TRANSCANADA

TRANSCANADA

February 25, 2005 14:10 ET

Cartier Wind Energy to Become Quebec's Largest Wind Energy Producer


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: TRANSCANADA

NYSE, TSX SYMBOL: TRP

FEBRUARY 25, 2005 - 14:10 ET

Cartier Wind Energy to Become Quebec's Largest Wind
Energy Producer

LONGUEUIL, QUEBEC--(CCNMatthews - Feb. 25, 2005) - TransCanada (TSX:TRP)
(NYSE:TRP):

Cartier Wind Energy is pleased to announce that long term Electricity
Supply Contracts have been signed today with Hydro-Quebec Distribution
for 740 megawatts (MW) of wind power projects located in the
Gaspesie-Iles-de-la-Madeleine region and the Regional County
Municipality of Matane. With these agreements, Cartier Wind Energy will
become the largest wind energy producer in the province of Quebec. The
assets related to the wind power projects are indirectly co-owned by
TransCanada Corporation (62%) and Innergex II Income Fund (38%).

This signing follows the October 2004 announcement of Cartier Wind
Energy's successful bid in response to Hydro-Quebec Distribution's call
for tenders. The long-term Electricity Supply Contracts will be
presented to the Regie de l'energie for approval.

"We are pleased to execute these agreements which are the result of four
years of work and we are thankful to the community of Gaspesie for
supporting these important green energy projects," said Gilles
Lefrancois, Chairman of the Board of Cartier Wind Energy.

These projects represent an investment of more than $1.1 billion and
will be commissioned beginning in 2006 and continue up to 2012. The
projects are Baie des Sables (109.5MW), Anse a Valleau (100.5MW),
Carleton (109.5MW), Les Mechins (150MW), Montagne-Seche (58.5MW) and
Gros-Morne I and II (211.5MW). The projects' total annual production
will represent 2.3 terawatthours (TWh), the energy required to meet the
electricity needs of about 150,000 households in the province of Quebec.
Cartier Wind Energy has already begun the environmental permitting
process for the 2006 projects in close collaboration with local
communities and suppliers, and has received a positive response from the
regional population following the introduction of the projects.

TransCanada Corporation Profile

TransCanada is a leading North American energy company, focused on
natural gas transmission and power services. TransCanada's network of
approximately 41,000 kilometres of pipeline transports the majority of
Western Canada's natural gas production to the fastest growing markets
in Canada and the United States. Including TransCanada's interest in
Cartier Wind Energy, TransCanada owns, controls or is constructing more
than 5100 MW of power - an equal amount of power can meet the needs of
about 5.1 million average households.

Innergex II Income Fund Profile

Innergex II Income Fund ("Innergex II") is a private open-ended trust
that was created in 2001 to build, own and operate hydroelectric power
plants and wind farms in North America. In addition to being a partner
in Cartier Wind Energy, Innergex II owns, operates and develops more
than 300 MW hydroelectric projects. Innergex II has executed a
cooperation agreement with Innergex Power Income Fund ("Fund"), a public
open-ended income trust created in July 2003 and listed on the Toronto
Stock Exchange (IEF.UN), pursuant to which any project developed by
Innergex II is offered to the Fund before being offered to any other
third party. The Fund indirectly owns nine hydroelectric power stations
in Quebec, Ontario and Idaho, USA.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Cartier Wind Energy
    Mr. Gilles Lefrancois
    Chairman of the Board
    (450) 928-2550, ext. 243
    Email: info@innergex.com
    or
    Mr. Michel Letellier
    Vice President
    (450) 928-2550, ext. 227
    Email: info@innergex.com
    Website: www.innergex.com
    or
    TransCanada
    Media Inquiries
    Kurt Kadatz/Hejdi Feick
    (403) 920-7859 or (800) 608-7859
    or
    Investor & Analyst Inquiries
    David Moneta
    (403) 920-7911
    Website: www.transcanada.com