TransCanada Declares Quarterly Dividends

As announced today in TransCanada's Second Quarter 2007 news release, the Board of Directors of TransCanada Corporation (TSX: TRP) (NYSE: TRP) (TCC) has declared a quarterly dividend of $0.34 per common share for the quarter ending September 30, 2007. The dividend is payable on October 31, 2007 to shareholders of record at the close of business on September 28, 2007.

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 October 31, 2007. Dividends on TransCanada PipeLines Limited (TCPL) outstanding preferred shares are also eligible to participate in the DRP.

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

- Dividend Number 36 on the outstanding Cumulative Redeemable First Preferred Shares Series U in the amount of $0.70 per share for the period ending October 30, 2007. The dividend is payable on October 30, 2007 to shareholders of record at the close of business on September 28, 2007.

- Dividend Number 35 on the outstanding Cumulative Redeemable First Preferred Shares Series Y in the amount of $0.70 per share for the period ending November 1, 2007. The dividend is payable on November 1, 2007, to shareholders of record at the close of business on September 28, 2007.

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.

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.

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