TransCanada Receives NEB Decision

CALGARY, Alberta – May 2, 2005 – (TSX: TRP) (NYSE: TRP) – TransCanada Corporation today announced it has received the National Energy Board’s (NEB’s) decision on TransCanada’s 2004 Mainline Tolls and Tariff Application Phase II. In the decision, the NEB approved an increase in the deemed common equity component of TransCanada’s Canadian Mainline System’s capital structure from 33 per cent to 36 per cent effective January 1, 2004. TransCanada had applied for deemed equity of 40 per cent.

“TransCanada views the NEB’s decision to move equity thickness to 36 per cent as a positive step in recognizing the business risks faced by the Canadian Mainline and in maintaining its financial integrity,” said Hal Kvisle, TransCanada’s chief executive officer.

TransCanada expects this increase in the common equity ratio to result in an increase in TransCanada’s corporate earnings in 2005 of approximately $29 million - $12 million related to 2004 and $17 million related to 2005.

In its application, TransCanada did not seek variance of the NEB’s generic return on equity formula. Return on equity for the Canadian Mainline remains at 9.56 per cent for 2004 and 9.46 per cent for 2005.

To view the decision, please visit the NEB’s website at www.neb.gc.ca.

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 approximately 5,700 megawatts of power generation – an amount of power that can meet the needs of about 5.7 million average households. The Company’s common shares trade under the symbol TRP on the Toronto and New York stock exchanges.

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 approximately 5,700 megawatts of power generation – an amount of power that can meet the needs of about 5.7 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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