TransCanada Reports 2005 Net Income of $1.2 Billion: Board of Directors Increases Quarterly Dividend.CALGARY Calgary (kăl`gərē), city (1991 pop. 710,677), S Alta., Canada, at the confluence of the Bow and Elbow rivers. The largest city in Alberta and the fastest-growing major city in Canada, Calgary is a corporate, transportation, and financial , Alberta Alberta (ălbûr`tə), province (2001 pop. 2,974,807), 255,285 sq mi (661,188 sq km), including 6,485 sq mi (16,796 sq km) of water surface, W Canada. -- Fourth Quarter and Year-End year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 2005 Financial Highlights (All financial figures are unaudited and in Canadian dollars Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents unless noted otherwise) - Quarterly dividend of $0.32 per common share declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. by the Board of Directors, an increase of five per cent - Net income, excluding gains, for fourth quarter 2005 of $235 million or $0.48 per share, an increase of 27 per cent - Net income, excluding gains, for the year ended December December: see month. 31, 2005 of $852 million or $1.75 per share, an increase of eight per cent - Funds generated from operations for fourth quarter 2005 of $530 million, an increase of 12 per cent; for the year ended December 31, 2005, $1,951 million, an increase of 15 per cent The Board of Directors of TransCanada The term TransCanada can refer to several things:
TransCanada today announced net income and net income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the (net earnings) for fourth quarter 2005 of $350 million or $0.72 per share. Excluding an after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. gain of $115 million or $0.24 per share from the sale of the company's interest in PT Paiton Energy Company (Paiton Energy), net earnings were $235 million or $0.48 per share, an increase of $50 million or $0.10 per share compared to $185 million or $0.38 per share for fourth quarter 2004. For the year ended December 31, 2005, TransCanada's net income was $1,209 million or $2.49 per share compared to $1,032 million or $2.13 per share for 2004. Net earnings for 2005 included gains related to the sales of TransCanada Power, L.P. (Power LP), Paiton Energy and units of TC PipeLines, LP (PipeLines, LP), while net earnings for 2004 included gains on sales of the ManChief and Curtis Palmer palmer: see pilgrim. assets to Power LP and the company's equity interest in Millenium. Excluding total gains of $357 million recorded in 2005 and total gains of $194 million recorded in 2004, net earnings for 2005 of $852 million or $1.75 per share increased $66 million or $0.13 per share compared to 2004. Funds generated from operations for fourth quarter 2005 were $530 million, an increase of $55 million compared to fourth quarter 2004. Funds generated from operations for the year ended December 31, 2005 were $1,951 million, an increase of $248 million compared to 2004. "TransCanada's strong 2005 results are the direct result of significant capital investments over the past six years," said Hal Kvisle, TransCanada's chief executive officer. "We have invested approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $8.5 billion over that period to grow our North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. gas transmission and power businesses. In doing so, we have sustained our gas transmission earnings and built a substantial and profitable power generation business. "Events over the past year have reinforced re·in·force also re-en·force or re·en·force tr.v. re·in·forced, re·in·forc·ing, re·in·forc·es 1. To give more force or effectiveness to; strengthen: The news reinforced her hopes. the critical need for new gas and power infrastructure in many parts of North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . TransCanada continues to play a vital role in the continental energy market through our extensive natural gas transmission network and our growing fleet of power generation facilities," said Mr. Kvisle. "In 2005, TransCanada invested approximately $2.1 billion in our core businesses. Notable acquisitions included the Sheerness Sheerness, England: see Queenborough-in-Sheppey. Power Purchase Arrangement and the Northeast “Northeastern” redirects here. For the Boston college, see Northeastern University, Boston. Northeast or north east is the ordinal direction halfway between north and east. It is the opposite of southwest. See boxing the compass. US hydro hy·dro adj. Hydroelectric. n. pl. hy·dros 1. Hydroelectric power. 2. A hydroelectric power plant. assets. Key development projects include Bruce Power Bruce Power Limited Partnership is a Canadian corporation. It exists as a partnership between Cameco Corporation (31.6%), TransCanada Corporation (31.6%), BPC Generation Infrastructure Trust (31.6%), the Power Workers Union (4%) and The Society of Energy Professionals (1. , the Becancour cogeneration cogeneration In power systems, use of steam for both power generation and heating. High-temperature, high-pressure steam from a boiler and superheater first passes through a turbine to produce power. plant, the Cartier Wind power project and the Keystone key·stone n. 1. Architecture The central wedge-shaped stone of an arch that locks its parts together. Also called headstone. 2. The central supporting element of a whole. oil pipeline. Longer-term initiatives relate to the transmission of northern natural gas and the development of liquefied natural gas liquefied natural gas: see under natural gas. Liquefied natural gas (LNG) A product of natural gas which consists primarily of methane. Its properties are those of liquid methane, slightly modified by minor constituents. facilities. Acquisitions, active projects and longer-term initiatives will all contribute to further strengthening our position as a leading North American energy infrastructure company. "Our success is the direct result of our expertise in our core businesses, our experience in the responsible and reliable operation of large-scale large-scale adj. 1. Large in scope or extent. 2. Drawn or made large to show detail. large-scale Adjective 1. wide-ranging or extensive 2. energy infrastructure, and our financial strength. For our shareholders, that has meant another year of solid growth in earnings and cash flow, and a total annual return on their investment of approximately 28 per cent. For the sixth year in a row, confidence in our growth prospects has enabled TransCanada's Board of Directors to increase the dividend paid to shareholders to $1.28 on an annual basis," said Mr. Kvisle. During the fourth quarter of 2005 and the first month of 2006, TransCanada: - Announced in October October: see month. that Bruce Power (being the collective investments in Bruce Power A L.P. (Bruce Bruce, Scottish royal family descended from an 11th-century Norman duke, Robert de Brus. He aided William I in his conquest of England (1066) and was given lands in England. A) and Bruce Power L.P. (Bruce B)) and the Ontario Power Authority The Ontario Power Authority (OPA) was established through the Electricity Restructuring Act, 2004 (Bill 100). It operates independently and as a non-profit corporation. Licensed by the Ontario Energy Board, it reports to the legislature through the Ministry of Energy (Ontario). (OPA OPA: see Office of Price Administration. ), a Crown Corporation of the Province of Ontario Ontario, city, United States Ontario, city (1990 pop. 133,179), San Bernardino co., S Calif., near Los Angeles, in a region of vineyards; inc. 1891. , entered into a long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. agreement on the restart To resume computer operation after a planned or unplanned termination. See boot, warm boot and checkpoint/restart. and refurbishment re·fur·bish tr.v. re·fur·bished, re·fur·bish·ing, re·fur·bish·es To make clean, bright, or fresh again; renovate. re·fur of the Bruce A units. The capital program for the restart and refurbishment work is expected to total approximately $4.25 billion. As owner of a 47.9 per cent interest in the newly formed Bruce A (along with BPC Generation Infrastructure Trust BPC Generation Infrastructure Trust is a trust established by Ontario Municipal Employees Retirement System (OMERS) as part of the constortium to run the Bruce Nuclear Generating Station in Ontario[1]. The trust owns 31. (BPC BPC British Potato Council BPC Brewton-Parker College (Mt Vernon, GA) BPC Bible Presbyterian Church BPC Bangladesh Petroleum Corporation (Chittagong, Bangladesh) BPC British Pharmaceutical Codex ) - 47.9 per cent, and the Power Workers' Union The Workers' Union was a trade union in the United Kingdom. It merged with the Transport and General Workers' Union in 1929. See also
v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. share of the capital program is $2.125 billion and will be financed through capital contributions to 2011. With the restart of Units 1 and 2, Bruce Power's output capacity is expected to rise by approximately 1,500 megawatts (MW) to more than 6,200 MW. - In November November: see month. , signed a Memorandum of Understanding A Memorandum of Understanding (MoU) is a legal document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action and may not imply a legal commitment. with ConocoPhillips ConocoPhillips (NYSE: COP) is an international energy corporation with its headquarters located in Houston, Texas. It was created through the merger of Conoco Inc. and the Phillips Petroleum Company on August 30, 2002. Company and ConocoPhillips Pipe Line Company (CPPL CPPL Paintball Players League of Canada CPPL Card Printer Programming Language CPPL Council for Public Policy and Legislation ) (a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of ConocoPhillips Company) which commits ConocoPhillips Company to ship crude oil on the proposed Keystone oil pipeline (Keystone), and gives CPPL the right to acquire up to a fifty per cent participating interest in the pipeline. On January January: see month. 31, 2006, TransCanada announced it has secured firm, long-term contracts totalling 340,000 barrels per day Barrels per day (abbreviated BPD, bbl/d, bpd, bd or b/d) is a measurement used to describe the amount of crude oil (measured in barrels) produced or consumed by an entity in one day. through the binding Open Season held during the fourth quarter. The Keystone pipeline This article or section contains information about a planned or expected pipeline. It may contain information of a speculative nature and the content may change dramatically as the construction and/or completion of the pipeline approaches, and more information becomes available. , expected to cost approximately US$2.1 billion, will be capable of transporting approximately 435,000 barrels per day of crude oil from Hardisty, Alberta Hardisty, Alberta is a town in Flagstaff County in Alberta, Canada. It is located in east-central Alberta, km ( mi) from the Saskatchewan border, near the crossroads of Highway 13 and Highway 881, in the Battle River Valley. to Patoka, Illinois Patoka is a village in Marion County, Illinois, United States. The population was 633 at the 2000 census. Geography Patoka is located at (38.753362, -89.095524). through a 2,950 kilometre pipeline system. - Acquired the remaining rights and obligations of the 756 megawatt meg·a·watt n. Abbr. MW One million watts. meg  a·watt Sheerness Power Purchase Arrangement (PPA PPA 1. Palpation, Percussion & Ausculation 2. Pittsburgh pneumonia agent 3. Postpartum amenorrhea 4. Price per accession 5. Pure pulmonary atresia ) from the Alberta
Balancing Pool for $585 million. The remaining term of the PPA is
approximately 15 years. The acquisition closed on December 30, 2005.- Closed the sale of its 11 per cent interest in Paiton Energy to subsidiaries of The Tokyo Tokyo (tō`kēō), city (1990 pop. 8,163,573), capital of Japan and of Tokyo prefecture, E central Honshu, at the head of Tokyo Bay. Electric Power Company for gross proceeds of US$103 million ($122 million). Paiton Energy owns two 615 MW coal-fired Adj. 1. coal-fired - fueled by burning coal; "a coal-fired ship" coal-burning fueled - heated, driven, or produced by burning fuel power plants in East Java East Java (Indonesian: Jawa Timur) is a province of Indonesia. It is located on the eastern part of the island of Java and also includes neighboring Madura and Bawean islands. , Indonesia Indonesia (ĭn'dənē`zhə), officially Republic of Indonesia, republic (2005 est. pop. 241,974,000), c.735,000 sq mi (1,903,650 sq km), SE Asia, in the Malay Archipelago. . - Received support from the Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. Association of Petroleum Producers (CAPP) and other stakeholders Stakeholders All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government. for an increase in the deemed common equity ratio from 30 per cent to 36 per cent on TransCanada's Foothills and BC Systems, effective January 1, 2006. On December 21, 2005, The National Energy Board (NEB) approved the Foothills System 2006 tolls, reflecting a deemed common equity of 36 per cent, as final tolls. BC System tolls have been authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: on an interim basis, with no issues raised with respect to the capital structure. - Continued to advance the Becancour and Cartier Wind power projects. Construction of the 550 MW Becancour cogeneration plant near Trois Rivieres Trois Ri·vières or Trois-Rivières A city of southern Quebec, Canada, at the confluence of the St. Lawrence and St. Maurice rivers. Founded in 1634, it is a river port and manufacturing center with a pulp and paper industry. Population: 46,264. , Quebec Quebec, city, Canada Quebec, Fr. Québec, city (1991 pop. 167,517), provincial capital, S Que., Canada, at the confluence of the St. Lawrence and St. Charles rivers. remains on schedule to begin operations in September September: see month. 2006. The 740 MW Cartier Wind project, 62 per cent owned by TransCanada, continued to award construction contracts in November and December and construction is scheduled to begin in March 2006. Located in the Gaspesie region of Quebec, the first of the six projects that make up Cartier Wind is anticipated to be operational beginning in December 2006 with the remaining projects continuing through 2012. - Issued, in January 2006, through its wholly owned subsidiary TransCanada PipeLines The TransCanada pipeline is a system of natural gas pipelines, up to 48 inches (1219 millimetres) in diameter, that carries gas through Alberta, Saskatchewan, Manitoba, Ontario and Quebec. It is maintained by TransCanada PipeLines, LP. It is the longest pipeline in Canada. Limited (TCPL), $300 million of five-year medium-term notes Medium-term note (MTN) A corporate debt instrument that is continuously offered to investors over a period of time by an agent of the issuer. Investors can select from maturity bands of: 9 months to 1 year, more than 1 year to 18 months, more than 18 months to 2 years, etc. bearing interest of 4.3 per cent under its Canadian base shelf program. Proceeds from the offering were used to reduce commercial paper outstanding. - On behalf of the Broadwater Energy project, filed a formal application on January 30, 2006 with the U.S. Federal Energy Regulatory Commission The Federal Energy Regulatory Commission (FERC) is the United States federal agency with jurisdiction over electricity sales, wholesale electric rates, hydroelectric licensing, natural gas pricing, and oil pipeline rates. (FERC FERC Federal Energy Regulatory Commission FERC FEMA Emergency Response Capability ) for federal approval to construct and operate the Broadwater project. The proposed facility, which would be located in the New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of State waters of Long Island Sound, would be capable of receiving, storing, and re-gasifying imported liquefied natural gas with an average annual send-out capacity of approximately one billion cubic feet (bcf) a day of natural gas. The estimated cost of construction is US$700 million to US$1 billion. Broadwater is being developed jointly by TransCanada and Shell US Gas and Power. - The Mackenzie Mackenzie, river, c.1,120 mi (1,800 km) long, issuing from Great Slave Lake, Northwest Territories, Canada, and flowing generally NW to the Arctic Ocean through a great delta. Between Great Slave Lake and Lake Athabasca it is known as the Slave River. Gas Pipeline Project has continued to progress. The public hearings phase of the regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. process commenced in late January 2006 and is expected to continue throughout the year.
Results of Operations
Three months ended Year ended
Operating Results December 31 December 31
(millions of dollars) 2005 2004 2005 2004
---------------------------------------------------------------------
Revenues 1,771 1,480 6,124 5,497
Net Income
Continuing operations 350 185 1,209 980
Discontinued operations - - - 52
---------------------------------------
350 185 1,209 1,032
---------------------------------------
---------------------------------------
Cash Flows
Funds generated from
operations 530 475 1,951 1,703
Increase/(decrease) in working
capital 124 (23) (49) 29
---------------------------------------
Net cash provided by
operations 654 452 1,902 1,732
---------------------------------------
---------------------------------------
Capital expenditures (345) (203) (754) (530)
Acquisitions,
net of cash acquired (685) (1,453) (1,317) (1,516)
Dispositions, net of current
tax 125 2 671 410
Three months ended Year ended
December 31 December 31
Common Share Statistics 2005 2004 2005 2004
---------------------------------------------------------------------
Net Income Per Share - Basic
Continuing operations $0.72 $0.38 $2.49 $2.02
Discontinued operations - - - 0.11
---------------------------------------
$0.72 $0.38 $2.49 $2.13
---------------------------------------
---------------------------------------
Dividends Declared Per Share $0.305 $0.29 $1.22 $1.16
Common Shares Outstanding
(millions)
Average for the period
- Basic 487.1 484.7 486.2 484.1
End of period 487.2 484.9 487.2 484.9
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Consolidated
Segment Results-at-a-Glance Three months ended Year ended
(millions of dollars except December 31 December 31
per share amounts) 2005 2004 2005 2004
---------------------------------------------------------------------
Gas Transmission Net Earnings
Excluding gains 160 157 635 579
Gain on sale of PipeLines
LP units - - 49 -
Gain on sale of Millennium - - - 7
---------------------------------------
160 157 684 586
---------------------------------------
Power Net Earnings
Excluding gains 82 31 253 209
Gain on sale of Paiton Energy 115 - 115 -
Gains related to Power LP - - 193 187
---------------------------------------
197 31 561 396
---------------------------------------
Corporate (7) (3) (36) (2)
---------------------------------------
Net Income
Continuing Operations (1) 350 185 1,209 980
Discontinued Operations - - - 52
---------------------------------------
350 185 1,209 1,032
---------------------------------------
---------------------------------------
Net Income Per Share
Continuing Operations (2) $0.72 $0.38 $2.49 $2.02
Discontinued Operations - - - 0.11
---------------------------------------
Basic $0.72 $0.38 $2.49 $2.13
---------------------------------------
---------------------------------------
Diluted $0.71 $0.38 $2.47 $2.12
---------------------------------------
---------------------------------------
(1)Net Income from Continuing
Operations:
Excluding gains 235 185 852 786
Gains related to Paiton Energy,
PipeLines LP, Power LP
and Millennium 115 - 357 194
---------------------------------------
350 185 1,209 980
---------------------------------------
---------------------------------------
(2)Net Income Per Share from
Continuing Operations:
Excluding gains $0.48 $0.38 $1.75 $1.62
Gains related to Paiton Energy,
PipeLines LP, Power LP
and Millennium 0.24 - 0.74 0.40
---------------------------------------
$0.72 $0.38 $2.49 $2.02
---------------------------------------
---------------------------------------
Net income and net earnings for fourth quarter 2005 of $350 million or $0.72 per share increased by $165 million or $0.34 per share compared to $185 million or $0.38 per share for fourth quarter 2004. This increase was due to significantly higher net earnings from the Power business, including an after-tax gain of $115 million or $0.24 per share from the sale of Paiton Energy. Excluding the $115 million gain on sale of Paiton Energy, net income and net earnings for fourth quarter 2005 increased $50 million or $0.10 per share compared to fourth quarter 2004, to $235 million or $0.48 per share. This was due to increases of $51 million and $3 million in net earnings from the Power and Gas Transmission businesses, respectively, partially offset by an increase of $4 million in net expenses in the Corporate segment. The increase in Power's net earnings was primarily due to higher operating and other income from Bruce Power and Eastern Operations. The increase in net earnings from the Gas Transmission business was primarily due to higher earnings from the Gas Transmission Northwest Gas Transmission Northwest is a natural gas pipeline that brings gas from western Canada through Washington and Oregon into California, connecting to the Pacific Gas and Electric system. Prior to being purchased by TransCanada Corporation, it was named Pacific Gas Transmission. System and the North Baja Baja (bŏ`yŏ), city (1991 est. pop. 38,867), S Hungary, on the Danube River. It is a river port and a road and rail hub, where agricultural products of the surrounding region are traded and processed. System (collectively GTN GTN gestational trophoblastic neoplasia. ), acquired on November 1, 2004. Corporate's net expenses increased in fourth quarter 2005 compared to fourth quarter 2004 primarily due to increased net interest costs, partially offset by an income tax refund Tax refund Money back from the government when too much tax has been paid or withheld from a salary. in fourth quarter 2005. TransCanada's net income for the year ended December 31, 2005 was $1,209 million or $2.49 per share compared to $1,032 million or $2.13 per share for 2004. Net income for 2004 included net income from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. of $52 million or $0.11 per share. TransCanada's net earnings for the year ended December 31, 2005 were $1,209 million or $2.49 per share compared to $980 million or $2.02 per share for 2004. Net earnings for 2005 included after-tax gains of $193 million on the sale of the company's interest in Power LP, $115 million on the sale of Paiton Energy and $49 million on the sale of PipeLines LP units, while net earnings for 2004 included after-tax gains of $187 million on the sale of the ManChief and Curtis Palmer assets to Power LP and the recognition of dilution Dilution A reduction in earnings per share of common stock that occurs through the issuance of additional shares or the conversion of convertible securities. Notes: Adding to the number of shares outstanding reduces the value of holdings of existing shareholders. gains resulting from a reduction in TransCanada's ownership interest in Power LP and other previously deferred gains, as well as a $7 million after-tax gain on sale of the company's equity interest in Millennium millennium [Lat.,=1,000 years], the period of 1,000 years in which, according to some schools of Christian eschatology, Christ will reign again gloriously on earth. Belief in the millennium, based on Rev. 20, has recurred in Christianity since the earliest times. . Excluding the total gains of $357 million recorded in 2005 and total gains of $194 million recorded in 2004, net earnings for 2005 of $852 million or $1.75 per share increased $66 million or $0.13 per share compared to 2004. This was mainly due to an increase in net earnings from the Gas Transmission and Power businesses, partially offset by an increase in net expenses in the Corporate segment. Excluding the gains on sales of PipeLines LP units in 2005 and the Millennium interest in 2004, the $56 million increase in net earnings from the Gas Transmission business for 2005 compared to 2004 was primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to a $57 million increase as a result of a full year of net earnings from GTN. In addition, Gas Transmission's net earnings for 2005 included approximately $35 million ($13 million related to 2004 and $22 million related to the year ended December 31, 2005) as a result of the April 2005 NEB decision on the Canadian Mainline's 2004 Tolls and Tariff Application (Phase II). This decision dealt with capital structure and included an increase in the deemed common equity ratio to 36 per cent from 33 per cent for 2004, which was also effective for 2005 under the 2005 tolls settlement. The increase in Canadian Mainline's earnings for 2005 as a result of this NEB decision was partially offset by a combination of a lower average investment base, lower earnings related to operating cost savings and a decrease in the approved rate of return on common equity (ROE A fictitious surname used for an unknown or anonymous person or for a hypothetical person in an illustration. A lawsuit is generally named for the persons who are parties to it. ) in 2005 compared to 2004. These increases in net earnings were partially offset by lower earnings from TransCanada's Other Gas Transmission businesses. Excluding the above-mentioned A`bove´-men`tioned a. 1. Mentioned or named before; aforesaid; mentioned or named earlier in the same text (in written documents). Adj. 1. gains related to the company's investments in Power LP in 2004 and 2005 and Paiton Energy in 2005, Power's net earnings for 2005 increased $44 million as a result of higher operating and other income from Bruce Power and Eastern Operations, partially offset by lower contributions from Western Operations and higher general, administrative, support costs and other. The increase in net expenses of $34 million in the Corporate segment in 2005 compared to 2004 was primarily due to increased interest expense on higher average long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. and commercial paper balances in 2005 as well as the release in third quarter 2004 of previously established restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). provisions. Funds generated from operations of $530 million for fourth quarter 2005 increased $55 million compared to fourth quarter 2004. Funds generated from operations of $1,951 million for the year ended December 31, 2005 increased $248 million when compared to 2004. Gas Transmission The Gas Transmission business generated net earnings of $160 million and $684 million for the three months and year ended December 31, 2005, respectively, compared to $157 million and $586 million for the comparable periods in 2004.
Gas Transmission Three months ended Year ended
Results-at-a-Glance December 31 December 31
(millions of dollars) 2005 2004 2005 2004
---------------------------------------------------------------------
Wholly-Owned Pipelines
Canadian Mainline 67 71 283 272
Alberta System 38 40 150 150
GTN (1) 18 14 71 14
Foothills System 5 5 21 22
BC System 1 2 6 7
---------------------------------------
129 132 531 465
---------------------------------------
Other Gas Transmission
Great Lakes 10 12 46 55
Iroquois 3 3 17 17
PipeLines LP 2 3 9 16
Portland 4 4 11 10
Ventures LP 3 5 12 15
TQM 2 2 7 8
CrossAlta 7 7 19 13
TransGas 3 2 11 11
Northern Development (1) (3) (4) (6)
General, administrative,
support costs and other (2) (10) (24) (25)
---------------------------------------
31 25 104 114
Gain on sale of PipeLines
LP units - - 49 -
Gain on sale of Millennium - - - 7
---------------------------------------
31 25 153 121
---------------------------------------
Net Earnings 160 157 684 586
---------------------------------------
---------------------------------------
(1) TransCanada acquired GTN on November 1, 2004.
Wholly-Owned Pipelines The Canadian Mainline's fourth quarter 2005 net earnings decreased $4 million compared to fourth quarter 2004. The decrease in net earnings was due to a combination of a lower average investment base in 2005, a lower approved rate of return on common equity of 9.46 per cent in 2005 compared to 9.56 per cent in 2004 and lower operating cost savings in 2005 compared to 2004, partially offset by an increase in the deemed common equity ratio. The NEB's decision on the Canadian Mainline's 2004 Tolls and Tariff Application (Phase II) in April 2005 included an increase in the deemed common equity ratio from 33 to 36 per cent for 2004 which was also effective for 2005 under the 2005 tolls settlement. Net earnings for the year ended December 31, 2005 increased $11 million compared to 2004. As a result of the NEB decision that increased the deemed common equity to 36 per cent from 33 per cent, Canadian Mainline's 2005 net earnings increased $35 million ($13 million related to 2004 and $22 million related to 2005) compared to 2004 net earnings. This earnings increase was partially offset by the combination of a lower average investment base, lower operating cost savings in 2005 compared to 2004 and the lower approved ROE in 2005. The Alberta System's net earnings of $38 million in fourth quarter 2005 decreased $2 million compared to $40 million in fourth quarter 2004. Net earnings of $150 million for the year ended December 31, 2005 were consistent with net earnings for 2004. The decrease in fourth quarter net earnings was primarily due to a lower investment base and a lower approved ROE in 2005. Net earnings for the year remained unchanged as the impacts of a lower investment base and a lower approved ROE in 2005 were offset by the impact on 2004 net earnings of disallowed costs in the Alberta Energy and Utilities Board (EUB EUB Energy and Utilities Board (Alberta, Canada) EUB EU–Büro (Bundesministerium für Bildung und Forschung; German ministry of Science) EUB Electric Upright Bass EUB European Union Bank EUB Essential User Bypass ) decision on Phase 1 of the 2004 General Rate Application (GRA GRA Graphic Arts GRA Grande Raccordo Anulare (circular highway surrounding Rome, Italy) GRA Graduate Research Assistant GRA Georgia Research Alliance GRA Graduate Research Assistantship GRA Guyana Revenue Authority ). Net earnings in 2004 and 2005 reflect an ROE of 9.60 and 9.50 per cent, respectively, as prescribed pre·scribe v. pre·scribed, pre·scrib·ing, pre·scribes v.tr. 1. To set down as a rule or guide; enjoin. See Synonyms at dictate. 2. To order the use of (a medicine or other treatment). by the EUB, on deemed common equity of 35 per cent. GTN was acquired by TransCanada on November 1, 2004 and generated net earnings of $18 million and $71 million for the three months and year ended December 31, 2005, respectively, compared to $14 million for the two months ended December 31, 2004.
Operating Statistics
Gas
Transmission
Canadian Alberta Northwest
Mainline(1) System(2) System(3)
Year ended December 31 2005 2004 2005 2004 2005 2004
---------------------------------------------------------------------
Average investment base
($ millions) 7,807 8,196 4,446 4,619 n/a n/a
Delivery volumes (Bcf)
Total 2,997 2,621 3,999 3,909 777 181
Average per day 8.2 7.2 11.0 10.7 2.1 3.0
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---------------------------------------------------------------------
Foothills System BC System
Year ended December 31 2005 2004 2005 2004
---------------------------------------------------------------------
Average investment base
($ millions) 680 714 216 228
Delivery volumes (Bcf)
Total 1,051 1,139 321 360
Average per day 2.9 3.1 0.9 1.0
---------------------------------------------------------------------
---------------------------------------------------------------------
(1) Canadian Mainline deliveries originating at the Alberta border
and in Saskatchewan in 2005 were 2,215 Bcf (2004 - 2,017 Bcf);
average per day was 6.1 Bcf (2004 - 5.5 Bcf).
(2) Field receipt volumes for the Alberta System in 2005 were 4,034
Bcf (2004 - 3,952 Bcf); average per day was 11.1 Bcf
(2004 - 10.8 Bcf).
(3) TransCanada acquired the Gas Transmission Northwest System on
November 1, 2004. The delivery volumes for 2004 represent
November and December 2004 throughput. The system is
currently operating under a fixed rate model approved by FERC
and, as a result, the system's current results are not dependent
on average investment base.
Other Gas Transmission TransCanada's proportionate pro·por·tion·ate adj. Being in due proportion; proportional. tr.v. pro·por·tion·at·ed, pro·por·tion·at·ing, pro·por·tion·ates To make proportionate. share of net earnings from Other Gas Transmission was $31 million for the three months ended December 31, 2005 compared to $25 million for the same period in 2004. The $6 million increase compared to the prior period was primarily due to lower project development costs expensed in fourth quarter 2005 resulting from capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. of costs of the Broadwater and Keystone projects in 2005 and higher earnings from Gas Pacifico Pa`ci´fi`co n. 1. A peaceful person; - applied specif. by the Spaniards to the natives in Cuba and the Philippine Islands who did not oppose the Spanish arms. . These increases were partially offset by lower earnings from Great Lakes Great Lakes, group of five freshwater lakes, central North America, creating a natural border between the United States and Canada and forming the largest body of freshwater in the world, with a combined surface area of c.95,000 sq mi (246,050 sq km). and Ventures LP. Net earnings from Other Gas Transmission for the year ended December 31, 2005 were $153 million compared to $121 million for 2004. Excluding the gain on sale of PipeLines LP units in 2005 and Millennium in 2004, net earnings for 2005 were $10 million lower compared to 2004. The decrease was due to lower net earnings from Great Lakes as a result of lower short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. revenues and higher operating and maintenance costs, and lower net earnings from PipeLines LP as a result of the reduced ownership interest. Results were also negatively impacted by a weaker U.S. dollar in 2005. These decreases were partially offset by higher earnings from CrossAlta as a result of increased capacity and favourable natural gas storage market conditions in 2005. As at December 31, 2005, TransCanada had $87 million of advances to the Aboriginal Pipeline Group (APG APG Assists Per Game (basketball) APG Assists Per Game (hockey statistic) APG Aberdeen Proving Ground APG Automated Password Generator APG Asia Pacific Group on Money Laundering ) with respect to the Mackenzie Gas Pipeline Project, and had capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. $19 million of costs related to the Broadwater project and $6 million related to the Keystone project.
Power
Three months ended Year ended
Power Results-at-a-Glance December 31 December 31
(millions of dollars) 2005 2004 2005 2004
---------------------------------------------------------------------
Bruce Power 53 5 195 130
Western operations 33 25 123 138
Eastern operations 68 31 137 108
Power LP investment - 7 29 29
General, administrative,
support costs and other (28) (19) (102) (89)
---------------------------------------
Operating and other income 126 49 382 316
Financial charges (4) (4) (11) (13)
Income taxes (40) (14) (118) (94)
---------------------------------------
82 31 253 209
Gains related to Power LP
and Paiton Energy 115 - 308 187
---------------------------------------
Net Earnings 197 31 561 396
---------------------------------------
---------------------------------------
Power's net earnings of $197 million in fourth quarter 2005 increased $166 million compared to $31 million in fourth quarter 2004. The gain on sale of Paiton Energy accounted for $115 million of this increase. Excluding this gain, Power's net earnings in fourth quarter 2005 of $82 million increased $51 million compared to the same period in 2004, primarily due to higher operating and other income from Bruce Power and Eastern Operations. Bruce Power's contribution to operating and other income increased by $48 million in fourth quarter 2005 compared to fourth quarter 2004, primarily due to higher realized power prices on uncontracted volumes sold into Ontario's wholesale spot market, higher generation volumes and an increased ownership interest in the Bruce A facilities effective October 31, 2005. Western Operations' operating and other income was $8 million higher in fourth quarter 2005 compared to fourth quarter 2004 primarily due to increased margins in fourth quarter 2005 as a result of higher market heat rates on uncontracted volumes of power sold. Partially offsetting this increase was lower contributions from the Bear Creek Bear Creek may refer to: Communities
n. 1. A quantity or portion of something lacking after delivery or storage. 2. A temporary suspension of operation, especially of electric power. throughout the quarter. Eastern Operations' operating and other income was $37 million higher in fourth quarter 2005 compared to fourth quarter 2004 primarily due to contributions from TransCanada Hydro Northeast, Inc. (TC Hydro), which holds the hydroelectric generation assets acquired from USGen New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. , Inc. on April 1, 2005, and from the Grandview Grandview, city (1990 pop. 24,967), Jackson co., W Mo., S of Kansas City; inc. 1912. Hardware, chemicals, transportation equipment, apparel, steel, processed foods, and machinery are manufactured in the city. cogeneration facility placed into service in January 2005. Partially offsetting these increases was a fourth quarter 2004 positive impact due to a restructuring transaction relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Ocean State Power (OSP (Online Service Provider) See online service. OSP - Optical Signal Processor ) power purchase contracts and the loss of operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. associated with the expiration EXPIRATION. Cessation; end. As, the expiration of, a lease, of a contract, or statute. 2. In general, the expiration of a contract puts an end to all the engagements of the parties, except to those which arise from the non- fulfillment of obligations created of certain long-term sales contracts Sales Contract Contract between a seller and buyer for the sale of goods, services, or both. in 2004. General, administrative, support costs and other increased $9 million in fourth quarter 2005 compared to fourth quarter 2004 primarily due to higher business development costs expensed in 2005 and the positive impact in fourth quarter 2004 of the recognition of unrealized foreign exchange gains on Power LP's U.S. dollar denominated debt. Net earnings for the year ended December 31, 2005 of $561 million increased $165 million compared to $396 million in 2004. Excluding the gain on sale of Paiton Energy of $115 million in 2005 and gains related to Power LP of $193 million and $187 million in 2005 and 2004, respectively, Power's net earnings for the year ended December 31, 2005 of $253 million increased $44 million compared to $209 million in 2004. The increase was primarily due to higher operating and other income from Bruce Power and Eastern Operations, partially offset by reduced contributions from Western Operations and higher general, administrative, support costs and other. Bruce Power On October 31, 2005, Bruce Power and the OPA, completed a long-term agreement whereby Bruce A will refurbish re·fur·bish tr.v. re·fur·bished, re·fur·bish·ing, re·fur·bish·es To make clean, bright, or fresh again; renovate. re·fur and restart the currently idle Units 1 and 2, extend the operating life of Unit 3 by replacing its steam generators A steam generator is a device used to boil water to create steam. It may refer to:
adj. 1. Occurring on a routine or daily basis: the day-to-day movements of the stock market. 2. operations of the Bruce Power facility are expected to be unaffected by the formation of the Bruce A partnership and TransCanada continues to own 31.6 per cent of the Bruce B Units 5 to 8. Upon reorganizing, both Bruce A and Bruce B became jointly controlled entities and TransCanada proportionately pro·por·tion·ate adj. Being in due proportion; proportional. tr.v. pro·por·tion·at·ed, pro·por·tion·at·ing, pro·por·tion·ates To make proportionate. consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: these investments on a prospective basis from October 31, 2005. The following Bruce Power financial results reflect the operations of the full six-unit operation for all periods. The Bruce Power information below includes adjustments to eliminate the effects of intercompany transactions Intercompany transaction Transaction carried out between two units of the same corporation. between Bruce A and Bruce B.
Bruce Power Results-at-a-Glance
Three months ended Year ended
December 31 December 31
(millions of dollars) 2005 2004 2005 2004
---------------------------------------------------------------------
Bruce Power (100 per cent basis)
Revenues
Power 476 351 1,907 1,563
Other (1) 13 4 35 20
---------------------------------------
489 355 1,942 1,583
---------------------------------------
Operating expenses
Operations and maintenance (231) (244) (871) (793)
Fuel (19) (17) (77) (68)
Supplemental rent (41) (40) (164) (156)
Depreciation and
amortization (53) (44) (198) (161)
---------------------------------------
(344) (345) (1,310) (1,178)
---------------------------------------
Operating income 145 10 632 405
Financial charges under
equity accounting - to
October 31, 2005 (6) (17) (58) (67)
---------------------------------------
139 (7) 574 338
---------------------------------------
---------------------------------------
TransCanada's proportionate
share 51 (2) 188 107
Adjustments 2 7 7 23
---------------------------------------
TransCanada's operating and
other income from Bruce
Power(2) 53 5 195 130
---------------------------------------
---------------------------------------
Bruce Power - Other Information
Plant availability 79% 72% 80% 82%
Sales volumes (GWh) (3)
Bruce Power - 100 per cent 8,300 7,500 32,900 33,600
TransCanada's proportionate
share 2,946 2,351 10,732 10,608
Results per MWh (4)
Power revenues $ 57 $ 47 $ 58 $ 47
Fuel $ 2 $ 2 $ 2 $ 2
Total operating expenses (5) $ 41 $ 46 $ 40 $ 35
Percentage of output sold
to spot market 35% 47% 49% 52%
---------------------------------------
---------------------------------------
(1) Includes fuel cost recoveries for Bruce A of $4 million for the
three months and year ended December 31, 2005.
(2) TransCanada's consolidated equity income includes $168 million
and $26 million which represents TransCanada's 31.6 per cent
share of Bruce Power earnings for the ten months and one month
ended October 31, 2005, respectively.
(3) Gigawatt hours
(4) Megawatt hours
(5) Net of cost recoveries
TransCanada's operating and other income from its combined investment in Bruce Power increased $48 million in fourth quarter 2005 compared to fourth quarter 2004, primarily due to higher realized power prices on uncontracted volumes sold into Ontario's wholesale spot market, higher generation volumes and an increased ownership interest in Bruce A. TransCanada's share of Bruce Power's combined generation for fourth quarter 2005 increased 595 GWh to 2,946 GWh compared to fourth quarter 2004 generation of 2,351 GWh as a result of fewer planned maintenance outage days in fourth quarter 2005 than during the same period in 2004. Combined Bruce Power prices achieved during fourth quarter 2005 (excluding other revenues) were $57 per MWh, compared to $47 per MWh in fourth quarter 2004. Combined Bruce Power operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. (net of fuel cost recoveries) in fourth quarter 2005 decreased to $41 per MWh from $46 MWh in fourth quarter 2004 primarily due to increased output in fourth quarter 2005. Approximately 66 reactor Reactor (electricity) A device for introducing an inductive reactance into a circuit. Inductive reactance x is a function of the product of frequency f and inductance L; thus, x = 2πfL. days of planned maintenance outages as well as 35 reactor days of unplanned outages occurred on the six operating units operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon in fourth quarter 2005. In fourth quarter 2004, Bruce Power experienced 100 reactor days of planned maintenance outages and 35 reactor days of unplanned outages. The Bruce Power units ran at a combined average availability of 79 per cent in fourth quarter 2005, compared to a 72 per cent average availability during fourth quarter 2004. Unit 5 returned to service in December 2005 after a 75 day outage, including a nine day unplanned extension to the outage. During fourth quarter 2005, there were minor unplanned outages on Units 3, 4 and 6. All of those units were returned to service during the quarter and as at December 31, 2005, all six Bruce Power units were operating. TransCanada's operating and other income from its combined investment in Bruce Power for the year ended December 31, 2005 was $195 million compared to $130 million for 2004. The increase of $65 million was primarily due to higher realized prices in 2005 and was offset in part by higher maintenance costs, higher depreciation and lower capitalization of labour and other in-house In-house In the context of general equities, keeping an activity within the firm. For example, rather than go to the marketplace and sell a security for a client to anyone, an attempt is made to find a buyer to complete the transaction with the firm. costs following the restart of Unit 3 in first quarter 2004. Adjustments to TransCanada's combined interest in Bruce Power's income before income taxes for the three months and year ended December 31, 2005 were lower than in the comparable periods in 2004 primarily due to a lower amortization of the purchase price allocated to the fair value of sales contracts in place at the time of acquisition. Combined Bruce Power prices achieved during the year ended December 31, 2005 (excluding other revenues) were $58 per MWh compared to $47 per MWh in 2004. Bruce Power's combined operating expenses (net of fuel cost recoveries) increased to $40 per MWh for the year ended December 31, 2005 from $35 per MWh in 2004. This was primarily the result of one additional planned maintenance outage in 2005 compared to 2004 as well as higher maintenance costs, higher depreciation and lower capitalization of labour and other in-house costs following the restart of Unit 3. The Bruce units ran at a combined average availability of 80 per cent in 2005, compared to 82 per cent in 2004. Income from Bruce B is directly impacted by fluctuations in wholesale spot market prices for electricity and income from both Bruce A and Bruce B units is impacted by overall plant availability which, in turn, is impacted by scheduled and unscheduled unscheduled Adjective not planned or intended Adj. 1. unscheduled - not scheduled or not on a regular schedule; "an unscheduled meeting"; "the plane made an unscheduled stop at Gander for refueling" maintenance. To reduce its exposure to spot market prices, Bruce B has entered into fixed price sales contracts to sell forward approximately 13 terawatt hours (TWh) of 2006 output and 3.6 TWh of 2007 output. As a result of the contract with the OPA, all of the output from Bruce A will be sold at a fixed price of $57.37 per MWh, before recovery of fuel costs from the OPA. Under the terms of the arrangement between Bruce A and the OPA, effective October 31, 2005 Bruce A receives a contract price for power generated, where the price is adjusted for inflation annually on April 1 and capital cost variances associated with the restart and refurbishment project but will not vary with changes in the wholesale price of power in the Ontario market. The Bruce A fixed price may also be adjusted to reflect cost savings and cost overruns Noun 1. cost overrun - excess of cost over budget; "the cost overrun necessitated an additional allocation of funds in the budget" cost - the total spent for goods or services including money and time and labor associated with the Bruce A restart and refurbishment project. As part of this contract, sales from the Bruce B Units 5 to 8 are subject to a floor price of $45 per MWh, adjusted annually for inflation on April 1. Receipts by Bruce B under this floor price mechanism are refundable Refundable Eligible for refunding under the terms of a bond indenture. if prices subsequently increase above the floor price. The overall plant availability percentage in 2006, for planning purposes, is expected to be in the low 90s for the four Bruce B units and in the low 80s for the two operating Bruce A units. A planned outage on Bruce A Unit 3 is scheduled to last approximately one month during first quarter 2006 and a two month planned maintenance outage of Bruce A Unit 4 is expected to commence in second quarter 2006. The only planned maintenance outage for 2006 for Bruce B is an approximate two month outage scheduled for Unit 8 beginning in third quarter 2006. Bruce Power made cash distributions, excluding the special distribution, of $185 million to its partners in fourth quarter 2005. TransCanada's share was $58 million. For the year ended December 31, 2005, cash distributions, excluding the special distribution, to partners were $400 million of which TransCanada's share was $126 million. No distributions were made to partners in 2004. The partners have agreed that all excess cash from both Bruce A and Bruce B will be distributed on a monthly basis and that separate cash calls will be made for major capital projects, including the Bruce A refurbishment project. Bruce Power's capital program for the restart and refurbishment work is expected to total approximately $4.25 billion and TransCanada's approximate $2.125 billion share will be financed through capital contributions to 2011. A capital cost risk and reward sharing schedule with OPA is in place for spending below or in excess of the $4.25 billion base case estimate. Work to restart Units 1 and 2 has commenced with the first unit expected to be online in 2009, subject to approval by the Canadian Nuclear Safety Commission The Canadian Nuclear Safety Commission (CNSC), previously known as the "Atomic Energy Control Board" (AECB), is best described as the nuclear energy and materials watchdog in Canada. . Restarting Units 1 and 2, which have a combined capacity of approximately 1,500 MW, will boost the Bruce facilities' overall output to more than 6,200 MW. As at December 31, 2005, Bruce A had capitalized $324 million with respect to the refurbishment project.
Western Operations
Western Operations Results-at-a-Glance (1)
Three months ended Year ended
December 31 December 31
(millions of dollars) 2005 2004 2005 2004
---------------------------------------------------------------------
Revenue
Power 235 160 715 606
Other (2) 50 33 158 120
---------------------------------------
285 193 873 726
---------------------------------------
Cost of sales
Power (163) (103) (476) (377)
Other (3) (37) (17) (104) (64)
---------------------------------------
(200) (120) (580) (441)
---------------------------------------
Other costs and expenses (47) (43) (149) (125)
Depreciation (5) (5) (21) (22)
---------------------------------------
Operating and other income 33 25 123 138
---------------------------------------
---------------------------------------
(1) ManChief is included until April 30, 2004.
(2) Includes Cancarb Thermax and natural gas sales.
(3) Includes the cost of natural gas sold.
Western Operations Sales Volumes (1)
Three months ended Year ended
December 31 December 31
(GWh) 2005 2004 2005 2004
---------------------------------------------------------------------
Supply
Generation 554 673 2,245 2,105
Purchased
Sundance A & B PPAs 1,837 1,757 6,974 6,842
Other purchases 684 706 2,687 2,748
---------------------------------------
3,075 3,136 11,906 11,695
---------------------------------------
---------------------------------------
Contracted vs. Spot
Contracted 2,804 2,848 10,374 10,705
Spot 271 288 1,532 990
---------------------------------------
3,075 3,136 11,906 11,695
---------------------------------------
---------------------------------------
(1) ManChief is included until April 30, 2004.
Western Operations' operating and other income of $33 million in fourth quarter 2005 was $8 million higher compared to fourth quarter 2004. Operating and other income was higher primarily due to increased margins in fourth quarter 2005 from higher market heat rates on uncontracted volumes of power generated. The market heat rate is determined by dividing the average price of power per MWh by the average price of natural gas per gigajoule (GJ) for a given period. Market heat rates increased by approximately 21 per cent in the quarter as a result of an approximate 112 per cent ($61.65 per MWh) increase in spot market power prices in fourth quarter 2005 compared to the same period in 2004, while average spot market natural gas prices in Alberta increased by approximately 75 per cent ($4.60 per GJ). Partially offsetting the positive impact of the increase in market heat rates was lower contributions from the Bear Creek cogeneration facility which remained on an unplanned outage throughout the quarter. A significant portion of plant generation in Western Operations in 2005 was sold under long-term contract to mitigate mit·i·gate v. To moderate in force or intensity. mit  i·gation n. price risk, although some output
was intentionally in·ten·tion·al adj. 1. Done deliberately; intended: an intentional slight. See Synonyms at voluntary. 2. Having to do with intention. not committed under long-term contract to assist in managing the overall portfolio of generation in Alberta. This approach to portfolio management assists in minimizing costs in situations where TransCanada would otherwise have to purchase electricity in the open market to fulfill ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. its contractual obligations. Operating and other income for the year ended December 31, 2005 was $123 million or $15 million lower compared to $138 million earned in 2004. This decrease was primarily due to reduced margins in 2005 resulting from overall lower market heat rates on uncontracted volumes of power generated, fee revenues earned in 2004 from Power LP, and lower contributions from Bear Creek. Western Operations' power sales revenues and power cost of sales increased in fourth quarter 2005 compared to fourth quarter 2004 primarily due to higher realized prices in fourth quarter 2005. Generation volumes of 554 GWh in fourth quarter 2005 decreased 119 GWh compared to fourth quarter 2004 primarily due to a planned maintenance outage in 2005 at MacKay Mackay (məkī`), city (1991 pop. 40,250), Queensland, NE Australia on the Pioneer River. A port city, Mackay exports sugar, beef, and coal. River and an unplanned outage at Bear Creek. Bear Creek continued to experience operational difficulties in fourth quarter 2005 and technical evaluation The study and investigations by a developing agency to determine the technical suitability of material, equipment, or a system for use in the Military Services. See also operational evaluation. continues regarding a long-term solution. In fourth quarter of 2005 and 2004, approximately nine per cent of power sales volumes were sold into the spot market. To reduce its exposure to spot market prices on uncontracted volumes, as at December 31, 2005, Western Operations had fixed price sales contracts to sell approximately 9,800 GWh for 2006 and approximately 6,000 GWh for 2007.
Eastern Operations
Eastern Operations Results-at-a-Glance (1)
Three months ended Year ended
December 31 December 31
(millions of dollars) 2005 2004 2005 2004
---------------------------------------------------------------------
Revenue
Power 125 120 505 535
Other (2) 158 70 412 238
---------------------------------------
283 190 917 773
---------------------------------------
Cost of sales
Power (32) (60) (215) (288)
Other (2) (136) (54) (373) (211)
---------------------------------------
(168) (114) (588) (499)
---------------------------------------
Other costs and expenses (40) (41) (167) (146)
Depreciation (7) (4) (25) (20)
---------------------------------------
Operating and other income 68 31 137 108
---------------------------------------
---------------------------------------
(1) Curtis Palmer is included until April 30, 2004.
(2) Other includes natural gas.
Eastern Operations Sales Volumes (1)
Three months ended Year ended
December 31 December 31
(GWh) 2005 2004 2005 2004
---------------------------------------------------------------------
Supply
Generation 873 365 2,879 1,467
Purchased 489 1,117 2,627 4,731
---------------------------------------
1,362 1,482 5,506 6,198
---------------------------------------
---------------------------------------
Contracted vs. Spot
Contracted 1,154 1,473 4,919 6,055
Spot 208 9 587 143
---------------------------------------
1,362 1,482 5,506 6,198
---------------------------------------
---------------------------------------
(1) Curtis Palmer is included until April 30, 2004.
Operating and other income in fourth quarter 2005 from Eastern Operations of $68 million was $37 million higher compared to $31 million in fourth quarter 2004. The increase was primarily due to income resulting from the April 1, 2005 acquisition of the TC Hydro hydroelectric generation assets and from the Grandview cogeneration facility placed into service in January 2005. Partially offsetting these increases was a $16 million pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta ($10 million after-tax) restructuring transaction gain in fourth quarter 2004 relating to power purchase contracts and a loss of operating income primarily associated with the expiration of certain long-term sales contracts in 2004. Operating and other income for the year ended December 31, 2005 was $137 million or $29 million higher than the $108 million earned in 2004. Incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. income from the acquisition of the TC Hydro assets and income from the Grandview cogeneration facility were the primary reasons for the increase. Partially offsetting these increases were a $16 million pre-tax ($10 million after-tax) contract restructuring payment made by OSP to its natural gas fuel suppliers in first quarter 2005, a $16 million pre-tax ($10 million after-tax) reduction in income as a result of the sale of Curtis Palmer to Power LP in April 2004 and a loss of operating income primarily associated with the expiration of long-term sales contracts. The contract restructuring at OSP reduced the term of the long-term natural gas supply contracts by approximately three years (now ending in October 2008) and adjusted the pricing to track spot market pricing of natural gas at the Niagara Niagara, river, United States and Canada Niagara (nīăg`rə), river, 34 mi (55 km) long, issuing from Lake Erie between Buffalo, N.Y., and Fort Erie, Ont., Canada. delivery point instead of the previously arbitrated pricing that had resulted in above-market cost of natural gas for OSP. Generation volumes in fourth quarter 2005 increased 508 GWh to 873 GWh compared to fourth quarter 2004 primarily due to the acquisition of the TC Hydro assets and the placing into service of the Grandview cogeneration facility. Partially offsetting these increases was reduced generation from the OSP facility resulting from a planned maintenance outage at OSP Phase II which was completed in January 2006. Eastern Operations' power sales revenues of $125 million increased $5 million in fourth quarter 2005 due to higher realized prices resulting from increased sales generation volumes into a higher priced wholesale spot market partially offset by lower volumes sold. The increased sales to the wholesale spot market were primarily due to high water flows through the TC Hydro facilities. Sales volumes of 1,362 GWh for fourth quarter 2005 were lower than the same period in 2004 due primarily to the expiration of certain long-term sales contracts in 2004. Power cost of sales of $32 million was lower in fourth quarter 2005 due to the impact of lower purchased power volumes partially offset by higher prices for purchased power. Purchased power volumes of 489 GWh were significantly lower in fourth quarter 2005 due to lower contracted sales volumes and the incremental power generation from the purchase of the TC Hydro assets. Volumes generated from the TC Hydro assets reduced the requirement to purchase power to fulfill contractual sales obligations. Fourth quarter 2005 other revenue and other cost of sales of $158 million and $136 million, respectively, increased year-over-year primarily as a result of natural gas purchased and resold under the new natural gas supply contracts at OSP. Other costs and expenses in fourth quarter 2005 of $40 million, which include fuel gas consumed con·sume v. con·sumed, con·sum·ing, con·sumes v.tr. 1. To take in as food; eat or drink up. See Synonyms at eat. 2. a. in generation, was relatively unchanged from the prior year as the operating costs operating costs npl → gastos mpl operacionales of the TC Hydro assets were offset by a decrease in fuel usage costs at the OSP facility. In fourth quarter 2005, approximately 15 per cent of power sales volumes were sold into the spot market compared to approximately one per cent in fourth quarter 2004 reflecting the sale of a portion of the generation from the TC Hydro assets into the spot market. Eastern Operations is focused on selling the majority of its power under contract to wholesale, commercial and industrial customers while managing a portfolio of power supplies sourced from its own generation and wholesale power purchases. To reduce its exposure to spot market prices, as at December 31, 2005, Eastern Operations had entered into fixed price sales contracts to sell approximately 5,000 GWh of power for 2006 and approximately 3,500 GWh of power for 2007, although certain contracted volumes are dependent on customer usage levels. General, Administrative, Support Costs and Other General, administrative, support costs and other of $28 million and $102 million for the three months and year ended December 31, 2005, respectively, increased $9 million and $13 million, respectively, compared to the same periods in 2004. The increases were primarily due to higher business development costs expensed in 2005 and the positive impact in 2004 of the recognition of unrealized foreign exchange gains on Power LP's U.S. dollar denominated debt.
Sales Volumes and Plant Availability
Power Sales Volumes
Three months ended Year ended
December 31 December 31
(GWh) 2005 2004 2005 2004
---------------------------------------------------------------------
Bruce Power (1) 2,946 2,351 10,732 10,608
Western operations (2) 3,075 3,136 11,906 11,695
Eastern operations (2) 1,362 1,482 5,506 6,198
Power LP investment (2) (3) - 669 1,865 2,419
---------------------------------------
Total 7,383 7,638 30,009 30,920
---------------------------------------
---------------------------------------
(1) Sales volumes reflect TransCanada's proportionate share of Bruce
Power output.
(2) ManChief and Curtis Palmer volumes are included in Power LP
investment effective April 30, 2004.
(3) TransCanada operated and managed Power LP until August 31, 2005.
The volumes in the table represent 100 percent of Power LP's
sales volumes up to August 31, 2005.
Three months ended Year ended
Weighted Average Plant December 31 December 31
Availability (1) 2005 2004 2005 2004
---------------------------------------------------------------------
Bruce Power (2) 79% 72% 80% 82%
Western operations (3) 81% 92% 85% 95%
Eastern operations (3) (4) 90% 88% 83% 95%
Power LP investment (3) (5) - 98% 94% 97%
All plants, excluding Bruce
Power investment 88% 93% 87% 96%
All plants 84% 85% 84% 90%
----------------------------------------
----------------------------------------
(1) Plant availability represents the percentage of time in the
period that the plant is available to generate power, whether
actually running or not and is reduced by planned and unplanned
outages.
(2) Unit 3 is included effective March 1, 2004.
(3) ManChief and Curtis Palmer are included in Power LP investment
effective April 30, 2004.
(4) TC Hydro is included in Eastern Operations effective April 1,
2005.
(5) Power LP is included to August 31, 2005.
Corporate Net expenses for the three months and year ended December 31, 2005 were $7 million and $36 million, respectively, compared to $3 million and $2 million for the corresponding periods in 2004. The $4 million increase in Corporate net expenses for the three months ended December 31, 2005 compared to the same period in 2004 was primarily due to increased net interest costs offset by an income tax refund received in fourth quarter 2005 relating to prior years. The $34 million increase in net expenses in 2005 compared to 2004 was primarily due to increased interest expense on higher average long-term debt and commercial paper balances in 2005 as well as the release in third quarter 2004 of previously established restructuring provisions. Income tax refunds and positive tax adjustments were comparable in 2004 and 2005. Other Recent Developments Gas Transmission Wholly-Owned Pipelines Canadian Mainline mainline Drug slang verb To inject a drug During fourth quarter 2005, the NEB announced that the formula-based ROE for 2006 is 8.88 per cent. In December 2005, the NEB approved the tolls for transportation services that TransCanada proposed to charge on an interim basis, effective January 1, 2006. TransCanada is currently engaged in settlement discussions with its stakeholders on matters related to the Canadian Mainline's 2006 tolls and tariff. Alberta System TransCanada continued to charge interim tolls throughout 2005 for transportation service on the Alberta System. The interim tolls, approved by the EUB in December 2004, will remain in effect until final tolls are established following the Phase II proceeding of the Alberta System's 2005 GRA. In this second phase of the EUB's rate making process, the allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as of 2005 approved costs among transportation services and rate design will be determined. The EUB commenced a hearing for Phase II on October 4, 2005. The two week oral hearing on Phase II concluded October 19 with written argument and reply filed November 10 and November 24, respectively. A decision is expected in February February: see month. 2006. During fourth quarter 2005, the EUB announced that the formula-based ROE for 2006 is 8.93 per cent. Foothills and BC Systems Following an agreement with CAPP and other stakeholders to increase the deemed equity component of the capital structure from 30 per cent to 36 per cent for the Foothills and BC Systems and discussions with its shippers on those two systems, on December 2, 2005, TransCanada filed applications with the NEB for final 2006 tolls. Both the Foothills System and BC System 2006 toll applications reflect a deemed common equity ratio of 36 per cent. On December 21, 2005, the NEB approved the Foothills System 2006 tolls as final tolls, effective January 1, 2006. On the BC System, no issue was raised with respect to the capital structure; however a concern was raised with respect to proposed pricing of Short-Term Firm Service (STFS STFS Storm Tide Forecasting Service (UK Met Office) STFS Standard Time and Frequency Signal STFS Seattle Tree Fruit Society STFS Space Telescope Flight Software STFS SFS/Thor File System STFS Short-Term Frequency Stability ). Therefore, the NEB approved the applied-for BC System tolls on an interim basis, effective January 1, 2006, pending the final resolution of the STFS concern. Other Gas Transmission Keystone In November 2005, TransCanada signed a Memorandum of Understanding with ConocoPhillips Company and CPPL which commits ConocoPhillips Company to ship crude oil on the proposed Keystone pipeline, and gives CPPL the right to acquire up to a fifty per cent ownership interest in the pipeline. On January 31, 2006, TransCanada announced it has securred firm, long-term contracts totalling 340,000 barrels per day through the binding Open Season held during fourth quarter 2005. The Keystone pipeline, expected to cost approximately US$2.1 billion, will be capable of transporting approximately 435,000 barrels per day of crude oil from Hardisty, Alberta to Patoka, Illinois through a 2,950 kilometre pipeline system. Broadwater TransCanada, on behalf of the Broadwater Energy project, filed on January 30, 2006, a formal application with FERC for federal approval to construct and operate the Broadwater project. The proposed facility, which would be located in the New York State waters of Long Island Sound, would be capable of receiving, storing, and re-gasifying imported liquefied natural gas with an average annual send-out capacity of approximately one bcf a day of natural gas. The estimated cost of construction is US$700 million to $1 billion. Broadwater is being developed jointly by TransCanada and Shell US Gas and Power. Mackenzie The Mackenzie Gas Pipeline Project continued to progress in fourth quarter 2005, with substantial milestones being achieved in reaching agreement with certain of the northern aboriginal groups as to the terms of land access for the pipeline right of way. In late 2005, the project proponents agreed to proceed to the public hearings phase of the regulatory process. Hearings in this respect commenced in January, 2006 and are expected to continue throughout the year. In 2003, TransCanada entered into an agreement with the Mackenzie Valley Aboriginal Pipeline Limited Partnership (known as the APG) by which TransCanada agreed to finance the APG's one-third share of the pipeline pre-development costs associated with the Mackenzie Gas Pipeline Project. TransCanada's advances to the APG were originally estimated to total approximately $90 million, with an acknowledgement that these costs could rise as a result of project delays and increased project costs. Given that the project has experienced delays and is entering into a protracted pro·tract tr.v. pro·tract·ed, pro·tract·ing, pro·tracts 1. To draw out or lengthen in time; prolong: disputants who needlessly protracted the negotiations. 2. regulatory hearing process, the total loan advances by TransCanada on behalf of the APG are currently forecast to increase to approximately $145 million. As at December 31, 2005, TransCanada had funded $87 million of this advance. Power Sheerness PPA Effective December 31, 2005, TransCanada acquired the remaining rights and obligations of the 756 MW Sheerness PPA from the Alberta Balancing Pool for $585 million. There is an approximate 15 year term remaining on the PPA. Other Canadian Medium-Term Notes Issue In January 2006, the company's wholly-owned subsidiary, TCPL, issued $300 million of five-year medium-term notes bearing interest of 4.3 per cent under its Canadian base shelf program. Calpine
Calpine Corporation and certain of its subsidiaries (Calpine) filed for bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most protection on December 20, 2005. Calpine has transportation contracts on certain of TransCanada's Canadian and U.S. pipelines. TransCanada presently holds the maximum financial assurances allowable under the respective tariffs This is a list of tariffs and trade legislation:
tr.v. re·ject·ed, re·ject·ing, re·jects 1. To refuse to accept, submit to, believe, or make use of. 2. To refuse to consider or grant; deny. 3. their transportation contracts. TransCanada is monitoring the Calpine bankruptcy closely regarding any actions/decisions that take place and their impacts.
Consolidated Income
Three months ended Year ended
(millions of dollars except December 31 December 31
per share amounts) 2005 2004 2005 2004
---------------------------------------------------------------------
Revenues 1,771 1,480 6,124 5,497
Operating Expenses
Cost of sales 368 234 1,168 940
Other costs and expenses 576 460 1,889 1,615
Depreciation 265 246 1,017 948
---------------------------------------
1,209 940 4,074 3,503
---------------------------------------
Operating Income 562 540 2,050 1,994
Other Expenses/(Income)
Financial charges 211 221 836 858
Financial charges of
joint ventures 17 15 66 63
Equity income (51) (26) (247) (213)
Interest income and other (14) (1) (63) (59)
Gain on sale of Paiton Energy (118) - (118) -
Gains related to Power LP - - (245) (197)
Gain on sale of
PipeLines LP units - - (82) -
Gain on sale of Millennium - - - (7)
---------------------------------------
45 209 147 445
---------------------------------------
Income from Continuing
Operations before Income
Taxes and Non-Controlling
Interests 517 331 1,903 1,549
Income Taxes
Current 121 85 550 414
Future 22 39 60 77
---------------------------------------
143 124 610 491
---------------------------------------
Non-Controlling Interests
Preferred share dividends 5 5 22 22
Other 19 17 62 56
---------------------------------------
24 22 84 78
---------------------------------------
Net Income from Continuing
Operations 350 185 1,209 980
Net Income from Discontinued
Operations - - - 52
---------------------------------------
Net Income 350 185 1,209 1,032
---------------------------------------
---------------------------------------
Net Income Per Share
Basic
Continuing operations $0.72 $0.38 $2.49 $2.02
Discontinued operations - - - 0.11
---------------------------------------
$0.72 $0.38 $2.49 $2.13
---------------------------------------
---------------------------------------
Diluted
Continuing operations $0.71 $0.38 $2.47 $2.01
Discontinued operations - - - 0.11
---------------------------------------
$0.71 $0.38 $2.47 $2.12
---------------------------------------
---------------------------------------
Average Shares
Outstanding (millions)
Basic 487.1 484.7 486.2 484.1
---------------------------------------
---------------------------------------
Diluted 490.4 487.1 489.1 486.7
---------------------------------------
---------------------------------------
Consolidated Cash Flows
Three months ended Year ended
December 31 December 31
(millions of dollars) 2005 2004 2005 2004
---------------------------------------------------------------------
Cash Generated From Operations
Net income from continuing
operations 350 185 1,209 980
Depreciation 265 246 1,017 948
Gain on sale of Paiton Energy,
net of current tax (121) - (121) -
Gain on sale of PipeLines LP
units, net of current tax - - (31) -
Gains related to Power LP,
net of current tax - - (166) (197)
Gain on sale of Millennium,
net of current tax - - - (7)
Equity income in excess of
distributions received (1) (3) (71) (113)
Future income taxes 22 39 60 77
Non-controlling interests 24 22 84 78
Pension funding in excess
of expense (4) (8) (9) (29)
Other (5) (6) (21) (34)
---------------------------------------
Funds generated from
operations 530 475 1,951 1,703
Decrease/(increase) in
operating working capital 124 (23) (49) 29
---------------------------------------
Net cash provided by
operations 654 452 1,902 1,732
---------------------------------------
Investing Activities
Capital expenditures (345) (203) (754) (530)
Acquisitions, net of
cash acquired (685) (1,453) (1,317) (1,516)
Disposition of assets, net
of current tax 125 2 671 410
Deferred amounts and other (29) (4) 64 (12)
---------------------------------------
Net cash used in investing
activities (934) (1,658) (1,336) (1,648)
---------------------------------------
Financing Activities
Dividends on common shares (148) (139) (586) (552)
Distributions paid to
non-controlling interest (12) (20) (74) (87)
Notes payable issued, net 579 546 416 179
Long-term debt issued - 398 799 1,090
Reduction of long-term debt (151) (487) (1,113) (1,005)
Long-term debt of joint
ventures issued 33 79 38 217
Reduction of long-term
debt of joint ventures (61) (94) (80) (112)
Partnership units of joint
ventures issued - - - 88
Common shares issued 5 7 44 32
---------------------------------------
Net cash provided by/(used in)
financing activities 245 290 (556) (150)
---------------------------------------
Effect of Foreign Exchange
Rate Changes on Cash
and Short-Term Investments 1 (31) 11 (87)
---------------------------------------
(Decrease)/Increase in Cash
and Short-Term Investments (34) (947) 21 (153)
Cash and Short-Term Investments
Beginning of period 246 1,138 191 344
---------------------------------------
Cash and Short-Term Investments
End of period 212 191 212 191
---------------------------------------
---------------------------------------
Consolidated Balance Sheet
December 31, December 31,
(millions of dollars) 2005 2004
---------------------------------------------------------------------
ASSETS
Current Assets
Cash and short-term investments 212 191
Accounts receivable 796 616
Inventories 281 174
Other 277 120
---------------------------
1,566 1,101
Long-Term Investments 400 1,098
Plant, Property and Equipment 20,038 18,764
Other Assets 2,109 1,459
---------------------------
24,113 22,422
---------------------------
---------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Notes payable 962 546
Accounts payable 1,494 1,135
Accrued interest 222 214
Current portion of long-term debt 393 774
Current portion of long-term debt
of joint ventures 41 85
---------------------------
3,112 2,754
Deferred Amounts 1,196 783
Future Income Taxes 703 509
Long-Term Debt 9,640 9,749
Long-term Debt of Joint Ventures 937 808
Preferred Securities 536 554
---------------------------
16,124 15,157
---------------------------
Non-Controlling Interests
Preferred shares of subsidiary 389 389
Other 394 311
---------------------------
783 700
---------------------------
Shareholders' Equity
Common shares 4,755 4,711
Contributed surplus 272 270
Retained earnings 2,269 1,655
Foreign exchange adjustment (90) (71)
---------------------------
7,206 6,565
---------------------------
24,113 22,422
---------------------------
---------------------------
Consolidated Retained Earnings
Year ended December 31
(millions of dollars) 2005 2004
---------------------------------------------------------------------
Balance at beginning of year 1,655 1,185
Net income 1,209 1,032
Common share dividends (595) (562)
---------------------------
2,269 1,655
---------------------------
---------------------------
Segmented Information
Gas Transmission Power
--------------------------------------
Three months ended December 31
(millions of dollars) 2005 2004 2005 2004
---------------------------------------------------------------------
Revenues 1,086 1,077 685 403
Cost of sales - - (368) (234)
Other costs and expenses (389) (349) (187) (111)
Depreciation (235) (229) (30) (17)
--------------------------------------
Operating income/(loss) 462 499 100 41
Financial charges and
non-controlling interests (200) (228) - (2)
Financial charges of joint
ventures (13) (13) (4) (2)
Equity income 25 21 26 5
Interest income and other 4 2 - 3
Gain on sale of Paiton Energy - - 118 -
Income taxes (118) (124) (43) (14)
--------------------------------------
Net Income from Continuing
Operations 160 157 197 31
--------------------------------------
--------------------------------------
Net Income from Discontinued
Operations
---------------
Net Income
---------------
---------------
Corporate Total
--------------------------------------
Three months ended December 31
(millions of dollars) 2005 2004 2005 2004
---------------------------------------------------------------------
Revenues - - 1,771 1,480
Cost of sales - - (368) (234)
Other costs and expenses - - (576) (460)
Depreciation - - (265) (246)
--------------------------------------
Operating income/(loss) - - 562 540
Financial charges and
non-controlling interests (35) (13) (235) (243)
Financial charges of joint
ventures - - (17) (15)
Equity income - - 51 26
Interest income and other 10 (4) 14 1
Gain on sale of Paiton Energy - - 118 -
Income taxes 18 14 (143) (124)
--------------------------------------
Net Income from Continuing
Operations (7) (3) 350 185
------------------
------------------
Net Income from Discontinued
Operations - -
---------------
Net Income 350 185
---------------
---------------
Gas Transmission Power
--------------------------------------
Year ended December 31
(millions of dollars) 2005 2004 2005 2004
---------------------------------------------------------------------
Revenues 4,163 3,929 1,961 1,568
Cost of sales - - (1,168) (940)
Other costs and expenses (1,380) (1,228) (505) (384)
Depreciation (938) (876) (79) (72)
--------------------------------------
Operating income/(loss) 1,845 1,825 209 172
Financial charges and
non-controlling interests (788) (848) (2) (9)
Financial charges of joint
ventures (57) (59) (9) (4)
Equity income 79 83 168 130
Interest income and other 25 8 5 14
Gain on sale of Paiton Energy - - 118 -
Gains related to Power LP - - 245 197
Gain on sale of PipeLines
LP units 82 - - -
Gain on sale of Millennium - 7 - -
Income taxes (502) (430) (173) (104)
--------------------------------------
Net Income from Continuing
Operations 684 586 561 396
--------------------------------------
--------------------------------------
Net Income from Discontinued
Operations
---------------
Net Income
---------------
---------------
Corporate Total
--------------------------------------
Year ended December 31
(millions of dollars) 2005 2004 2005 2004
---------------------------------------------------------------------
Revenues - - 6,124 5,497
Cost of sales - - (1,168) (940)
Other costs and expenses (4) (3) (1,889) (1,615)
Depreciation - - (1,017) (948)
--------------------------------------
Operating income/(loss) (4) (3) 2,050 1,994
Financial charges and
non-controlling interests (130) (79) (920) (936)
Financial charges of joint
ventures - - (66) (63)
Equity income - - 247 213
Interest income and other 33 37 63 59
Gain on sale of Paiton Energy - - 118 -
Gains related to Power LP - - 245 197
Gain on sale of PipeLines LP units - - 82 -
Gain on sale of Millennium - - - 7
Income taxes 65 43 (610) (491)
--------------------------------------
Net Income from Continuing
Operations (36) (2) 1,209 980
------------------
------------------
Net Income from Discontinued
Operations - 52
-----------------
Net Income 1,209 1,032
-----------------
-----------------
Teleconference - Audio and Slide Presentation TransCanada will hold a teleconference today at 11 a.m. (Mountain) / 1 p.m. (Eastern) to discuss the fourth quarter 2005 financial results and general developments and issues concerning the company. Analysts, members of the media and other interested parties wanting to participate should phone 1-866-226-1799 or 416-340-2220 (Toronto Toronto (tərŏn`tō), city (1998 est pop. 2,400,000), provincial capital, S Ont., Canada, on Lake Ontario. Toronto is the largest city in Canada and since the 1970s has been one of the fastest-changing cities in North America, experiencing area) at least 10 minutes prior to the start of the teleconference. No passcode is required. A live audio and slide presentation webcast of the teleconference will also be available on TransCanada's website at www.transcanada.com. The conference will begin with a short address by members of TransCanada's executive management, followed by a question and answer period for investment analysts. A question and answer period for members of the media will immediately follow. A replay of the teleconference will be available two hours after the conclusion of the call until midnight (Eastern) February 7, 2006 by dialing 1-800-408-3053 or 416-695-5800 (Toronto area) and entering passcode 3173826. The webcast will be archived and available for replay on www.transcanada.com. About TransCanada TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure. TransCanada's network of approximately 41,000 kilometres (25,600 miles) of pipeline transports the majority of Western Canada's natural gas production to key Canadian and U.S. markets. A growing independent power producer, TransCanada owns, or has interests in, approximately 6,700 megawatts of power generation in Canada and the United States The United States and Canada share a unique legal relationship. U.S. law looks northward with a mixture of optimism and cooperation, viewing Canada as an integral part of U.S. economic and environmental policy. . TransCanada's common shares trade on the Toronto and New York stock exchanges New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol TRP Trp tryptophan. TRP traumatic reticuloperitonitis. Trp tryptophan. . Forward-Looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. Information Certain information in this news release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in this information may differ from actual results or events. Factors which could cause actual results or events to differ materially from current expectations include, among other things, the ability of TransCanada to successfully implement its strategic initiatives and whether such strategic initiatives will yield the expected benefits, proper execution and completion of major pipeline and power infrastructure projects, the availability and price of energy commodities, regulatory decisions, competitive factors in the pipeline and power industry sectors, and the prevailing economic conditions in North America. For additional information on these and other factors, see the reports filed by TransCanada with Canadian securities regulators and with the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Securities and Exchange Commission. TransCanada disclaims any intention or obligation to update or revise any forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , whether as a result of new information, future events or otherwise. TransCanada welcomes questions from shareholders and potential investors. Please telephone: Investor Relations, at 1-800-361-6522 (Canada and U.S. Mainland) or direct dial David Moneta at (403) 920-7911. The investor fax line is (403) 920-2457. Media Relations: Jennifer Varey at (403) 920-7859 Visit TransCanada's Internet site at: http://www.transcanada.com TRANSCANADA (NYSE NYSE See: New York Stock Exchange :TRP) (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :TRP) |
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