Results of Vote and Press Release

1. TCPL has sent out a press release announcing the S&P Settlement attached=
=20
below.=20

2. I have also attached the final version of the agreement from which a mo=
re=20
detailed MOU is to be worked out over the next few weeks. =20

3. We will want to pay particular attention to the IT floor and the detail=
s=20
of how the marginal fuel test is set between 80%-120%.

4. Taking advantage of the AOS credit will mean shippers will have to=20
nominate and schedule IT services. This would require extra operational=20
resources to be dedicated to the accounts we control (Enron Canada,=20
Petro-Canada, Sunoco, Papier-Masson and Aberfoyle).

5. Below is a projection of the illustrative toll for 2001 and 2002, based
on this agreement.

Illustrative Toll

For illustrative purposes, the Eastern Zone Toll is $1.115 / GJ in 2001
and $1.173 / GJ in 2002. The tolls are based on 9.61% return on equity,
30% equity
thickness, $15 Million Miscellaneous Discretionary Revenue and known
allocation units as at April 2000. The increase to the Eastern Zone Toll
in 2002 over 2001
is mainly due to increased depreciation rate (approximately 1.5?) and no
regulatory amortizations (approximately 4.0? as this was a $79mm credit
in 2001)..

Under this allocation unit scenario, sensitivities for changes to ROE
and equity thickness on the Eastern Zone Toll are as follows:

100 basis point change in ROE changes the Eastern Zone Toll by
approximately 2.7?/GJ.
5% change in equity thickness changes the Eastern Zone Toll by
approximately 3.4?/GJ

6. This is how the stakeholders have lined up in supporting the document::

RESULTS OF VOTE ON STATEMENT OF PRINCIPLES
FEBRUARY 20, 2001

SUPPORT

? Government of Ontario
? CAPP
? BP Canada Energy
? ProGas
? Enbridge Consumers Gas
? Hydro Quebec
? Union Gas
? GMi
? TransCanada Gas Services
? Government of Quebec
? TransGas
? IGUA
? Government of Alberta

WILL NOT SIGN BUT WON=01,T OPPOSE

? Mirant
? Nexen
? TQM
? PetroCanada
? Imperial
? PanCanadian
? Northland Power
? Enron

RESERVE JUDGMENT

? El Paso
? NUG group
? Coral

DO NOT SUPPORT

? PG&E

STILL ASSESSING

? Centra Manitoba
---------------------- Forwarded by Kevin Heal/CAL/ECT on 02/22/2001 10:08 =
AM=20
---------------------------

"Debbie Harris" <debbie_harris@transcanada.com< on 02/22/2001 09:57:34 AM
To: Adam White <adam_white@transalta.com<, Albert Stortchak=20
<stortcal@est.gov.on.ca<, Bill Wible <bill_wible@iroquois.com<, Bob Fraser=
=20
<bobfraser@aec.ca<, Brian Howell <behowell@interlog.com<, Brian Ridley=20
<bridley@hydro.mb.ca<, Brian Troicuk <troicuk@capp.ca<, Brian White=20
<bswhite@ceg.com<, Brian Woods <brian_woods@email.mobil.com<, Cheryl Worthy=
=20
<worthycg@bp.com<, Chuck Baumgart <cbaumgart@renaissance.ca<, Debbie White=
=20
<debbwhit@marathoncanada.com<, Doug Holgate <doug.holgate@husky-oil.com<,=
=20
Frank Brennan <frank.brennan@cgc.enbridge.com<, Gilles Favreau=20
<favreau.gilles@hydro.qc.ca<, Ken Hadley <ken_hadley@pcp.ca<, Kevin Heal=20
<kevin.heal@enron.com<, Kurt McKnight <kmcknight@uniongas.com<, Lisa McMaho=
n=20
<lisa.mcmahon@et.pge.com<, Lyne Mercier <lmercier@gazmet.com<, Martin Imble=
au=20
<mimbleau@gazmet.com<, mike verwegen <mverwegen@uniongas.com<, Mike Stedman=
=20
<mstedman@uniongas.com<, Murray Samuel <murray_samuel@transcanada.com<,=20
Robert Agnello <ragnello@edisonmission.com<, Robert Andrews=20
<randrews@coral-energy.com<, Ron Moore <ronald.moore@esso.com<, Ronald=20
Richard <ronald.richard@mrn.gouv.qc.ca<, Shonda Day <days@epenergy.com<,=20
Suzanne Borcher-Chen <suzanne.boucher-chen@mirant.com<, Vern Gorr=20
<vgorr@saskenergy.sk.ca<, Isabelle Quach <iquach@gazmet.com<, Robert Rowe=
=20
<rob.rowe@cgc.enbridge.com<, Richard King <rking@powerbudd.com<, Dan Collin=
s=20
<dacollins@negm.com<, Mike Lucy <mslucy@negm.com<, Nick Schultz=20
<schultz@capp.ca<, Howard Stephens <hstephens@hydro.mb.ca<, Brent Moen=20
<bmoen@hydro.mb.ca<, Jeremy Slasor <jeremy.slasor@demloak.com<, John=20
Guerriero <jguerriero@duke-energy.com<, Jim Fisher <jfisher@duke-energy.com=
<,=20
Janet Holder <janet.holder@cgc.enbridge.com<, Rob Hemstock=20
<rhemsto@ect.enron.com<, Aleck Dadson <adadson@ect.enron.com<, Normand=20
Stevenson <nstevenson@gazmet.com<, Randy Fryer <rfryer@northlandpower.com<,=
=20
Alan Reid <alan_reid@pcp.ca<, John MacPherson <macpher@petro-canada.ca<,=20
Alain Lefebvre <alain.lefebvre@mrn.gouv.qc.ca<, craigl <craigl@cnrl.com<,=
=20
swong <swong@northlandpower.com<, rinde_powell <rinde_powell@pcp.ca<, Debbi=
e=20
Harris <debbie_harris@transcanada.com<, lnixon <lnixon@tmvgas.com<,=20
"jill.page" <jill.page@gov.ab.ca<, Diane Cameron=20
<diane_cameron@nexeninc.com<, "Bernard.Kramer"=20
<Bernard.Kramer@mcnenergy.com<, Sharon Johnson <sharonej@telusplanet.net<,=
=20
Jack Hawks <jack.hawks@neg.pge.com<, Peter Fournier <pfournier@igua.ca<,=20
"ed.bruton" <ed.bruton@et.neg.com<, Noel Bartlo <bartlon@epenergy.com<,=20
Tomasz Lange <tomasz.lange@mirant.com<, Phi Dang <PDang@gazoductqm.com<,=20
"Carol.Nykolyn" <Carol.Nykolyn@gov.ab.ca<, Marg Seeger=20
<marg_seeger@transcanada.com<, Jim Bartlett <jim_bartlett@transcanada.com<,=
=20
John Lee <john_lee@transcanada.com<, Rob Whitmore=20
<rob_whitmore@transcanada.com<, Steve Emond <steve_emond@transcanada.com<,=
=20
Max Feldman <max_feldman@transcanada.com<, Kareen Borgeson=20
<kareen_borgeson@transcanada.com<
cc: =20
Subject: Results of Vote and Press Release

Attached are the results of the vote and the press release which was
released early this morning. We are currently working on a plan to
complete the MOU over the next month and will be back to you with a
schedule by the end of this week.

- Press Release.doc
- RESULTS OF VOTE ON STATEMENT OF PRINCIPLES.doc