# Presentation: 632411

## Workshop on Stress Corrosion CrackingOperator Panel

- Houston, TX
- December 2, 2003

## Agenda

- Introduction to TransCanada
- Historical Performance & Challenges
- Our Regulatory Environment
- TransCanada SCC Management
- Research & Sharing Experiences
- Summary of Key Messages

- TransCanada

## 
TransCanada Corporation (TRP) listed TSX and NYSE

Employees:	2,400 
Total assets:	$ 19.9 billion
Operating income: 	$2.2 billion
Net income:	 $747 million
Net income per share: 	$1.56

*  In $ Cdn at December 31, 2002

*at December 31, 2000

- TransCanada Corporation (TRP) listed TSX and NYSE
- Employees:	2,400
- Total assets:	$ 19.9 billion
- Operating income: 	$2.2 billion
- Net income:	 $747 million
- Net income per share: 	$1.56
- *  In $ Cdn at December 31, 2002
- *at December 31, 2000

- Corporate statistics

- TransCanada

## Power Generation Assets

**Xxx**
**xxx**** **

**TransCanada Power, L.P. **
**7 plants; 328 MW**

**TransCanada 20 plants; **
**4,700 MW**** (****including LP and plants in development)**

**MacKay River**

**Redwater**

**Sundance A&B**

**Bear Creek**

**Williams**
**Lake**

**Carseland**

**Cancarb**

**ManChief**

**Nipigon**

**Calstock**

**Tunis**

**Kapuskasing**

**Bruce Power**

**Ocean State**

**Castleton**

**Bécancour**

**North Bay**

**Grandview**

**Curtis Palmer**

- TransCanada

## Natural gas transmission assets

- 24,000 miles of wholly owned pipeline; 12 Bcf/day

- TransCanada

## Historical Performance & Challenges

- TransCanada

## National Energy Board (NEB)
Onshore Pipeline Regulations - 1999
Guidance Notes
Alberta Energy & Utilities Board (EUB)
Pipeline Act 122/87

Regulation recognizes diversity in industry
Mix of Prescriptive and Goal-Oriented Regulation
“to ensure the pipelines are suitable for continued safe, reliable and environmentally responsible service.”
Onus on companies to demonstrate adequacy and effectiveness of integrity management systems

- Onshore Pipeline Regulations - 1999
- Guidance Notes
- Alberta Energy & Utilities Board (EUB)
- Pipeline Act 122/87
- Regulation recognizes diversity in industry
- Mix of Prescriptive and Goal-Oriented Regulation
- “to ensure the pipelines are suitable for continued safe, reliable and environmentally responsible service.”
- Onus on companies to demonstrate adequacy and effectiveness of integrity management systems

- Our Regulatory Environment

- TransCanada

## First SCC ruptures occurred in 1985-86
Near-Neutral pH SCC first recognized on the TC system
tape and asphalt-coated pipe approx. 40% of system length
Active SCC management began in 1986
Soil model prioritized sections for hydrostatic testing
Public Inquiry in 1995-96
CEPA SCC Management Program endorsed by membership and NEB
SCC Management Plans were filed
Today we have a risk-based Integrity Management Process

- Near-Neutral pH SCC first recognized on the TC system
- tape and asphalt-coated pipe approx. 40% of system length
- Active SCC management began in 1986
- Soil model prioritized sections for hydrostatic testing
- Public Inquiry in 1995-96
- CEPA SCC Management Program endorsed by membership and NEB
- SCC Management Plans were filed
- Today we have a risk-based Integrity Management Process

- TransCanada SCC Management

- TransCanada

## TransCanada SCC Management

- TransCanada

## Data Management 
thousands of inspection excavations since 1986
dozens of hydrotests
service failure data
construction data
operating data
terrain data
population data
System-Wide 
Digital On-Line

- thousands of inspection excavations since 1986
- dozens of hydrotests
- service failure data
- construction data
- operating data
- terrain data
- population data
- System-Wide
- Digital On-Line

- TransCanada SCC Management

- TransCanada SCC Management

- TransCanada

## TransCanada SCC Management

- Failure Probability Models
- Combined Statistical and Mechanistic
- Models for development phases:    Initiation, Growth, Failure
- Incorporate Soil Data as well as Other Types
- Validated against Condition Monitoring Data
- Quantitative
- Consequence Model

- Risk Assessment and Decision Making

- TransCanada

## Routine Maintenance - Acceptable Risk
includes monitoring industry developments

SCC Risk Control - Unacceptable Risk
hydrotesting is the primary action
test 200 - 350 miles of pipeline annually 
working toward in-line inspection and repair

SCC Condition Monitoring - Insufficient Information
excavations and data collection
failure or failure-like sites
model-development sites
system coverage

- includes monitoring industry developments
- SCC Risk Control - Unacceptable Risk
- hydrotesting is the primary action
- test 200 - 350 miles of pipeline annually
- working toward in-line inspection and repair
- SCC Condition Monitoring - Insufficient Information
- excavations and data collection
- failure or failure-like sites
- model-development sites
- system coverage

- TransCanada SCC Management

- TransCanada

## Experience Sharing
CEPA, PRCI, INGAA
share experience 
raise awareness in the industry on issues
communication
sharing and developing best practices

R&D is a key component for long-term effective and cost-effective management success
ILI Tools
Strength of Materials
Cracking Mechanisms
Data Mining

- CEPA, PRCI, INGAA
- share experience
- raise awareness in the industry on issues
- communication
- sharing and developing best practices
- R&D is a key component for long-term effective and cost-effective management success
- ILI Tools
- Strength of Materials
- Cracking Mechanisms
- Data Mining

- Research & Sharing Experiences

- TransCanada

## SCC is one of several integrity challenges
TransCanada has had success in managing SCC within a flexible goal-oriented regulatory environment
TransCanada uses system information to implement a risk-based approach to SCC management
Companies can work together sharing experiences and taking responsibility for technology & methodology developments
R&D provides effective solutions

- TransCanada has had success in managing SCC within a flexible goal-oriented regulatory environment
- TransCanada uses system information to implement a risk-based approach to SCC management
- Companies can work together sharing experiences and taking responsibility for technology & methodology developments
- R&D provides effective solutions

- Summary of Key Messages

- TransCanada