TransCanada Closes $1.5 Billion Subscription Receipts Offering

Proceeds to Finance ANR Acquisition

CALGARY, Alberta – February 14, 2007 – TransCanada Corporation (TSX, NYSE: TRP) (TransCanada) today announced it has completed its public offering of Subscription Receipts. The offering was announced on February 6, 2007 when TransCanada entered into an agreement with a syndicate of underwriters, led by BMO Capital Markets, RBC Capital Markets, and TD Securities Inc. under which they agreed to purchase from TransCanada and sell to the public 39,470,000 Subscription Receipts.

The purchase price of $38.00 per Subscription Receipt resulted in gross proceeds to TransCanada of approximately $1.5 billion. The proceeds will be used by TransCanada towards financing the acquisition of American Natural Resources Company and ANR Storage Company (collectively, ANR). On December 22, 2006, TransCanada announced the acquisition of ANR together with the acquisition of an additional interest in Great Lakes Gas Transmission Limited Partnership for a total of approximately US$3.4 billion, including US$457 million of assumed debt.

The proceeds of the offering have been deposited in escrow pending the closing of the ANR acquisition. On closing of the ANR acquisition, the Subscription Receipts will automatically be exchanged on a one-to-one basis for TransCanada common shares without any further action on the part of the holder and without payment of additional consideration, and the proceeds of the Subscription Receipts offering will be released to TransCanada.

The acquisition is expected to close by the end of the first quarter 2007, pending several conditions including customary transaction closing conditions. The necessary regulatory approvals have been received.

TransCanada has granted the underwriters an option to purchase an additional 5,920,500 Subscription Receipts at a price of $38.00 per Subscription Receipt at any time up to 30 days after closing of the offering. The Subscription Receipts have been listed on the Toronto Stock Exchange and will trade under the symbol TRP.R.

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 the majority of Western Canada’s natural gas production to key Canadian and U.S. markets. On closing of the acquisition of ANR, 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.


This news release may contain certain information that is forward-looking and is subject to important risks and uncertainties. The words "anticipate", "expect", "may", "should", "estimate", "project", "outlook", "forecast" or other similar words are used to identify such forward looking information. All forward-looking statements are based on TransCanada’s beliefs and assumptions based on information available at the time such statements were made. 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, changes in environmental and other laws and regulations, competitive factors in the pipeline and energy industry sectors, construction and completion of capital projects, access to capital markets, currency exchange rates, technological developments and the current economic conditions in North America. By its nature, such forward looking information is subject to various risks and uncertainties which could cause TransCanada's actual results and experience to differ materially from the anticipated results or other expectations expressed. For additional information on these and other factors, see the reports filed by TransCanada with Canadian securities regulators and with the United States Securities Exchange Commission. Readers are cautioned not to place undue reliance on this forward looking information, which is given as of the date it is expressed in this news release or otherwise, and TransCanada undertakes no obligation to update publicly or revise any forward looking information, whether as a result of new information, future events or otherwise, except as required by law.

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