TC PipeLines Announces Proposed Expansion of Tuscarora Pipeline System

Apr 12, 2001, 01:00 ET from TC Pipelines, LP

    CALGARY, April 12 /PRNewswire/ - (Nasdaq NM: TCLPZ) - TC PipeLines, LP
 today announced that Tuscarora Gas Transmission Company, of which TC PipeLines
 holds a 49% interest, has filed an application with the Federal Energy
 Regulatory Commission to expand its pipeline system to meet new service
 requests. If approved, the expansion would begin commercial operations in late
 2002. The proposed expansion consists of three compressor stations and a 14-
 mile pipeline extension from the current terminus of the Tuscarora pipeline
 system near Reno, Nevada, to Wadsworth, Nevada. The capital cost of the
 project is approximately $60 million.
     When constructed, capacity on Tuscarora's expanded pipeline system will
 increase from approximately 124 million cubic feet per day to approximately
 220 million cubic feet per day. The Tuscarora expansion is supported by long-
 term, firm transportation contracts that are contingent upon completion of the
 expansion, ranging from ten to fifteen years, for the full expansion volume.
 These contracts are required to meet new power generation loads, as well as
 growth in existing local distribution company markets.
     "The contracts that underpin this project demonstrate that there is a
 growing demand for natural gas in the markets served by Tuscarora and that
 Tuscarora is well positioned to capture that growth," said Ron Turner,
 President and Chief Executive Officer of TC PipeLines GP, Inc., general
 partner of TC PipeLines. "When placed into service, we expect the Tuscarora
 expansion to result in accretive cash flows to TC PipeLines on a per unit
 basis."
     Tuscarora is a Nevada general partnership that owns a 229-mile United
 States interstate pipeline system that transports natural gas from Oregon,
 where it interconnects with the facilities of PG&E National Energy Group, Gas
 Transmission Northwest, to the northern Nevada market. The Tuscarora pipeline
 system was constructed in 1995 and currently has a throughput capacity of
 approximately 124 million cubic feet of natural gas per day.
     TC PipeLines, LP is a publicly held limited partnership. In addition to
 the Partnership's 49% ownership interest in Tuscarora, it owns a 30% interest
 in Northern Border Pipeline Company, a Texas general partnership. Northern
 Border Pipeline owns a 1,214-mile United States interstate pipeline system
 that transports natural gas from the Montana-Saskatchewan border to markets in
 the midwestern United States. TC PipeLines, LP is managed by its general
 partner, TC PipeLines GP, Inc., a wholly owned subsidiary of TransCanada
 PipeLines Limited. Subsidiaries of TransCanada also hold common and
 subordinated units of the Partnership. Common units of TC PipeLines, LP are
 quoted on the Nasdaq Stock Market and trade under the symbol "TCLPZ". For more
 information about TC PipeLines, LP, visit the Partnership's website at
 www.tcpipelineslp.com.
 
     Certain statements in this news release are forward-looking and relate
 to, among other things, anticipated financial performance, business prospects
 and strategies. By their nature, such statements are subject to various risks
 and uncertainties which could cause TC PipeLines' actual results and
 experience to differ materially from the anticipated results.  Such risks and
 uncertainties include, but are not limited to: regulatory decisions,
 particularly those of the Federal Energy Regulatory Commission; cost of
 acquisitions; future demand for natural gas; overcapacity in the industry; and
 prevailing economic conditions, particularly conditions of the capital and
 equity markets.  For further information on additional risks and
 uncertainties, you are advised to consult TC PipeLines' 2000 Report on Form 10-
 K under the heading "Forward Looking Information".
 
 

SOURCE TC Pipelines, LP
    CALGARY, April 12 /PRNewswire/ - (Nasdaq NM: TCLPZ) - TC PipeLines, LP
 today announced that Tuscarora Gas Transmission Company, of which TC PipeLines
 holds a 49% interest, has filed an application with the Federal Energy
 Regulatory Commission to expand its pipeline system to meet new service
 requests. If approved, the expansion would begin commercial operations in late
 2002. The proposed expansion consists of three compressor stations and a 14-
 mile pipeline extension from the current terminus of the Tuscarora pipeline
 system near Reno, Nevada, to Wadsworth, Nevada. The capital cost of the
 project is approximately $60 million.
     When constructed, capacity on Tuscarora's expanded pipeline system will
 increase from approximately 124 million cubic feet per day to approximately
 220 million cubic feet per day. The Tuscarora expansion is supported by long-
 term, firm transportation contracts that are contingent upon completion of the
 expansion, ranging from ten to fifteen years, for the full expansion volume.
 These contracts are required to meet new power generation loads, as well as
 growth in existing local distribution company markets.
     "The contracts that underpin this project demonstrate that there is a
 growing demand for natural gas in the markets served by Tuscarora and that
 Tuscarora is well positioned to capture that growth," said Ron Turner,
 President and Chief Executive Officer of TC PipeLines GP, Inc., general
 partner of TC PipeLines. "When placed into service, we expect the Tuscarora
 expansion to result in accretive cash flows to TC PipeLines on a per unit
 basis."
     Tuscarora is a Nevada general partnership that owns a 229-mile United
 States interstate pipeline system that transports natural gas from Oregon,
 where it interconnects with the facilities of PG&E National Energy Group, Gas
 Transmission Northwest, to the northern Nevada market. The Tuscarora pipeline
 system was constructed in 1995 and currently has a throughput capacity of
 approximately 124 million cubic feet of natural gas per day.
     TC PipeLines, LP is a publicly held limited partnership. In addition to
 the Partnership's 49% ownership interest in Tuscarora, it owns a 30% interest
 in Northern Border Pipeline Company, a Texas general partnership. Northern
 Border Pipeline owns a 1,214-mile United States interstate pipeline system
 that transports natural gas from the Montana-Saskatchewan border to markets in
 the midwestern United States. TC PipeLines, LP is managed by its general
 partner, TC PipeLines GP, Inc., a wholly owned subsidiary of TransCanada
 PipeLines Limited. Subsidiaries of TransCanada also hold common and
 subordinated units of the Partnership. Common units of TC PipeLines, LP are
 quoted on the Nasdaq Stock Market and trade under the symbol "TCLPZ". For more
 information about TC PipeLines, LP, visit the Partnership's website at
 www.tcpipelineslp.com.
 
     Certain statements in this news release are forward-looking and relate
 to, among other things, anticipated financial performance, business prospects
 and strategies. By their nature, such statements are subject to various risks
 and uncertainties which could cause TC PipeLines' actual results and
 experience to differ materially from the anticipated results.  Such risks and
 uncertainties include, but are not limited to: regulatory decisions,
 particularly those of the Federal Energy Regulatory Commission; cost of
 acquisitions; future demand for natural gas; overcapacity in the industry; and
 prevailing economic conditions, particularly conditions of the capital and
 equity markets.  For further information on additional risks and
 uncertainties, you are advised to consult TC PipeLines' 2000 Report on Form 10-
 K under the heading "Forward Looking Information".
 
 SOURCE TC Pipelines, LP