TRANSCANADA PIPELINES LIMITED AMENDED ANNUAL INFORMATION FORM February 14, 2011 TRANSCANADA PIPELINES LIMITED 1 TABLE OF CONTENTS PRESENTATION OF INFORMATION .................................................................................................................................................................. 2 FORWARD LOOKING INFORMATION............................................................................................................................................................... 2 TRANSCANADA PIPELINES LIMITED................................................................................................................................................................ 3 Corporate Structure......................................................................................................................................................................................3 Intercorporate Relationships..........................................................................................................................................................................4 GENERAL DEVELOPMENT OF THE BUSINESS ............................................................................................................................................... 5 Developments in the Natural Gas Pipelines Business ..................................................................................................................................5 Developments in the Oil Pipelines Business................................................................................................................................................7 Developments in the Energy Business .........................................................................................................................................................8 BUSINESS OF TCPL ............................................................................................................................................................................................... 10 Natural Gas Pipelines Business..................................................................................................................................................................10 Oil Pipelines Business................................................................................................................................................................................13 Regulation of the Natural Gas and Oil Pipelines Businesses .....................................................................................................................13 Energy Business.........................................................................................................................................................................................14 GENERAL................................................................................................................................................................................................................. 16 Employees..................................................................................................................................................................................................16 Social and Environmental Policies.............................................................................................................................................................16 Environmental Protection ..........................................................................................................................................................................17 RISK FACTORS....................................................................................................................................................................................................... 18 Environmental Risk Factors.......................................................................................................................................................................18 Other Risk Factors .....................................................................................................................................................................................20 DIVIDENDS .............................................................................................................................................................................................................. 20 DESCRIPTION OF CAPITAL STRUCTURE ...................................................................................................................................................... 20 Share Capital..............................................................................................................................................................................................20 Debt ...........................................................................................................................................................................................................21 CREDIT RATINGS.................................................................................................................................................................................................. 21 DBRS Limited (DBRS) .............................................................................................................................................................................22 Moody's Investors Service, Inc. (Moody's)................................................................................................................................................22 Standard & Poor's (S&P) ...........................................................................................................................................................................22 MARKET FOR SECURITIES ................................................................................................................................................................................ 23 Common Shares.........................................................................................................................................................................................23 Series 1 Preferred Shares ...........................................................................................................................................................................23 Series 3 Preferred Shares ...........................................................................................................................................................................24 Series 5 Preferred Shares ...........................................................................................................................................................................24 Series U Preferred Shares and Series Y Preferred Shares ..........................................................................................................................24 DIRECTORS AND OFFICERS .............................................................................................................................................................................. 24 Directors ....................................................................................................................................................................................................25 Board Committees .....................................................................................................................................................................................26 Officers ......................................................................................................................................................................................................27 Conflicts of Interest....................................................................................................................................................................................28 CORPORATE GOVERNANCE.............................................................................................................................................................................. 28 AUDIT COMMITTEE ............................................................................................................................................................................................. 28 Relevant Education and Experience of Members.......................................................................................................................................28 Pre-Approval Policies and Procedures.......................................................................................................................................................29 External Auditor Service Fees ...................................................................................................................................................................29 INDEBTEDNESS OF DIRECTORS AND EXECUTIVE OFFICERS ................................................................................................................ 30 SECURITIES OWNED BY DIRECTORS ............................................................................................................................................................. 30 COMPENSATION OF DIRECTORS....................................................................................................................................................................