TransCanada Declares Quarterly Dividends

Board of Directors Increases Quarterly Dividend by 5.2 Per Cent

CALGARY, Alberta – February 1, 2005 - (TSX: TRP) (NYSE: TRP) – As announced today in TransCanada's Fourth Quarter 2004 news release, the Board of Directors of TransCanada Corporation declared a quarterly dividend of $0.305 per common share for the quarter ending March 31, 2005, a 5.2 per cent increase over the $0.29 paid in each of the previous four quarters. The dividend is payable on April 29, 2005 to shareholders of record at the close of business on March 31, 2005.

Also today, the Board of Directors of TransCanada PipeLines Limited declared the following regular dividends on TransCanada PipeLines Limited’s preferred shares:

  • Dividend Number 26 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, 2005. The dividend is payable on May 2, 2005 to shareholders of record at the close of business on March 31, 2005.
  • Dividend Number 25 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, 2005. The dividend is payable on May 2, 2005 to shareholders of record at the close of business on March 31, 2005.

TransCanada is a leading North American energy company. TransCanada is focused on natural gas transmission and power services with employees who are expert in these businesses. TransCanada’s network of approximately 41,000 kilometres (25,600 miles) of pipeline transports the majority of Western Canada’s natural gas production to the fastest growing markets in Canada and the United States. TransCanada owns, controls or is constructing more than 4,700 megawatts of power generation – enough to meet the electricity needs of about 4.7 million average households. The Company’s common shares trade under the symbol TRP on the Toronto and New York stock exchanges.

Note: All financial figures are in Canadian dollars unless noted otherwise.

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For further information, please contact:

Media Inquiries:

TransCanada
Hejdi Feick / Kurt Kadatz
(403) 920-7859 or Toll Free (800) 608-7859

Investor & Analyst Inquiries:

David Moneta
(403) 920-7911