TransCanada's Halton Hills Generating Station Bid Gets Green Light

CALGARY, Alberta - November 16, 2006 – TransCanada Corporation (TSX, NYSE: TRP) (TransCanada) today announced that it has been awarded a 20-year Clean Energy Supply contract by the Ontario Power Authority (OPA) to build, own and operate a 683 megawatt (MW) natural gas-fired power plant near the Town of Halton Hills, Ontario. TransCanada expects to invest approximately $670 million in the Halton Hills Generating Station (HHGS) which is anticipated to be in service in the second quarter of 2010.

“We’re delighted to begin work on another major power project in Ontario,” said Hal Kvisle, TransCanada’s chief executive officer. “HHGS is a strong fit with TransCanada’s power strategy, and it demonstrates our continued commitment to helping address Ontario’s power needs. Ontario is one of the largest power markets in North America and as a long-time participant in the Ontario energy market through both our pipelines and energy businesses, we know the market well.”

TransCanada’s bid for HHGS was submitted in response to the OPA’s request for new generation in the Greater Toronto Area West (OPA request for proposals GTA-West-Trafalgar-RFP-2006). The combined-cycle facility will use state-of-the-art low emissions technology and will be built to meet high environmental standards. HHGS will be located in the 401 industrial corridor in the Town of Halton Hills and will provide reliable, clean power to help meet the specific needs of the area.

“The Halton Hills project represents a new source of much-needed power to the Western Greater Toronto Area and will bring greater stability to local electricity supply to the benefit of residential, business and industrial consumers,” said Mr. Kvisle.

HHGS is expected to create up to 300 construction jobs. In addition, a number of local businesses will be needed to provide services to the project during the construction and operating phases. Approximately 24 full-time positions will be required to operate the facility. During the life of the facility, routine operations and maintenance will require ongoing support from suppliers and specialty contractors from across the region.

“With the addition of the Halton Hills Generating Station, TransCanada’s portfolio of power assets grows to approximately 7,700 megawatts,” said Mr. Kvisle. “The Halton Hills facility is consistent with our strategy of growing our power business both through the development of low risk, greenfield power projects supported by long-term contracts, as well as the acquisition of low-cost, competitive power facilities.”

Ontario is one of TransCanada’s focus areas. In September, Portlands Energy Centre L.P. announced that it had signed a 20-year Accelerated Clean Energy Supply (ACES) contract with the OPA for Portlands Energy Centre (PEC), a 550 MW high-efficiency, combined-cycle natural gas generation plant to be constructed in downtown Toronto. PEC is a limited partnership of Ontario Power Generation and TransCanada. TransCanada is also an owner of Bruce Power, one of North America’s largest independent power producers. Bruce Power is currently implementing a $4.25 billion restart and refurbishment program that will ultimately deliver another 1,500 MW to the Ontario power grid beginning in 2010.

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 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 7,700 megawatts of power generation in Canada and the United States, including the Halton Hills Generating Station announced today. 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.

FORWARD LOOKING INFORMATION

Certain information in this news release is forward-looking and is subject to important risks and uncertainties. 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, competitive factors in the pipeline and power industry sectors, and the current economic conditions in North America. For additional information on these and other factors, see the reports filed by TransCanada with Canadian securities regulators and with the United States Securities and Exchange Commission. TransCanada disclaims any intention or obligation to update or revise any forwa rd-looking statements, whether as a result of new information, future events or otherwise.

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