TransCanada Declares Quarterly Dividends

CALGARY, ALBERTA, Jul 31 (MARKET WIRE) --
TransCanada Corporation (TSX: TRP) (NYSE: TRP) (TransCanada) today
announced that the Board of Directors of TransCanada (TCC) declared a
quarterly dividend of $0.36 per common share for the quarter ending
September 30, 2008 on the Company's outstanding common shares. The common
share dividend is payable on October 31, 2008 to shareholders of record
at the close of business on September 30, 2008.

The Board of 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, 2008. Dividends on TransCanada PipeLines Limited (TCPL) outstanding
preferred shares are also eligible to participate in the DRP.

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

- Dividend Number 40 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, 2008. The dividend is payable on
October 30, 2008 to shareholders of record at the close of business on
September 30, 2008.

- Dividend Number 39 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, 2008. The dividend is payable on
November 3, 2008 to shareholders of record at the close of business on
September 30, 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.

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
355 billion cubic feet of storage capacity. A growing independent power
producer, TransCanada owns, controls or is developing approximately 8,400
megawatts of power generation. 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.

FORWARD-LOOKING INFORMATION

This news release may contain certain information that is forward looking
and is subject to important risks and uncertainties. The words
"anticipate", "expect", "may", "should", "estimate", "project",
"outlook", "forecast" or other similar words are used to identify such
forward looking information. All forward-looking statements reflect
TransCanada's beliefs and assumptions based on information available at
the time the statements were made. Actual results or events may differ
from those predicted in these forward-looking statements. Factors which
could cause actual results or events to differ materially from current
expectations include, among other things, the ability of TransCanada to
successfully implement its strategic initiatives and whether such
strategic initiatives will yield the expected benefits, the operating
performance of the Company's pipeline and energy assets, the availability
and price of energy commodities, regulatory processes and decisions,
changes in environmental and other laws and regulations, competitive
factors in the pipeline and energy industry sectors, construction and
completion of capital projects, labour, equipment and material costs,
access to capital markets, interest and currency exchange rates,
technological developments and the current economic conditions in North
America. By its nature, such forward-looking information is subject to
various risks and uncertainties, which could cause TransCanada's actual
results and experience to differ materially from the anticipated results
or expectations expressed. Additional information on these and other
factors is available in the reports filed by TransCanada with Canadian
securities regulators and with the U.S. Securities and Exchange
Commission. Readers are cautioned not to place undue reliance on this
forward-looking information, which is given as of the date it is
expressed in this news release or otherwise, and to not use
future-oriented information or financial outlooks for anything other than
their intended purpose. TransCanada undertakes no obligation to update
publicly or revise any forward-looking information, whether as a result
of new information, future events or otherwise, except as required by
law.

Contacts:
TransCanada
Media Inquiries
Shela Shapiro/Cecily Dobson
(403) 920-7859 or (800) 608-7859

Investor & Analyst Inquiries
David Moneta/Myles Dougan/Terry Hook
(403) 920-7911 or (800) 361-6522 ext 7911
Website: www.transcanada.com

Copyright 2008, Market Wire, All rights reserved.

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