Good morning, ladies and gentlemen. I see that the time is just after 10:00 A.M. I will call our annual meeting to order. I'm Siim Vanaselja, and I'm the chair of TransCanada Corporation. On behalf of the board of directors and the management of the company, I take great pleasure in welcoming everyone here today. I'd also like to take the opportunity to extend a warm welcome to our shareholders who are joining us by webcast today. Now, before we begin, we need to attend to a couple of housekeeping matters. If you have not already done so, please kindly ensure that your cell phones are turned off for the duration of the meeting. We would ask that you refrain from taking photos, and please note that recording devices may not be used during the meeting.
Secondly, we're conscious of safety. If an alarm should sound during the meeting, please follow the instructions of the university's personnel who are present here today. As shareholders, if you have questions or comments, you are invited to approach one of the two stands, the microphones in the room today. However, I would ask you that you please hold your comments until the appropriate time in the meeting. I'd now like to introduce here on stage with me is, to my immediate left, Russ Girling, President and Chief Executive Officer, and to his left, Christine Johnston, Vice-President, Law and Corporate Secretary. I would also like to introduce the members of TransCanada's management group who are present here with us today. I'll ask each of them to stand and remain standing until I've introduced the entire group.
Stan Chapman, Executive Vice President and President, U.S. Natural Gas Pipelines. Kristine Delkus, Executive Vice President, Stakeholder Relations and General Counsel. Wendy Hanrahan, Executive Vice-President, Corporate Services. Karl Johannson, Executive Vice-President and President, Canada and Mexico Natural Gas Pipelines and Energy. Don Marchand, Executive Vice-President and Chief Financial Officer. Paul Miller, Executive Vice-President and President, Liquids Pipelines. François Poirier, Executive Vice-President, Strategy and Corporate Development. Dean Patry, Senior Vice President, Liquids Pipelines. Finally, Tracy Robinson, Senior Vice-President, Canadian Natural Gas Pipelines. Thank you. We have an exceptional management team, and this group will also be here to answer any of your questions following the meeting. For our agenda today, please remember that only registered common shareholders or duly appointed proxy holders who have registered for this meeting are entitled to participate.
As outlined in the management information circular dated February 20, 2018, the purpose of this meeting is for common shareholders to first, receive the 2017 consolidated financial statements and auditors' report, second, to elect the directors, to appoint the auditors, to consider and approve on an advisory basis TransCanada's approach to executive compensation, and to consider and approve a shareholder proposal regarding climate change disclosure. To help move the meeting along, we have asked certain proxy holders to make and second motions. After the formal business of the meeting has concluded, Russ Girling will provide an update of the company's activities and plans for the future, followed by a question and answer session. In accordance with bylaw number one of the company, I now appoint Steven Bandola and Simon Law, representatives of Computershare Trust Company of Canada, to act as our scrutineers for the meeting today.
The preliminary report by the scrutineers indicates that a quorum is present. I would ask them to submit their final report on attendance when ready. Christine Johnston will now report on the mailing of the notice calling this meeting and advise us about the process that our meeting will follow. Christine?
Thank you, Siim. The mailing of the notice of availability of proxy materials and the form of proxy was completed by March 21st, 2018, to common shareholders of record in accordance with the applicable law. An affidavit of mailing of the notice and form of proxy is hereby placed before the meeting. Where required or requested, the management information circular and the annual report were mailed to shareholders. These documents have also been made available on the company's website. We will be conducting a vote by ballot for each item of business today, with the exception of the appointment of auditors. For the process to be followed after the formal business of the meeting has concluded, Russ Girling, our CEO, will provide a presentation on the company.
After the presentation, shareholders and proxy holders in attendance will have the opportunity to ask questions either directly from the floor or through question cards. Those listening by webcast may also ask questions electronically.
Thank you, Chris. Notice of the meeting has been given and a quorum is present. I hereby declare that this meeting is duly called and constituted for the transaction of business. With regard to our first item of business, the annual report, which includes the consolidated financial statements and the related auditor's report, has been made available for review by shareholders in accordance with applicable law. Copies of the management information circular, the annual report, along with a summary of TransCanada Corporation's social responsibility report, are also available at the display booth outside the room. Representatives of KPMG will also be available to answer questions during the question and answer period following Russ's presentation. The next item of business is the election of directors, each of whom will hold office until the next annual general meeting of shareholders or until their successors are earlier elected or appointed.
I'll now introduce the current directors who are present today and that are standing for re-election. Please kindly stand as I call your name. Kevin Benson, Stéphan Crétier, Russ Girling, Barry Jackson, John Lowe, Paula Reynolds, Mary Pat Salomone, Indira Samarasekera, Mike Stewart, Thierry Vandal, and myself, Siim Vanaselja. Thank you. You will note that Derek Burney and Rick Waugh, who are both present today, are not standing for re-election this year. Both are retiring from the board effective today. Derek, will you please stand? Derek has provided many years of dedicated service to TransCanada and our shareholders, and he's been a significant contributor to our board and its committees. He was first appointed as a director in 2005, and during his 13-year tenure, he has been an integral part of developing the company's successful corporate strategy.
His counsel, his valuable business and government relations acumen, his guidance as chair of the governance committee from 2013 to 2017, and as a member of the audit committee, have been numerous and greatly appreciated. Derek, we will surely miss your unique insights and perspectives. Rick, will you please stand? Rick was first appointed a director in 2012, and during his six-year tenure, he has also made very important contributions to TransCanada's continued success, sharing his extensive and valuable business expertise and financial knowledge as a member of the board and its committees. Rick, the directors will miss your broad perspectives in all of our deliberations going forward. Thank you. On behalf of my fellow board members, management, and our shareholders, I thank you both for the tremendous contributions you each have made to the success of TransCanada. Thank you again.
The board has set the number of directors to be elected today at 11. The term of office of each of the current directors expires at the end of this meeting. The term of office proposed for each nominee is a term of one year, expiring at TransCanada's 2019 annual meeting or until a successor is earlier elected or appointed. Please, can I have a motion to nominate the directors?
Mr. Chairman, my name is Peter Ruznicki, I nominate the following individuals to serve as directors of the company, to hold office until the next annual meeting of shareholders, or until their successors are earlier elected or appointed: Kevin Benson, Stéphan Crétier, Russell Girling, Barry Jackson, John Lowe, Paula Reynolds, Mary Pat Salomone, Indira Samarasekera, Michael Stewart, Siim Vanaselja, and Thierry Vandal.
Thank you. We did not receive any additional nominations in accordance with our advance notice bylaws. I will now declare the nominations closed. As indicated previously, the vote on the election of directors will be made by ballot. Chris Johnston will give instructions for the use of the ballot. Chris?
Registered shareholders present in person or proxy holders representing shareholders were given a yellow ballot when they registered for the meeting today. Any registered shareholder or proxy holder who did not receive a yellow ballot, please raise your blue voting card so that the scrutineers can provide you with a ballot. Proxies held by management will be voted on the ballot as indicated in the proxies.
You will note that the 11 names have been pre-printed on the ballot. You are to vote for each candidate for election by placing an X in the "for" or the "withhold" box beside each name. You may only vote for or withhold for the director nominees listed. You do not need to provide a vote for all director nominees. The nominees for whom you have not voted will be voted for in accordance with the management's recommendation. If you vote for a person who has not been nominated, the ballot will be spoiled and not counted. After completion, please hold on to your ballot form as you'll also be asked to vote on the company's approach to executive compensation and the shareholder proposal on the same form.
We'll just wait a minute now for the ballots to be completed. Thank you. I'll now declare the balloting on this matter closed. We'll return to the agenda for the meeting. We will receive the report of the scrutineers on this ballot at the end of the meeting. The next item of business is the appointment of the auditors. May I have a motion in connection with the appointment of the auditors?
Mr. Chairman, my name is Sarah Vendel. I move the resolution appointing KPMG LLP Chartered Professional Accountants as auditors of the company until the next annual meeting of shareholders and authorizing the directors to fix their remuneration.
Thank you. Is there a seconder?
Mr. Chairman, my name is Stephanie Hudima. I second the motion.
Thank you. All those in favor, can I please ask you to raise your hands? Contrary? I see none. I declare the motion carried. Thank you. The next item of business is the approval on an advisory basis of an ordinary resolution approving TransCanada's approach to executive compensation. In order to ensure an appropriate level of director accountability to the shareholders of the company for the executive compensation decisions, the board of directors has determined that a shareholder advisory vote, commonly known as say on pay, would be beneficial. The board of directors is asking shareholders to consider, and if deemed advisable, to approve on an advisory basis a resolution accepting TransCanada's approach to executive compensation. The text of the resolution is specifically set out in the management information circular.
While the vote is on an advisory basis and not binding, the board will certainly take the results of the vote into account when considering future compensation policies and decisions. The company will also disclose the results of the shareholder vote as part of its report on voting results for this meeting. Can I please have a motion in connection with the resolution to accept the company's approach to executive compensation?
Mr. Chairman, my name is Kelly Matthews. I move the resolution to accept on an advisory basis the company's approach to executive compensation as described in the management information circular of TransCanada dated February 20th, 2018.
Thank you, Kelly. Is there a seconder?
Mr. Chairman, my name is Tiffany Proudfoot. I second the motion.
Thank you. As previously indicated, the advisory vote on the company's approach to executive compensation will be made by ballot, which can be found on the yellow ballot provided to registered shareholders and proxy holders. If you have previously signed and returned a proxy, your vote has already been recorded, and you do not need to vote by ballot. For those of you who have not yet voted, please indicate on the ballot by marking an X in the box, which indicates for or against as the case may be. We'll wait a minute while the ballots are being completed. I will now declare the balloting on this matter closed, and we'll return to the agenda of the meeting, and again, receive the report of the scrutineers on this ballot at the end of the meeting.
Please hold on to your ballot form as you will be asked to vote on the next item of business relating to the shareholder proposal on climate change disclosure. Let's turn to that now. The next item of business is the consideration of the shareholder proposal regarding ongoing reporting on the company's initiatives respecting climate change as more particularly described in the management information circular. I understand that Mr. François Meloche, a representative of Les Sœurs de la Congrégation de Notre-Dame and Procure Saint-François-d'Assise, the shareholders that submitted this proposal, is in attendance today. I would like to introduce Mr. Meloche to share his remarks and make a motion to approve the proposed resolution as set out in the management circular. Mr. Meloche?
Thank you very much, Mr. Chairman, and good morning, shareholders. My name is François Meloche, as you said. I represent the two shareholders that submitted the proposal. I just want to say a very brief word on the proposal itself just so that you understand. First of all, let me first commend the board for really taking a look at this proposal and recommending shareholders approve the proposal. I think this says a lot about how you value shareholder engagement. Again, I commend this. The proposal really basically asks for TransCanada to provide shareholders with some level of clarity as to how the company views its potential to continue to grow and create value as the world transitions to a lower carbon economy.
Although the pace of the transition to a lower carbon economy remains uncertain, many signs point to lower demand for oil and gas in the coming decades. The speed of the transition will depend on a number of factors, including technological breakthroughs, government policies, and changing consumer preferences. How these factors progress and interact over time will impact companies who produce and deliver oil and gas. Companies involved in the energy sector will require thoughtful planning as they navigate this unprecedented transition. It probably is a useful exercise to assess business models in various possible futures, including a low carbon world, such as a scenario analysis which can help identify sources of risk and inform long-term strategic planning.
As well, several oil and gas companies and utilities in the U.S. have conducted such a climate scenario analysis in the last two years. This has led some of them to increase their exposure to transition opportunities such as renewable energies and electrification of transport. All this is, I think, a good complement to the actual disclosure of TransCanada on climate risk, which is quite good. It is just another addition, and I think will complement well the full disclosure for TransCanada. I move that the proposed resolution set forth on page 113 of the management information circular of TransCanada Corporation in respect of its 2018 annual meeting of shareholders be approved. Thank you very much.
Thank you very much, Mr. Meloche. Is there a seconder for the motion?
Mr. Chairman, my name is Chu Tran Lam, and I second the motion.
Thank you. I'll now ask the corporate secretary to speak to TransCanada's position on the matter.
TransCanada's board and management recommend that shareholders vote for this motion. TransCanada understands that shareholders and other stakeholders want more information on how the company's assessing climate change and associated risks and opportunities. While we provide comprehensive disclosure on climate change-related information, we are committed to continually improving our disclosure and welcome this opportunity to engage on this increasingly important issue.
Thank you, Chris. You've heard the motion, which has been seconded now. We will follow the same ballot procedure as described by the Corporate Secretary earlier. Please use the yellow ballot provided to registered shareholders and proxy holders at the beginning of this meeting. If you have previously signed and returned a proxy, your vote has already been recorded, and you do not need to vote by ballot. For those shareholders who have not yet voted, please mark the ballot with an X in the box which indicates for or against. Please also sign and print your name on the lines provided. When you've completed and signed the ballot, please raise your hand so the scrutineers can collect and count the ballots, and we will wait while ballots are completed and collected now. Does anyone still need time to complete the ballots?
Hearing not, I'll declare the balloting on this matter closed and ask the scrutineers to advise the Corporate Secretary when they have completed the counting of the ballots and are ready to report. Please remain seated while we take a brief pause to wait for the report of the scrutineers on the ballots, and this should not take too long. Thank you. The Corporate Secretary has received the scrutineers' final report on attendance and the results of the votes taken by ballot. Chris, would you please provide us with the results?
The scrutineers' report on attendance at the meeting has now been received. It shows proxy being 64.7% of the issued shares of the company. I've also received the shareholder proposal on climate change disclosure. The scrutineers' report indicates that each item of business has received at least a majority of the votes cast in favor. The detailed results for each item of business will be filed on SEDAR by no later than Monday, April 30th, 2018.
Thank you, Chris. Until the next annual meeting or until their successors are earlier elected or appointed. I also declare that the advisory resolution with respect to the acceptance of TransCanada's approach to executive compensation has been passed. Finally, I declare that the resolution with respect to the shareholder proposal on climate change disclosure has also been passed. I now direct that the scrutineer's report on the ballots be annexed to the minutes of this meeting. With that, is there any further business to be brought forward to this meeting? If not, can I have a motion to conclude the meeting, please?
Mr. Chairman, I'm Juan Daley, I move the meeting to be concluded.
Thank you. Is there a seconder?
Mr. Chairman, my name is Michelle Gounder, I second the motion.
Contrary? Motion is carried. I'd like to first personally acknowledge the significant effort undertaken by TransCanada's. [inaudible] Our results. Thank you sincerely for your contributions to TransCanada. I'd also like to thank my fellow directors for their ongoing guidance and stewardship to sustain long-term growth and performance in an environmentally responsible and sustainable manner. I want to thank you, our shareholders, for your ongoing support, and we look forward to continuing to serve you in 2018. I'll now hand the floor over to Russ. Thank you.
Thank you very much, Siim, good morning, everyone, thank you all for joining us today, both those of you that have made your way here circuitously to Mount Royal College, and those that are joining us by webcast today. Throughout the year, our employees continue to perform the important job of delivering the energy that millions of people rely upon every day to heat their homes, cool their homes, cook their food, drive their kids to school. On top of that, we continue to make a positive difference in the communities in which we operate across North America, making them more sustainable and better places to live.
They say that a picture is worth 1,000 words, I wanted to get started with my presentation today with a short video that'll show you just a small portion of the many ways and great achievements that our employees have contributed to the communities in which they operate and give you a sense as to why they're so proud to work for your company. With that, let me queue up the video.
I think when you take a step back and really consider what it is that we do every day as TransCanada employees, whether it's moving 25% of the natural markets, it really does matter. What we do every day matters to the lives of Canadians, Americans.
Commitment I see everywhere in the project I visit, with the spirit of companionship that exists among our inspection team, the contractors. People really believing in what they're doing. People really caring for doing it well, for doing it safely.
I'm an indigenous employee. For me, it's really important to work with a company. We not only set the standards here, but we really exceed them, and that makes for.
990 km, never been done before. I've ran a lot of shorter pigs in my time, but yeah, it's something pretty special to be a part of.
Employees at TransCanada, I'd like to present to you a CAD 100,000 donation. I'd also like to mention that we will be matching all other donations made through our corporate website. Like virtually every other company in this city, we've had a number of colleagues that were directly affected by Hurricane Harvey.
Pollinators. TransCanada has become a part of that with their Pollinator Pathway Initiative, which is a three-year commitment to do enhancements, restorations on TransCanada properties as habitat. This is an invaluable partnership for us to have that kind of access to land.
I believe that we as individuals, as citizens, and we as employees need to take care of the communities in which we live, and in the case of the company, in which we.
Difference.
Today, we have TransCanada coming out and helping. We've got about 23 or so people from TransCanada and about a dozen or so of our Trout Unlimited Canada volunteers and a few staff people from Trout as well. We're all just working together, rescuing these fish and getting them back.
TransCanada really, they begin to go over and above, and they start to set the bar on how consultation could look. They give a small company feel, by the faces and the familiarity of who you deal with on a day-to-day basis.
TransCanada has always treated us very well. We have never had any problems at all. If there was ever an issue, and I can't even recall in the past 20 years that we've owned this property, that there has been any type of issue at all.
When TransCanada came, they showed us that they're like-minded. They're interested in moving oil, they're interested in moving oil in a safe way, and they're interested in the native cultures and supporting that.
The individuals that we work with have all been very polite and trustworthy, and all negotiated with us very openly. As far as my family is concerned, they're welcome in my house anytime.
As I said, those are just some of the things that make us all proud to be part of the TransCanada team every day. They remind us that what we're doing is the right things, and that we create lasting value in society, that we are realizing our vision of becoming North America's leading energy infrastructure company, and to meet the world's growing demand for reliable and affordable energy. Doing it safely is our top priority, which is why I chose this photo here for how proud he was of the groundbreaking inspection project that our Canadian Gas team undertook this last summer. They set a new record for the longest run of an in-line inspection tool in North America. That gets us excited at the company. It was a success on many levels.
For me, the enthusiasm they have for doing their best in delivering on our, excuse me, commitment to being leaders in both innovation and safety. In addition to safely operating our North America and deliver substantial long-term value for our shareholders, that's what I want to spend the next 20 minutes or so outlining for you. Helpful to start, always, with a snapshot of the company because it is ever-evolving. Today, we have an unparalleled footprint that spans North America with about 89 Going forward. As a result of the acquisition of the Columbia Pipeline Group in 2016, TransCanada now Pipe, it transports more than 25% of the continent's supply of clean-burning natural gas every day. Pipeline business. The Keystone Pipeline system now transports about 20% of the Western Canadian export In our Northern Courier projects .
In our power business, we currently own or have interest in about 11 generation facilities with the capacity of about 6,100 megawatts, that's enough power to supply more than 6 million homes in the communities that we serve. As I Excuse me. Summarizes some of our progress in our key strategic areas over the last Ensuring that our assets operate safely and efficiently, that they're generating maximum value for our shareholders. All three of our businesses performed exceptionally well this year. We completed the integration of the Columbia assets into our portfolio, we're on track to realize the CAD 250 million of synergies that we committed to. All of our pipeline systems are fully contracted and operating at their maximum throughput. In our liquids business, our oil pipelines produced very strong results again in 2017, surpassing CAD 1.3 billion of EBITDA.
The value of our service offerings were evident again in late 2017 as we secured incremental contracts for the Keystone and Marketlink pipelines. The Keystone system is now being fully utilized and is now underpinned by long-term take-or-pay contracts for about 550,000 Also saw exceptionally strong results from our assets. Again, which are all underpinned by long Particular, our largest power asset, the Bruce Nuclear facility in Ontario, performed exceptionally well thanks to greater reliability, fewer outage days, and greater cost control. Turning to our growth program. CAD 1 billion of commercially supported projects. Through 2017, we placed about CAD 5 billion of those assets The completion of significant expansions of both the Columbia and the NGTL systems. At the same time, we replenished our near-term growth program by adding more than CAD 3 billion of new opportunities, fully contracted opportunities to our Canadian and U.S. natural gas pipeline portfolio.
Finally, on this slide, we successfully funded CAD 9.2 billion of Terms. It included about CAD 6 billion of long-term debt and hybrid securities in Canada and the United States. We completed the sale of our U.S. Northeast power assets, as I mentioned, we used those proceeds to pay down the bridge facilities used to purchase Columbia. In addition, we realized about CAD 1.1 billion through the recovery of our development costs on the Prince Rupert Gas Transmission project, we sold our Ontario solar assets. Our overall financial positions remains extremely strong, we remain well-positioned to fund our capital program going forward. The strong performance in our base business, combined with the first full year of contributions from Columbia, resulted in 2016, up to CAD 3.09 per share, backed by cash flow. Comparable EBITDA reached CAD 7.3 billion last year, an increase of 11% over 2016.
Comparable funds from operations surpassed CAD 5.5 billion for the first time in our history. Based on this quarterly dividend in February of CAD 0.69 per common share, which equates to an equivalent of CAD 2.76 per share on an annual basis. That represents a 10.4% increase over last. We have maintained strong coverage ratios, with our dividend representing about a payout ratio of approximately 80% of comparable earnings and 40% of cash flow generated from operations. Our strong financial performance and growing dividend has in turn contributed to a strong track record of delivering superior returns for our shareholders. When you combine the increase in our share price with the dividend growth since the beginning of 2000, our shareholders have realized a 13% annual average return on their investment since that time.
Our strong financial performance continued into the first quarter of 2018, where CAD 0.98 per share compared to CAD 0.81 per share last year, which is an increase of approximately CAD 2.1 billion. Comparable funds from operations increased by CAD 111 million to CAD 1.6 billion. As we look forward, as you've heard me say many times. For decades to come. This chart is a forecast from the International Energy Agency that depicts the expected growth in worldwide demand for all sources of energy between 2016 and 2040. The government around the world have already put in place, but also the likely effects of announced but not implemented future global energy needs, and it is considered one of the world's most comprehensive. Includes what we believe is the best current knowledge on geopolitical stability, population growth, technology, and environmental regulation.
As you can see, renewables such as solar and wind power are expected to grow significantly over this period of time. However, they still will be a relatively small piece of the overall energy mix as we move towards 2040. As you can also see, even with the enacted and announced, the IEA anticipates that demand for oil, natural gas, and even coal will continue to grow as they continue to be the dominant sources of energy for decades here to come. This growth in demand, combined with the need to replace and upgrade energy infrastructure as society does transition to a lower. We feel we are well-positioned to capture the opportunities that exist right here in North America. With that in mind, I'd just like to walk through each of our businesses and let you know what our growth plans look like.
Our extensive network is very well-positioned to meet the growing demand for natural gas. American natural gas demand is expected to grow by about 40 billion cubic feet a day between now and 2040. Much of that demand is being driven by a shift towards more natural gas for electricity generation and a rapid shift to LNG exports out of the continent. When you look at the map on the left, you can see that our natural gas footprint enables us to connect the growing supplies from the Western Canadian Sedimentary Basin and the Appalachian Basin, which are the continent's two largest and most prolific lowest-cost regions to premium markets in Western Canada, the Pacific Northwest, California, as well as Eastern Canada and Eastern U.S. onto the Gulf Coast, and even into Mexico. Connectivity, which I would say is unmatched by any system in North America.
As I mentioned earlier, our existing pipelines are operating at capacity and four commercially secured expansions underway in Canada, the U.S., and Mexico, all of which are expected to be completed over the next four years. That includes about CAD 6 billion on the Columbia system to move growing supplies from the Marcellus, more than CAD 7 billion of expansion on the energy markets, and three projects in Mexico, all of which are expected to enter service later this year and into early 2019. We continue to have requests for additional capacity along our gas footprint Coastal GasLink project, which will serve the proposed LNG Canada export facility on the West Coast at Kitimat, B.C. Turning to the liquids business, the need continues for expanded pipeline capacity to move growing crude oil supplies in both Canada and the U.S.
Looking at the chart on the right here, North America's oil supply is expected to increase from about 14 million barrels a day right now to more than 16 million barrels a day by 2030. We continue to be a firm believer that pipelines are by far the safest and most environmentally sound method of transporting oil to refineries, where it is turned into fuel and other products that everybody relies upon every day.
We continue to progress our strategy of connecting production in Northern Alberta to premium refining markets in the Gulf Coast and the middle 1.9 billion barrels, that's billion barrels of oil since entering service in 2010, and it continues to deliver strong and steady returns, as I said earlier, with more than 90% of its cash flow and EBITDA growth, most notably the Keystone XL system that will provide direct access for Canadian heavy oil to the U.S. Gulf Coast. We're pleased to see this year that the Keystone XL system took an important step forward, starting with the long-awaited receipt of a presidential permit in March of this year. That was followed by the Nebraska Public Service Commission approving a viable route through the state in November. We are currently working collaboratively with landowners in the state to acquire the necessary easements for that approved route.
We continue to work through the process to obtain the additional permits that we need in order to begin construction sometime in 2019. In addition to Keystone XL, we're looking to increase system utilization by connecting more supply and more markets to the system. As you can see on this chart, the smaller brown arrows indicate growing shale production in the Permian Basin, which can reach the Gulf Coast via the southern Marketlink portion of the Keystone Pipeline with our on-route at Cushing, Oklahoma. In the Midwest, the leg of Keystone that terminates at Patoka, Illinois, provides a significant source of supply that can easily reach the Chicago market via regional transportation systems.
Further opportunities in the Athabasca region are CAD 200 million White Spruce project is well under. We have the potential expansion of the Grand Rapids project, as well as a project to link Alberta's Industrial Heartland to begin construction of pending market support. Turning to our power business, we have steadily grown to become one of Canada's largest private sector electric generators. In Alberta, we are one of the largest wholesalers of industrial and commercial power based on our portfolio of high-quality natural gas-fired cogeneration facilities. In Ontario, we have played a key role in the province's elimination of coal-fired power through our 48% interest in Bruce Power and our ongoing development of operation of high-efficiency natural gas-fired power facilities. We continue to pursue opportunities in this business as North America transitions to a less carbon-intensive resource base.
In terms of our current growth plans, we expect to add another 900 megawatts to our portfolio with the completion of the refurbishment at Bruce Power that will extend the life of the world's largest nuclear facility past 2060. Bruce is a critical facility in Ontario that supplies about one-third of the load to Ontario consumers. Our share of that program amounts to about CAD 6.2 billion between now and. Looking forward, when you add up all of those projects that we have underway and that are on track for completion by 2021, it amounts to about CAD 21 billion of near-term projects that we are confident will deliver predictable cash flow for our shareholders. As you can see on this chart, these projects span all of our business lines and all three countries in which we operate.
They are relatively small to medium-sized projects, which follow what we would call a normal course permitting and construction process, and all are either rate- regulated underpinned by long-term ship-or-pay contracts. As a result, as I've said many times, we have a high degree of visibility to the earnings and cash flow growth that will be generated as they enter service. This slide highlights the significant growth in EBITDA that is expected to come as we complete that near-term program over the next three to four years. As you can see on the chart, comparable EBITDA is expected to grow from about CAD 6 billion in 2015 to about CAD 9.5 billion in 2020. That equates to a compound average growth rate of about 10%.
Just as important as the magnitude of that growth is the quality of the growth, and as we reach that time, over 95% of our EBITDA will of our base business and our confidence in that CAD 21 billion near-term growth program. At the end of the decade, we expect to continue to grow the dividend at the average rate that is at the upper end in the dividend in 2021. To be clear, that growth in dividends is distributable cash flow coverage ratios. When it comes to funding our near-term capital program, as we have said many times before, we will continue to reinvest our predictable and growing internally generated cash flow and access a combination of other source of capital available to us in a manner that is consistent with our targeted credit metrics.
Those include senior debt, hybrid securities and preferred shares, asset sales, and common share issuance under both our dividend reinvestment program and our at-the-market equity program. At this time, we see no discrete equity needs for our CAD 21 billion program that is currently underway. Looking forward, in addition to the CAD 21 billion near-term program we have underway, our suite of longer-term projects provides us with significant options for future growth. Keystone XL, Coastal GasLink, and for us. Just like our near-term projects, all of those projects are underpinned by long-term. Some of those assets, if they were to enter service. Bringing any one of them into fruition in the coming years could extend our EBITDA and dividend growth outlook through 2020 and well beyond.
In addition to those projects, we continue to replenish and add to our portfolio with new expansions and incremental organic growth opportunities, as evidenced by the additional CAD 2.5 billion of near-term projects that we secured in the last few months on our Canadian natural gas pipeline systems. There's good reason to be proud of the achievements that we have made over the last year. As I've said from the beginning, it's not just what we do that's very important, it's just as important is how we do it. The combined success of our company depends on our ability to operate responsibly, and following through on our commitments that we make to our neighbors and to our stakeholders. We have very strong Hundreds of indigenous groups and the myriad of community leaders that we work with across North America every day.
Without exception, their expectation is that the energy that we deliver is delivered safely and with minimal impact on the. That all of our employees and contractors make it home safely from work every day is an imperative in our business. Our track record for safe operations continues to be the best among our industry, but we're not perfect, but we are striving to be. We believe that all safety-related incidents are preventable, and we continue to believe that achieving zero incidence rates is possible. Parts of our company have achieved zero incidence rates for decades, and we are focused on trying to find ways to achieve that level of excellence across our whole organization. Our engineers, environmental planners, public safety experts, and emergency response personnel are all leaders in their field.
As a company, we are truly at the forefront when it comes to building projects in sensitive environments, adapting new technology, and using the best practices to improve safety, efficiency, and reliability of our facilities. You can learn more about both our commitment and our performance in how we do our business in our new corporate responsibility report that was released today and is now available on our website. In closing, I'd offer a few comments. 18 years ago, we set out to become one of North America's leading energy infrastructure companies, and I think we are well on our way to realizing that vision. Our diverse portfolio of high-quality, long-life assets generated record comparable results in 2017 and into the first quarter of 2018. Looking forward, we have five strong platforms for future growth.
Today, we are advancing a CAD 21 billion suite of high-quality near-term projects that are expected to generate significant growth in earnings and cash flow. That is expected to support annual dividend growth at the upper end of 8%-10% through 2020, an additional 8%-10% in 2021. Success in advancing any of our large-scale, medium to longer term projects or any other opportunities in the coming years could extend our dividend growth outlook even further. Overall, our financial position remains strong, and we are well-positioned to fund our near-term program through resilient and growing internally generated cash flow, strong access to capital markets on compelling terms, and potential portfolio management activities.
Finally, and again, most importantly, we continue to be committed to the long-term sustainability of our company and the communities in which we operate by always acting in accordance with our core values of safety, integrity, responsibility, and collaboration. I'll end by saying that the future of your company remains very bright. As you know, this kind of success, as Siim pointed out, can only be achieved through the efforts and expertise of our people. I'd like to also extend my personal and sincere thanks to our more than 7,500 employees and contractors for their commitment and dedication to living our values every day and being great ambassadors of TransCanada. The last year has been an exciting but challenging one for our team across North America.
From hurricanes and flooding in the U.S. Gulf Coast, to the devastating earthquake, our team stepped up and helped their neighbors, but they also went the extra mile in ensuring that the assets that we operate, continue to operate safely and deliver the energy that those communities needed to get back on their feet. To our executive leadership and guidance that you bring to the table every day, I'd also like to pass on my thanks to the board of directors for their patience. It does take a lot of patience in this business, wisdom, and guidance as we navigate the constantly shifting environment in which we operate. You've kept us pointed in the right direction, and we continue to make great progress.
Our board of directors continues to evolve, as you saw today, as Siim Vanaselja has seamlessly transitioned to the chair position, and over the last year, two board members, both Derek Burney and Rick Waugh, as Siim mentioned, are retiring from the board. I would also like to pass on my sincere thanks to Derek for his leadership and strategic insight that has been invaluable to navigating the turbulent waters that we have experienced since you joined the company in 2005, and also to Rick, for serving on the board for the last six years, bringing a wealth of experience in management, finance, accounting, governance. All of those things have served us exceptionally well, and you'll both be sorely missed. I'd also like to welcome our newest member to the board of directors, Thierry Vandal, who was appointed during this year.
Thierry has more than 30 years' experience in the North American power and utility industry. His extensive experience in building and operating large-scale energy infrastructure, along with his leadership skills and business acumen, will make him a valuable member of our board as well. To our shareholders, to close up, thank you very much for taking the time to join us here today and by webcast. We appreciate your interest in our company, and we look forward to answering your questions here during the question and answering period. What I want to do now is just turn it back to Christine. She'll lay out the terms of engagement for the Q&A, and then I'll be here to answer any of your questions. Again, thank you all very much for joining us today.
We now invite questions from shareholders and proxy holders. Should a shareholder or proxy holder wish to address the meeting and ask a question, please approach one of the standing floor microphones. Before presenting your question, we'd ask that you kindly identify yourself and confirm that you're a shareholder or proxy holder of the company. Please also kindly limit yourself to one question with a duration of not more than two minutes. If you have additional questions, please go to the back of the line and await your turn at the microphone. Those listening by webcast may also ask questions. If you would prefer not to address the meeting but have written your question down on a question card provided, please raise your hand, and we'll collect them from you.
Please print your name and contact details, such as your email, on the back of the card, and in the event we don't get to your question today, we will provide you with a written response at a later time.
While we're waiting, I do have one question that came either from the webcast or the floor is the status of Keystone and what are the hurdles to move that project forward? As I said, the key hurdles for us were getting the Presidential Permit, which we were very pleased to get in March of last year, and then a decision from the Nebraska Public Service Commission on a route through Nebraska. Those were the two additional easements and right-of-way, so we're busily working on those things. That permit has been challenged in Nebraska, so we're working through in the Nebraska court process to solidify that permit. As well, the Presidential Permit has been challenged, so we have to work through the court process there.
Because of the new route in Nebraska, I guess the third issue would be there does require some more environmental work that needs to be done and the issuance of a couple of federal permits that require that work to be completed. We look at all of those things as potentially dovetailing by year-end, which will give us greater clarity on what the next steps to move that project forward in. Those are the next steps in our projects. Microphone.
Encouraged a shareholder to come to this AGM, Dr. Spence. I know that you'll greet him in a friendly spirit. As a loyal shareholder, it would make me happy if the board could address a question troubling me. The first issue, which was made known to me by Ed McCullough, a shareholder as well, where he discovered a newspaper article in the Financial Times, a British newspaper. It indicated that Boston, U.S., bought two shipments of LNG in February of 2018, which came from Russia, and the sale was handled by Petronas, the same company that got pushed back from the B.C. government. My question is, couldn't the Columbia Pipeline Network have supplied Boston with North American gas? I have a second issue that's somewhat related to this question.
The U.S. House of Representatives Science Committee published a report that the Russian government funded entities that are channeling resources and otherwise supporting American anti-pipeline zealots. Are the Russians stoking anti-pipeline discord in Canada?
I'll start with the first one. I agree with you. There was importation of LNG, and I think this highlights the issue that we've had with building infrastructure. There's many projects that have been proposed, ours and others, to get natural gas from places not very far away, Pennsylvania and Ohio, into the Northeast United States. All of those have been held up, in my view, for the most part, by anti-fossil fuel activists. We can't get the gas there is the problem. It manifests itself, if you can't get the gas there on a cold winter day, people don't stop heating their homes, and you got to get the gas there somehow. That was the most efficient way, if you can believe it, to import LNG onto the East Coast of the United States when sitting only a few hundred miles.
That is, I guess from my perspective, the true tragedy of this continued and relentless pushback on building what I think is much needed infrastructure. This problem of misinformation and these activists getting their way in front of both regulators and courts and stalling and delaying these projects. We've seen it in many of our projects, and I know many of my peers have faced the same thing. In particular, the Northeast, it's difficult. On your second question of where the funding comes from for these groups that are doing these kinds of things, I have no ability to tell you where that money comes from.
We have some feeling here in Canada that a lot of it comes from U.S.-based activist organizations that are funding land groups or others that, again, are using those funds to basically choke off the supply of natural gas in an attempt to try to keep these things or crude oil, to try to keep them in the ground. I really can't comment on who those parties-
House of Commons represented Science Committee not credible?
I just have no information. I don't have any information as to how they would verify something like that. It's not something that I've followed closely.
Okay. Thank you very much for your fine performance in 2017, thanks for answering my questions.
Thanks for your question.
Dave Core. I'm a proxy holder and of Energy and Pipeline Landowner Associations, I want to say your comments to the last questioner, we're here to help. We've tried to help over the last 10 years in getting pipelines built and getting satisfaction on the ground by landowners. I just have just a very short few notes here. The major federally regulated pipelines that have been built in Canada the last 10 years, and the one being successfully built today in Canada, CAPLA was involved in that, in getting landowners to support it, and in supporting the projects going forward, and making sure that the regulatory process went well. In 2008, TransCanada PipeLines and CAPLA concluded two precedent-setting agreements, both models of peaceful and successful cooperation between landowners and industry.
In light of the conflict and controversy around Kinder Morgan's Trans Mountain expansion, TCPL's own current effort to push ahead with Keystone XL in the U.S., do you believe, as we at CAPLA do, that there is an opportunity this time to create value for shareholders by doing things in a more Canadian way? Do you believe, Mr. Girling, that TransCanada's success on Keystone and XL in Canada deserves to be better known south of the border line this time? I look forward to your thoughts and for the opportunity to discuss this with you further as we had planned.
Thanks for the question, Dave, and thanks again for joining us today. Obviously, we've had our successes and things that haven't worked that well for us, what we try to do is learn from those things that didn't work out very well. I think that we have taken those lessons learned in our approach to landowner acquisition in the U.S. I see that it's actually bearing some fruit, is it listening close to the ground and getting closer and understanding what people really need and what they want. We're in early days in Nebraska. We've just sent out our first offers. My feeling is that the approach we've taken is different. I look very much forward to working with you and the other organizations. At the end of the day, as we've always said and we've talked about, we get married to these folks for decades.
That it's not about a short-term relationship, it's about a long-term relationship. We need to understand what their needs are and find a more collaborative way of doing that. At the end of the day, I agree with you as well, is they can be our strongest. People are looking for right away our center line to come on their property and not on somebody else's because it's beneficial to them. They see the value in it. That's what we're looking for, is that long-term collaborative, win-win relationship with our landowners. I look forward to continued conversation.
My only suggestion is that it's done right, we actively think that Landowners are probably your best effort to counter the anti-pipeline movement that's out there. My suggestion is that by working together, we can create a swell of movement from landowners to counter the anti-pipeline movement. I just wanted to add that. Thank you.
I agree with you.
Yeah. My name is Tim Thorpe. I'm a shareholder. Great meeting. Been a long time shareholder and never come to any of the meetings. First one for me. Very informative. Great. It was excellent. My question, I guess I hesitate a little bit to even ask the question, because there might be some sore points, but is there any chance of Energy East being resurrected in the next five years?
My point here is that, Energy East is two markets in Eastern Canada that consume oil from other places around the world. It was an opportunity to move it in a pipeline rather than by rail and by ship. I can't think of a better opportunity for this nation than Energy East. Obviously, I had some passion around it. Watching what's happening right now in the West Coast, it's hard to imagine. Again, it's hard to see how the stars and moon could align such that that could be a viable opportunity for us in the near term.
All right. Thank you.
It doesn't look like anybody else. Any other questions before I close? If not, again, I'd like to say thank you for attending today. You're all invited to stay. We have some coffee in the foyer. Chat with our leadership team here, our board of directors. They'll all be available as well. Again, I encourage you to ask them questions. Thank you for your support of our company and future. Thanks again.