TransCanada Declares Quarterly Dividends

Common share dividend increases by five per cent  

CALGARY, Alberta – January 31, 2006 - (TSX: TRP) (NYSE: TRP) – As announced today in TransCanada's Fourth Quarter 2005 news release, the Board of Directors of TransCanada Corporation declared a quarterly dividend of $0.32 per common share for the quarter ending March 31, 2006, a five per cent increase over the $0.305 paid in each of the previous four quarters. The dividend is payable on April 28, 2006 to shareholders of reco rd at the close of business on March 31, 2006.

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 30 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, 2006. The dividend is payable on May 1, 2006, to shareholders of record at the close of business on March 31, 2006.
  • Dividend Number 29 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, 2006. The dividend is payable on May 1, 2006 to shareholders of record at the close of business on March 31, 2006.

TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure. TransCanada’s network of approximately 41,000 kilometres (25,600 miles) of pipeline transports the majority of Western Canada’s natural gas production to key Canadian and U.S. markets. A growing independent power producer, TransCanada owns, or has interests in, approximately 6,700 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

Investor & Analyst Inquiries:

David Moneta/Myles Dougan
(403) 920-7911