TransCanada Declares Quarterly Dividends

Board Approves Six Per Cent Increase to Common Share Dividend CALGARY, ALBERTA--(Marketwire - Jan. 29, 2008) - As announced today in TransCanada's (TSX:TRP)(NYSE:TRP) Fourth Quarter 2007 news release, the Board of Directors of TransCanada Corporation(TCC) declared a quarterly dividend of $0.36 per common share for the quarter ending March 31, 2008, a six per cent increase over the $0.34 per share paid in each of the previous four quarters. The dividend is payable on April 30, 2008 to shareholders of record at the close of business on March 31, 2008.

The Directors also approved the issuance of common shares from treasury at a two per cent discount under TransCanada's Dividend Reinvestment Plan (DRP), for the common share dividend payable on April 30, 2008. Dividends on TransCanada PipeLines Limited (TCPL) outstanding preferred shares are also eligible to participate in the DRP.

Also announced today, the Board of Directors of TCPL declared the following regular dividends on TCPL's preferred shares:

- Dividend Number 38 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, 2008. The dividend is payable on April 30, 2008, to shareholders of record at the close of business on March 31, 2008.

- Dividend Number 37 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, 2008. The dividend is payable on May 1, 2008 to shareholders of record at the close of business on March 31, 2008.

These dividends are designated by the Companies (TCC and TCPL) to be eligible dividends for purposes of the Income Tax Act (Canada) and any similar provincial or territorial legislation. An enhanced dividend tax credit applies to eligible dividends paid to Canadian residents.

About TransCanada

With more than 50 years experience, TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure including natural gas pipelines, power generation, gas storage facilities, and projects related to oil pipelines and LNG facilities. TransCanada's network of wholly owned pipelines extends more than 59,000 kilometres (36,500 miles), tapping into virtually all major gas supply basins in North America. TransCanada is one of the continent's largest providers of gas storage and related services with approximately 360 billion cubic feet of storage capacity. A growing independent power producer, TransCanada owns, or has interests in, approximately 7,700 megawatts of power generation in Canada and the United States. 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.

TransCanada
Media Inquiries
Cecily Dobson/Shela Shapiro
(403) 920-7859 or (800) 608-7859
or
Investor & Analyst Inquiries
David Moneta/Myles Dougan/Terry Hook
(403) 920-7911 or (800) 361-6522 ext 7911
Website: www.transcanada.com