TransCanada Declares Quarterly Dividends

CALGARY, ALBERTA, Jul 30 (MARKET WIRE) --
TransCanada Corporation (TSX: TRP) (NYSE: TRP), (TransCanada) today
announced that the Board of Directors of TransCanada declared a quarterly
dividend of $0.38 per common share for the quarter ending September 30,
2009 on the Company's outstanding common shares. The common share
dividend is payable on October 30, 2009 to shareholders of record at the
close of business on September 30, 2009.

The Board of Directors also approved the issuance of common shares from
treasury at a three per cent discount under TransCanada's dividend
reinvestment plan (DRP) for the dividend payable on October 30, 2009.
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 44 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, 2009. The dividend is payable on
October 30, 2009, to shareholders of record at the close of business on
September 30, 2009.

- Dividend Number 43 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, 2009. The dividend is payable on
November 2, 2009 to shareholders of record at the close of business on
September 30, 2009.

These dividends are designated by the Companies (TransCanada 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. 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 370 billion cubic
feet of storage capacity. A growing independent power producer,
TransCanada owns, or has interests in, over 10,900 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.

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", "believe", "may", "should", "estimate",
"project", "outlook", "forecast" or other similar words are used to
identify such forward-looking information. Forward-looking statements in
this document are intended to provide TransCanada securityholders and
potential investors with information regarding TransCanada and its
subsidiaries, including management's assessment of TransCanada's and its
subsidiaries' future financial and operations plans and outlook.
Forward-looking statements in this document may include, among others,
statements regarding the anticipated business prospects and financial
performance of TransCanada and its subsidiaries, expectations or
projections about the future, and strategies and goals for growth and
expansion. 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 that could cause actual results
or events to differ materially from current expectations include, among
others, the ability of TransCanada to successfully implement its
strategic initiatives and whether such strategic initiatives will yield
the expected benefits, the operating performance of TransCanada's
pipeline and energy assets, the availability and price of energy
commodities, capacity payments, regulatory processes and decisions,
changes in environmental and other laws and regulations, competitive
factors in the pipeline and energy 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, 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 (SEC).
Readers are cautioned to not 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:
Cecily Dobson/Terry Cunha
(403) 920-7859 or (800) 608-7859

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

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