TransCanada files Shelf Prospectus

CALGARY, Alberta - January 23, 2007 – TransCanada Corporation (TSX, NYSE: TRP) (TransCanada) today announced it has filed a preliminary short form shelf prospectus with securities regulatory authorities in Canada and with the Securities and Exchange Commission in the United States under the Multijurisdictional Disclosure System. When final, the short form shelf prospectus will allow for the offering of up to $3.0 billion of common shares, first preferred shares, second preferred shares and/or subscription receipts in Canada and the United States during the 25 month period that the short form shelf prospectus remains valid.

At the time any securities covered by the short form shelf prospectus are offered for sale, a prospectus supplement containing specific information regarding the terms of the securities being offered would be provided. Unless otherwise specified in the prospectus supplement, TransCanada expects to use net proceeds from the sale of securities under the prospectus to repay indebtedness and/or to, directly or indirectly, finance future growth opportunities.

This news release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such province or other jurisdiction.

TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure including natural gas pipelines and storage facilities, and power generation. For 50 years, TransCanada has transported natural gas production from Western Canada to key Canadian and U.S. markets. On closing of the acquisition of the ANR Pipeline Company and ANR Storage Company announced Dec. 22, 2006, TransCanada’s network of wholly owned pipelines will extend more than 59,000 kilometres (36,500 miles), tapping into virtually all major gas supply basins in North America. TransCanada will also become one of the continent’s largest providers of gas storage and related services with approximately 360 billion cubic feet of storage capacity. A growing independent power producer, TransCanada owns, or has interests in, approximately 7,700 megawatts of power generation in Canada and the United States. TransCanada’s common shares trade on the Toronto and New York stock exchanges under the symbol TRP.

Note: all financial figures are in Canadian dollars unless noted otherwise.

FORWARD-LOOKING 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, the availability and price of energy commodities, regulatory decisions, competitive factors in the pipeline and power industry sectors, and the current 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 Securities and Exchange Commission. TransCanada disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise except as required by law.

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For further information, please contact:

Media Inquiries:

TransCanada
Jennifer Varey
(403) 920-7859 or Toll Free (800) 608-7859

Investor & Analyst Inquiries:

David Moneta/Myles Dougan
(403) 920-7911