TransCanada Declares Quarterly Dividends

CALGARY, Alberta -July 26, 2002 - (TSX: TRP) (NYSE: TRP) - The Board of Directors of TransCanada PipeLines Limited today declared the following regular dividends on TransCanada's preferred shares:

Dividend Number 16 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, 2002. The dividend is payable on October 30, 2002, to shareholders of record at the close of business on September 30, 2002.

Dividend Number 15 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, 2002. The dividend is payable on November 1, 2002, to shareholders of record at the close of business on September 30, 2002.

As announced today in TransCanada's Second Quarter 2002 Report to Shareholders, the Board declared a quarterly dividend of $0.25 per share on the company’s outstanding common shares for the quarter ending September 30, 2002. It is the 155th consecutive dividend paid by TransCanada on its common shares, and is payable on October 31, 2002, to shareholders of record at the close of business on September 30, 2002.

TransCanada is a leading North American energy company. It is focused on natural gas transmission and power services with employees who are expert in these businesses. The company’s network of approximately 38,000 kilometres 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 developing a total of approximately 2,250 megawatts of power -- an amount of power that can meet the needs of more than two million average households. The company’s common shares trade under the symbol TRP on the Toronto and New York stock exchanges. Visit us on the internet at www.transcanada.com for more information.

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Note: All dollar amounts are expressed in Canadian funds, unless otherwise
indicated.

Media Inquiries:
Glenn Herchak / Kurt Kadatz
(403) 920-7877

Analyst Inquiries:
David Moneta
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Debbie Persad
(403) 920-2588