TransCanada Files Application to Expand Alberta System Facilities

The North Central Corridor pipeline project is an expansionof the integrated Alberta System. It will provide capacityneeded to address increasing gas supply in northwest Alberta,declining gas supply in northeast Alberta, growing intra-Albertamarkets resulting largely from increased oil sands developmentand reduced delivery capability to interconnecting pipelinesat the Alberta-Saskatchewan border. This expansion willallow NGTL to meet increased customer requirements for the2009/2010 Gas Year and beyond.

"The North Central Corridor is the most cost-effective facilityto accommodate evolving gas supply and market dynamics bothwithin and outside Alberta," says Hal Kvisle, TransCanadapresident and chief executive officer. "We continue to workwith our customers to find innovative solutions to meettheir changing market needs."

The pipeline will connect the northwest portion of the AlbertaSystem at the existing Meikle River compressor station tothe northeast portion of the system at the existing Woodenhousecompressor station. In addition, 26 MW of compression willbe added at the existing Meikle River compressor station.Subject to regulatory approval, construction is anticipatedto begin in late 2008. The first segment of the pipelineis expected to be completed in April 2009. The second segmentis anticipated to be completed and in service in April 2010.

To the extent possible, the pipeline will be constructedalong existing infrastructure corridors to minimize environmentalimpacts. TransCanada consulted extensively with landowners,First Nations communities and other interested stakeholderslocated in the area regarding the pipeline route and hasreceived no objections from these groups. TransCanada alsoconducted extensive consultation with customers. We arecommitted to continuing to build and maintain strong relationshipswith all stakeholders who have interests in the project.

For additional information and a map, please refer to theNorth Central Corridor Pipeline Project fact sheet.

About TransCanada

With more than 50 years experience, TransCanada is a leaderin the responsible development and reliable operation ofNorth American energy infrastructure including natural gaspipelines, power generation, gas storage facilities, andprojects related to oil pipelines and LNG facilities. TransCanada'snetwork of wholly owned pipelines extends more than 59,000kilometres (36,500 miles), tapping into virtually all majorgas supply basins in North America. TransCanada is one ofthe continent's largest providers of gas storage and relatedservices with approximately 360 billion cubic feet of storagecapacity. A growing independent power producer, TransCanadaowns, or has interests in, approximately 7,700 megawattsof power generation in Canada and the United States. TransCanada'scommon shares trade on the Toronto and New York stock exchangesunder the symbol TRP.

(Note: All financial figures are in Canadian dollars unlessnoted otherwise.)

Forward-Looking Information

This news release may contain certain information that isforward-looking and is subject to important risks and uncertainties.The words "anticipate", "expect", "may", "should", "estimate","project", "outlook", "forecast" or other similar wordsare used to identify such forward looking information. Allforward-looking statements are based on TransCanada's beliefsand assumptions based on information available at the timesuch statements were made. The results or events predictedin this information may differ from actual results or events.Factors which could cause actual results or events to differmaterially from current expectations include, among otherthings, the ability of TransCanada to successfully implementits strategic initiatives and whether such strategic initiativeswill yield the expected benefits, the availability and priceof energy commodities, regulatory decisions, changes inenvironmental and other laws and regulations, competitivefactors in the pipeline and energy industry sectors, constructionand completion of capital projects, access to capital markets,interest and currency exchange rates, technological developmentsand the current economic conditions in North America. Byits nature, such forward-looking information is subjectto various risks and uncertainties which could cause TransCanada'sactual results and experience to differ materially fromthe anticipated results or other expectations expressed.For additional information on these and other factors, seethe reports filed by TransCanada with Canadian securitiesregulators and with the U.S. Securities and Exchange Commission.Readers are cautioned not to place undue reliance on thisforward-looking information, which is given as of the dateit is expressed in this news release or otherwise, and TransCanadaundertakes no obligation to update publicly or revise anyforward-looking information, whether as a result of newinformation, future events or otherwise, except as requiredby law.