TransCanada: Contract Signed to Build Napanee Generating Station

Mon Dec 17, 2012 9:32am EST

* Reuters is not responsible for the content in this press release.

  CALGARY, ALBERTA, Dec 17 (MARKET WIRE) --
TransCanada Corporation (TSX:TRP) (NYSE:TRP) (TransCanada) announced
today it has signed a contract with the Ontario Power Authority (OPA) to
develop, own and operate a new 900-megawatt (MW) natural gas-fired power
plant. The facility will be located at Ontario Power Generation's Lennox
Generating Station property in the town of Greater Napanee in eastern
Ontario.

    "The contract signing will allow TransCanada to move forward with our
plans to provide a reliable source of electricity to the people of
Ontario," said Russ Girling, TransCanada's president and chief executive
officer. "We will take the necessary steps to ensure this is an
environmentally responsible project and will also focus on the safety of
the community, our employees and being a good neighbour." 

    Construction of this 900-MW facility will mean an investment of millions
of dollars in the local community that supports the creation of
approximately 600 construction jobs and an expected 25 long-term jobs
resulting in approximately $4 million in annual salaries and benefits.
The power plant will contribute to the local tax base each year,
providing officials with the ability to invest those dollars locally. 

    We are committed to building, operating and maintaining our power plants
safely. The safety of our employees, our facility neighbours and the
public are top priorities for TransCanada. Our corporate safety
performance is regularly amongst the highest in our industry. In
addition, this new, clean burning, natural gas fired plant would use
leading edge environmental technologies to control emissions. 

    The details of the contract are based on terms of the memoranda of
understanding that were signed in late September. The Napanee power plant
will act as a replacement facility for one that was planned in the
community of Oakville. It will operate under a 20-year power purchase
arrangement with the OPA that will generate stable earnings and cash flow
over the next two decades. 

    TransCanada currently operates the 683-MW Halton Hills Generating Station
in Ontario, has a 50 per cent ownership in the 550-MW Portlands Energy
Centre on the Toronto waterfront and has agreed to purchase nine Ontario
solar plants that would produce 86 MW of clean energy. We also own a
large portion of the Bruce Power nuclear facility - 49 per cent of Bruce
A and 32 per cent of Bruce B. Bruce Power consists of two generating
stations (Bruce A & B) with each station housing four nuclear reactors
with an overall power output of 6,200 MW.

    With more than 60 years' experience, TransCanada is a leader in the
responsible development and reliable operation of North American energy
infrastructure including natural gas and oil pipelines, power generation
and gas storage facilities. TransCanada operates a network of natural gas
pipelines that extends more than 68,500 kilometres (42,500 miles),
tapping into virtually all major gas supply basins in North America.
TransCanada is one of the continent's largest providers of gas storage
and related services with approximately 380 billion cubic feet of storage
capacity. A growing independent power producer, TransCanada owns or has
interests in over 11,800 megawatts of power generation in Canada and the
United States. TransCanada is developing one of North America's largest
oil delivery systems. TransCanada's common shares trade on the Toronto
and New York stock exchanges under the symbol TRP. For more information
visit: http://www.transcanada.com/ or check us out on Twitter
@TransCanada.

    FORWARD LOOKING INFORMATION 

    This publication contains certain information that is forward-looking and
is subject to important risks and uncertainties (such statements are
usually accompanied by words such as "anticipate", "expect", "would" or
other similar words). Forward-looking statements in this document are
intended to provide TransCanada security holders and potential investors
with information regarding TransCanada and its subsidiaries, including
management's assessment of TransCanada's and its subsidiaries' future
financial and operation plans and outlook. All forward-looking statements
reflect TransCanada's beliefs and assumptions based on information
available at the time the statements were made. Readers are cautioned not
to place undue reliance on this forward-looking information. TransCanada
undertakes no obligation to update or revise any forward-looking
information except as required by law. For additional information on the
assumptions made, and the risks and uncertainties which could cause
actual results to differ from the anticipated results, refer to
TransCanada's Management's Discussion and Analysis filed February 15,
2012 under TransCanada's profile on SEDAR at www.sedar.com and other
reports filed by TransCanada with Canadian securities regulators and with
the U.S. Securities and Exchange Commission.

Contacts:
TransCanada
Media Enquiries:
Shawn Howard/Grady Semmens
403.920.7859 or 800.608.7859

TransCanada
Investor & Analyst Enquiries:
David Moneta/Lee Evans
403.920.7911 or 800.361.6522
www.transcanada.com

Copyright 2012, Market Wire, All rights reserved.

-0-
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.