TransCanada Declares Quarterly Dividends

CALGARY, Alberta – October 31, 2006 - (TSX: TRP) (NYSE: TRP) – As announced today in TransCanada's Third 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 December 31, 2006. It is payable on January 31, 2007 to shareholders of record at the close of business on December 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 33 was declared on the outstanding Cumulative Redeemable First Preferred Shares Series U in the amount of $0.70 per share for the period ending January 30, 2007. The dividend is payable on January 30, 2007, to shareholders of record at the close of business on December 29, 2006.

• Dividend Number 32 was declared on the outstanding Cumulative Redeemable First Preferred Shares Series Y in the amount of $0.70 per share for the period ending February 1, 2007. The dividend is payable on February 1, 2007 to shareholders of record at the close of business on December 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 7,000 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.

- 30 -

For further information, please contact:

Media Inquiries:

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

Investor & Analyst Inquiries:

David Moneta/Myles Dougan
(403) 920-7911 or Toll Free (800) 361-6522