1. Cherry Point Cogeneration Project Overview Presented to
NWPPC Cogeneration Round Table June 24, 2003
2. TransCanada Corporation
Competitively positioned in natural gas transmission &
power generation services
$20 billion in Assets ($C at Dec 31, 2001)
A- Credit Rating (S&P)
TRP trades on the TSE and NYSE
Headquartered in Calgary, Alberta, Canada
A leading North American energy company
3. TransCanada Corporation In North America, TransCanada ships
the largest volumes the longest distance in the coldest weather
TransCanada Williams Kinder Morgan PG&E El Paso Duke Energy
Enron MidAmerican
4. TransCanadas Power Portfolio
19 Plants, 3 PPAs
4,150 MW operational
1,770 MW in development
* Long Term PPAs Bear Creek 80MW MacKay River 165MW Williams Lake
66MW Sundance A&B* 913MW Redwater 40MW Carselan d 80MW Cancarb
27MW Nipigon 40MW Calstock 35MW Kapuskasing 40MW Tunis 43MW
Sheerness* 100MW North Bay 40MW Curtis Palmer 60MW Castleton 64MW
Ocean State 560MW Bruce Power LP 1500MW ManChief 300MW Cherry Point
720MW Becancour 550MW Portlands 500MW - Active Plant - In
Development - Market Area
5. TransCanadas Business Drivers
Advantaged Assets relative to CC
Similar Economy of Scale
Similar Dispatch Flexibility
Lower Variable Costs
Responsive to Market
Right Timing
Right Size
Right Location
Stable, Low Risk Growth
Long Term contracts with credit-worthy counter parties
No surprises
6. Cherry Point Project Overview
720 MW Combined Cycle Cogeneration Plant
3 F-Class gas turbines
1 Steam Turbine
Fully Dispatchable (Back-up Boilers)
Host Site: BP Cherry Point Refinery
225,000 bbl/d state-of-art refinery; Solomon top quartile
performer
BP North America: AA credit
Project Structure
Long term steam and power to BP Refinery
450 MW of power to 3-P contracts
Balance of output to TC trading operations
Seattle Cherry Point Vancouver BP Cherry Point Refinery Proposed
Cogeneration Plant
7. Cherry Point Project Overview (cont.)
Exclusivity: Q4, 2002
EPC Contractor Selected: Q4, 2002
Site Release: Q4, 2003
Third party power purchase agreements (PPAs)
EFSEC Permit
Firm Transmission Agreements
Commercial In-Service: Q2, 2006
Project Schedule:
8. Cherry Point Advantages Existing Infrastructure
9. Cherry Point Advantages Minimize Environmental Impact
Reduce air emissions from Cherry Point complex
Reduce water withdrawal from Nooksack River
No new pipelines or transmission lines required
Build on existing industrial site
Cherry Point Project Rendering looking SE from Grandview Road
10. Cherry Point Advantages Competitive Price
Heat rate advantage ~ 0.7 MMBtu/MWh better than CC Savings of
$2.80/MWh 1
Ferndale pipeline tolls ~ 50% lower than Northwest Pipe Savings
of $1.40/MWh
Project can be dispatched off-line to take advantage of low
hydro prices
Building in down market; e quipment and EPC costs at lowest
point in years.
1 Based on $4.00 /MMBtu gas price
11. PURPA - Qualifying Facility Status Cherry Point
Cogeneration Project Fuel Input 5440 MMBtu/hr Useful Thermal Output
700 MMBtu/hr Useful Power Output 720 MWh or 2450 MMBtu/hr Useful
Thermal Energy Purpa Efficiency Cherry Point 13% 51% Purpa
Threshold >5% = >45% Meets Threshold
12. Cherry Point is an Advantaged Generation Asset Cherry Point
Layout, looking NE
Heat rate advantages vs. stand-alone CC
Dispatchable plant
Economy of scale
Gas supply infrastructure advantages
Strong, committed project proponents
Cogen emissions offset by refinery reductions
Water cooled/water reuse plan
The economy of scale and flexibility of a large combined cycle
plant with a cogeneration heat rate
13. The Home Stretch - Ensuring Success!
Remaining basic success factors reside with BPA:
Transmission
Market Clarity
BPAs role as resource provider post-2006
Price of BPA hydro power post- 2006
Innovative solutions also reside with BPA:
Return of Canadian Entitlement
Integration and dispatch of Cherry Point for BPA preference
customers