, reducing our debt and strength- ening our balance sheet, this is a positive development. We continue to maintain ‘A’ category ratings with a stable outlook on our senior unsecured debt. Our credit rating, combined with our financial strength and flex- ibility, positions us to move quickly to acquire strategic assets. Our approach to growth will be opportunistic but deliberate. Why is TransCanada – traditionally known as a natural gas pipeline company – moving aggressively into power? Q Over the past three years, TransCanada has undergone significant change. How has this affected your workforce? Q As a key player in the energy industry, what is TransCanada’s position on Climate Change? Q A natural synergy exists between our pipeline and power businesses. Both businesses are capital intensive and require similar technical expertise. Both are driven by similar fundamentals – 40 to 50 per cent of the pro- jected increase in demand for natural gas comes from power generation projects. In the current environment, with power offering higher returns than our Canadian regulated pipelines, we foresee strong earnings con- tributions from power developments and acquisitions. A The transformation of the NOVA Gas Transmission and TransCanada organizations – two diversified, interna- tional companies with long-established corporate cultures – into one North American energy company posed numerous challenges. We had to make many difficult decisions that impacted our employees, yet we were able to successfully face those challenges through the commitment of our talented workforce. With the most significant organizational changes now behind us, we are committed to fostering a working environment that inspires excellence and positions us as one of the top employers in Canada. A Climate Change is a complex issue that TransCanada takes very seriously. We have made considerable progress reducing our greenhouse gas (GHG) emissions as part of a larger effort to improve the combustion efficiency of our pipeline compression and power generation equipment. A We’re continually working to evolve a new culture for TransCanada, strengthening the alignment of our human resource practices with our strategy, our company’s values and our strong resolve to be competitive and create value for our customers and shareholders. TransCanada supports voluntary efforts to reduce GHG emissions and we've made exceptional progress over the past five years. Our voluntary efforts are focused on technical and operational improvements – we think oper- ating initiatives that reduce GHG at the source are more important than other mechanisms such as international emissions trading and offset credits. We are encouraging the Canadian Government to work closely with our North American Free Trade Agreement partners to develop North American solutions that focus on emission reductions at the source. Air quality is an equally important issue, particularly in urban environments. TransCanada is working to minimize emissions of sulphur oxides (SO$_{x}$), nitrogen oxides (NO$_{x}$) and other pollutants by monitoring our oper- ations more closely and by installing cleaner-burning equipment where it will make a difference. Combustion efficiency is our third important issue and a key element of our greenhouse gas and air quality initiatives. More efficient pipeline compressors and power generators consume less fossil fuel, conserving valu- able energy resources and reducing greenhouse gas and other emissions. TransCanada is committed to a leadership role in combustion efficiency and we look forward to continuing progress in the near term and over the longer term. TRANSCANADA 6 Q & A