TransCanada Declares Quarterly Dividends

CALGARY, Alberta – July 27, 2006 - (TSX: TRP) (NYSE: TRP) – As announced today in TransCanada's Second Quarter 2006 Report to Shareholders, the Board of Directors of TransCanada Corporation declared a quarterly dividend of $0.32 per share on the company’s outstanding common shares for the quarter ending September 30, 2006. It is payable on October 31, 2006 to shareholders of record at the close of business on September 29, 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 32 was declared on the outstanding Cumulative Redeemable First Preferred Shares Series U in the amount of $0.70 per share for the period ending October 30, 2006. The dividend is payable on October 30, 2006, to shareholders of record at the close of business on September 29, 2006.

• Dividend Number 31 was declared on the outstanding Cumulative Redeemable First Preferred Shares Series Y in the amount of $0.70 per share for the period ending November 1, 2006. The dividend is payable on November 1, 2006 to shareholders of record at the close of business on September 29, 2006.

TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure. TransCanada’s network of more than 41,000 kilometres (25,600 miles) of wholly-owned 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