TransCanada Responds to Ontario Government's Power Market Decision

CALGARY, Alberta - March 21, 2003 - (TSX: TRP) (NYSE: TRP) - Hal Kvisle, chief executive officer of TransCanada PipeLines Limited, responded today to the Ontario government's decision not to include large industrial or commercial customers in the 4.3 cent per kilowatt hour electricity rate guarantee that now applies to small volume and designated users.

"We are pleased and encouraged by the government's decision to let Ontario's wholesale power business remain open to market competition," said Mr. Kvisle. "Ontario remains a key power market for TransCanada and we support the need for a strong and effective wholesale market for the long-term benefit of all electricity consumers in Ontario. An effective wholesale market is one that is not just "open" to competition, but actually achieves a high level of competition. A truly competitive Ontario wholesale market will succeed in attracting new and stable sources of power supply for residential and business consumers."

TransCanada has been active in the Ontario power market for more than 10 years. The company has an interest in a total of approximately 1,700 megawatts of power in the province through six facilities.

TransCanada is a leading North American energy company. We are focused on natural gas transmission and power services with employees who are expert in these businesses. Our 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 has interests in more than 4,000 megawatts of power - an equal amount of power can meet the needs of about four million average households. Our common shares trade under the symbol TRP on the Toronto and New York stock exchanges.

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