Hydro-Quebec Awards Six Projects to Cartier Wind Energy

by Lester Volt

Oct 4, 2004 Calgary Alberta - TransCanada Corp. (TSX: TRP NYSE: TRP) 50%-owned subsidiary, Cartier Wind Energy, has been awarded six projects by Hydro-Quebec Distribution representing a total of 739.5 Megawatts of electricity generation capacity.

The six projects are distributed in various communities of the administrative region of Gaspesie, Iles-de-la-Madeleine and the Regional County Municipality of Matane. As a result, the region will become a North American leader in wind turbine manufacturing and wind energy generation.

The projects will be commissioned between 2006 and 2012 and are located in the municipalities of Mont Louis (211.5 MW), Gaspe (100.5 MW), Carleton (109.5 MW), Baie des Sables (109.5 MW), Les Mechins (150 MW) and Cloridorme (58.5 MW).

Power purchase agreements are being negotiated with Hydro Quebec Distribution for each of the six facilities and are expected to be executed in December 2004. Each agreement will be subject to approval from Le Regie de L'Energie.

The six projects are expected to cost a total of approximately $1.2 billion.

Innergex II Inc. is a Quebec based power producer which specializes in the development, ownership and operation of renewable energy projects. The management of Innergex II initiated four years ago the development of wind power projects in Gaspesie and the Regional County Municipality of Matane. Since then, the company has worked actively with local communities and suppliers to structure sustainable projects that are environmentally and socially sound. Innergex Power Income Fund, a public income fund managed by the same group, owns eight hydroelectric power stations in Quebec and Ontario.

TransCanada owns, controls or is constructing nearly 4,700 megawatts of power and provides natural gas to Western Canadians and America through a 24,200 mile gas pipeline.

TransCanada shares (NYSE: TRP) were off five cents at $22.13 by 12:15am ET Monday. Direct competitors shares were mixed with Dynegy Inc. (NYSE: DYN) up 6 cents at $5.23. Dynegy Inc. said on Friday it had completed the sale of Illinois Power Co. to Ameren Corp. (NYSE: AEE), in a $2.3 billion deal. S&P upgraded Illinois Power's debt rating to investment grade Friday. Enbridge Inc. (NYSE: ENB) was down 12 cents at $41.83. No news could be attributed to the decline.

Source: Source Press