TransCanada s GTN System Notice of Available Firm Service Subject to a Right of First Refusal January 8, 2009

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Jocelin Powell
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1 TrasCaada s GTN System Notice of Available Firm Service Subject to a Right of First Refusal Jauary 8, 2009 TrasCaada s GTN System ( GTN ) posted otices o its Iteret website o Jauary 6, 2009 idicatig the availability of 20,000 Dth/d of aual, log-term firm capacity, subject to a Right of First Refusal ( ROFR ). I accordace with Sectio 33.2 of its FERC Gas Tariff, Third Revised Volume No. 1-A ( Tariff ), GTN will commece a five-day (5) bid period for this capacity o Jauary 8, Capacity Path Start Date Rate Available MDQ (Dth/d) Kigsgate, B.C. to Mali, OR 1/1/2010 FTS-1 20,000 Timelie (all times are PDT) 8:00 a.m. Thursday, Jauary 8, 2009 Bid period commeces 8:00 a.m. Thursday, Jauary 15, 2009 Bid period closes 12:00 p.m. Thursday, Jauary 15, 2009 Bidder(s) with acceptable bids ad existig capacity holder otified of acceptable bids 12:00 p.m. Thursday, Jauary 29, 2009 Deadlie for existig capacity holder to exercise ROFR 5:00 p.m. Thursday, Jauary 29, 2009 Capacity awarded to wiig bidder(s) Biddig Procedures Bidders must sed the attached Bid Form to Matt Story at GTN s Portlad office. Faxed bids should be set to (503) by 8:00 a.m. (PDT) Thursday, Jauary 15, Bids ot received prior to the close of the bid period will ot be cosidered. Each bid must specify the quatity of capacity desired i Dth/d (delivered), the term of service ad the reservatio rate. The reservatio rate must be expressed as a percetage (%) of the maximum applicable FTS-1 reservatio charges (icludig both mileage-based ad o-mileage-based compoets).

2 Rate Table Curretly effective Rate Schedule FTS-1 rates are show i the table below. For illustrative purposes, the 100% load factor equivalet daily rates for the Kigsgate to Mali path are also show. Kigsgate to Mali Reservatio Charges Daily Resv. Charges ( miles) Base Rate o-mileage $ /Dth $ /Dth Base Rate mileage $ /Dth-Mile $ /Dth Kigsgate to Mali Delivery Charges Delivery Charges ( miles) Delivery $ /Dth-Mile $ /Dth ACA $ /Dth $ /Dth Total Uit Rate (100% Load Factor Equivalet) $ /Dth Shippers will be resposible for the percetage (%) of the approved FTS-1 reservatio charge reflected i their bid that is i effect durig the term of the cotract. I additio, the full approved delivery rate ad ACA will be applicable to all trasportatio service, whether or ot the bidder is willig to pay 100% of the Reservatio charges. Further, successful bidders must provide fuel i-kid per GTN s Tariff. Biddig Policy 1. The reservatio rate must be expressed as a percetage (%) of the FTS-1 100% load factor equivalet reservatio charge for the Kigsgate, BC to Mali, OR path, iclusive of both mileage-based ad omileage-based compoets for the term bid. 2. All bids submitted ad ot withdraw i writig prior to the close of the bid period are bidig upo the bidder ad will be deemed to idicate the bidder s agreemet to pay all applicable charges for the full quatity ad term of the bid. Award of capacity by GTN to bidder i accordace with such bid creates a bidig ad eforceable agreemet betwee GTN ad such bidder pursuat to the form of Firm Trasportatio Service Agreemet as set forth i GTN s Tariff. GTN ad the bidder shall further documet the agreemet by executig a Firm Trasportatio Service Agreemet reflectig the bid terms withi five (5) days of award of the bid; provided, however, failure of either party to execute such documetatio shall ot modify the agreemet betwee GTN ad the bidder created through award of the bid by GTN. 3. Bidders are limited to oe (1) bid per package per Capacity Bid Form. Additioal bids o a specific package must be made with additioal Capacity Bid Forms. 4. I the evet of a NPV tie, GTN will prorate the capacity per paragraph 33.2 of GTN s Tariff. 5. Bidders must specify the term of service, the maximum amout of capacity (Dth/d) they are willig to accept, ad also the miimum amout of capacity (Dth/d) they are willig to accept i the evet that the capacity awarded is less tha the available MDQ. 6. Recourse rate ad percetage of recourse rate cotracts may be affected by rate adjustmets from time to time cosistet with the applicable rates reflected i GTN s FERC Gas Tariff. 7. O Thursday, Jauary 15, bidders will be otified via fax cofirmatio that they have a acceptable bid subject to the existig capacity holder s ROFR decisio. Upo otificatio by GTN, the existig capacity holder will have up to te (10) busiess days to exercise its ROFR.

3 Bid Evaluatio 1. GTN reserves the right to reject bids that are for less tha the maximum applicable FTS-1 reservatio charge. 2. GTN reserves the right to reject ay ad all bids that do ot follow the istructios set out i this Bid Package, or where the bidder s itetios are ot clear to GTN. 3. Acceptable discouted bids will be selected o a NPV basis as outlied below: Valuatio of Bids The bid(s) with the greatest ecoomic value will be the bid(s) with the highest et preset value ("NPV") based o the reservatio charge over the term of service specified i the request. If the ecoomic values of separate bids are equal, the service shall be offered to such requestors o a pro-rata basis. Depedig o the term legth of each bid submitted, the followig NPV formulas will be used for evaluatio purposes. A) Bid term legth is greater tha or equal to oe (1) year, but less tha three (3) years (1 + i ) -1 Preset Value = P * R * i (1 + i ) where: P = percet of the rate or charge that the Shipper is willig to pay. R = Rate or charge calculated as: The applicable maximum authorized reservatio charge(s) per Dth i effect at the time of the bid for service. i = FERC's aual iterest rate divided by 12. = umber of periods (moths) for which the bidder wishes to cotract. B) Bid term legth is three (3) years or more (1 + i ) -1 Preset Value = P * R * (1 - PD) * i (1 + i ) where: P = percet of the rate or charge that the Shipper is willig to pay. R = Rate or charge calculated as: The applicable maximum authorized reservatio charge(s) per Dth i effect at the time of the bid for service. PD = Shipper s probability of default for the applicable bid term /1. Cosistet with Paragraph 18.3 of GTN s tariff, probability of default is based upo Shipper s ratig for uehaced seior usecured debt i = FERC's aual iterest rate divided by 12. = umber of periods (moths) for which the bidder wishes to cotract. /1 For the purpose of evaluatig bids with term legths greater tha 15-years, the probability of default (PD) modifier applicable to each ratig i year 15 will be used for each successive year.

4 Probability of Default Table Cumulative Average Default Rates By Ratig Modifier, (%) Time horizo (years) Ratig AAA AA AA AA A A A BBB BBB BBB BB BB BB B B B CCC/C Ivestmet grade Speculative grade All rated Sources: Stadard & Poor's Global Fixed Icome Research ad Stadard & Poor's CreditPro.

5 Credit Requiremets Prospective shippers must establish creditworthiess with GTN prior to the close of the biddig period based upo the creditworthiess stadards described i Paragraph 18.3 of GTN s Tariff. Questios regardig credit qualificatio should be directed to Ke Nichols at (503) or Jeifer Schag at (503) To esure timely qualificatio, GTN ecourages bidders to submit credit iformatio as soo as possible. GTN will reject the bid(s) of ay party that does ot meet GTN s creditworthiess stadards by the close of the biddig period. Upstream ad Dowstream Arragemets Trasportatio arragemets o upstream ad dowstream pipelie systems are the resposibility of each prospective shipper. Questios regardig service o those systems should be addressed to the respective pipelie or LDC. PG&E Paul Alliegro (415) Tuscarora Jim Schoee (713) TrasCaada NGTL System ad Foothills Zoe 8 Bruce Newberry (403) Questios Prospective shippers may address questios to the followig GTN persoel: Calgary: Rady Huter (403) Portlad: Dave Sloa (503) Housto: Jim Schoee (713) Sa Fracisco: Bevi Hog (925)

6 TrasCaada s GTN System Notice of Available Firm Service Subject to a Right of First Refusal Jauary 8, 2009 Capacity Bid Form Maximum Daily Quatity (MDQ) Bid Path Start Date Ed Date % FTS-1 Reservatio Charge Bid MDQ Bid MQ (1) (2) (3) (4) 20,000 Kigsgate B.C. to Mali, OR 1/1/2010 (1) Bid term must spa a miimum of 365-days. (2) Reservatio rate must be expressed as a percetage (%) of the FTS-1 100% load factor equivalet reservatio charge for the Kigsgate, BC to Mali, OR path, iclusive of both mileage-based ad o-mileage-based compoets for the term bid. (3) MDQ: Maximum Daily Quatity (Dth/d). (4) MQ: Miimum Quatity (Dth/d) Bidder will accept if awarded capacity. Compay: Paret Corporatio: Name: Title: Sigature: Telephoe Number: Fax Number: Fax bids to Matt Story at (503) By 8:00 a.m. (PDT) Thursday, Jauary 15, 2009 Hard copy bid forms ca be set to: TrasCaada s GTN System 1400 SW Fifth Ave., Suite 900 Portlad, OR ATTN: Matt Story

Receipt Date. You must answer all questions in ink and the application must be signed and notarized, or it will be rejected.

Receipt Date. You must answer all questions in ink and the application must be signed and notarized, or it will be rejected. Office of the New York State Comptroller New York State ad Local Retiremet System Mail completed form to: NEW YORK STATE AND LOCAL RETIREMENT SYSTEM 110 STATE STREET - MAIL DROP 5-9 ALBANY NY 12244-0001