TransCanada Declares Quarterly Dividends

Board approves common share dividend increase of 6 per cent and implements discount for Dividend Reinvestment Plan members

CALGARY, Alberta – January 30, 2007 - (TSX: TRP) (NYSE: TRP) – As announced today in TransCanada's Fourth Quarter 2006 news release, the Board of Directors of TransCanada Corporation declared a quarterly dividend of $0.34 per common share for the quarter ending March 31, 2007, a 6 per cent increase over the $0.32 paid in each of the previous four quarters. The dividend is payable on April 30, 2007 to shareholders of record at the close of business on March 30, 2007.

Directors also approved the issuance of common shares from treasury at a two per cent discount under TransCanada’s Dividend Reinvestment Plan (DRP), commencing with the dividend payable on April 30, 2007. Previously, shares purchased through the DRP have been purchased by TransCanada on the open market and provided to DRP participants at cost. TransCanada reserves the right to alter the discount or return to purchasing shares on the open market at any time.

Also announced today, the Board of Directors of TransCanada PipeLines Limited declared the following regular dividends on TransCanada PipeLines Limited’s preferred shares:

• Dividend Number 34 was declared on the outstanding Cumulative Redeemable First Preferred Shares Series U in the amount of $0.70 per share for the period ending April 30, 2007. The dividend is payable on April 30, 2007, to shareholders of record at the close of business on March 30, 2007.

• Dividend Number 33 was declared on the outstanding Cumulative Redeemable First Preferred Shares Series Y in the amount of $0.70 per share for the period ending May 1, 2007. The dividend is payable on May 1, 2007 to shareholders of record at the close of business on March 30, 2007.

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 December 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.

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FOR FURTHER INFORMATION, PLEASE CONTACT:

Media Inquiries:

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

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David Moneta/Myles Dougan
(403) 920-7911