TRANSCANADA

TRANSCANADA

March 15, 2005 16:01 ET

TransCanada to Offer TC PipeLines, LP Units


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: TRANSCANADA

NYSE, TSX SYMBOL: TRP

MARCH 15, 2005 - 16:01 ET

TransCanada to Offer TC PipeLines, LP Units

CALGARY, ALBERTA--(CCNMatthews - March 15, 2005) - TransCanada
Corporation (TransCanada) (TSX:TRP) (NYSE:TRP) today announced that
subsidiaries of TransCanada intend to sell 3,500,000 common units of TC
PipeLines, LP (the Partnership). The Partnership has commenced an
offering of common units owned by its general partner and an affiliate,
both indirect subsidiaries of TransCanada. The underwriters have the
option to purchase up to 525,000 additional units on the same terms and
conditions to the extent more than 3,500,000 common units are sold in
the offering.

TransCanada intends to use the net proceeds from the sale to assist in
funding its 2005 capital requirements as well as for other corporate
purposes. The Partnership will not receive any of the proceeds from the
common units sold by TransCanada.

After the offering, subsidiaries of TransCanada will continue to own the
Partnership's general partner interest as well as approximately 12 per
cent of the Partnership's common units, assuming the underwriters'
over-allotment option is not exercised.

Citigroup Global Markets Inc. and Lehman Brothers Inc. are acting as
joint book-running managers of the offering. The remainder of the
underwriting group is comprised of Goldman, Sachs & Co., UBS Securities
LLC and A.G. Edwards & Sons, Inc.

A copy of the preliminary prospectus supplement and related base
prospectus for the offering can be obtained from Lehman Brothers Inc.,
c/o ADP Financial Services, Integrated Distribution Services, 1155 Long
Island Avenue, Edgewood, NY 11717, email: monica_castillo@adp.com, or
from Citigroup Global Markets Inc., 140 58th Street, Brooklyn, NY 11220,
Attention: Prospectus Dept.

This news release does not constitute an offer to sell or a solicitation
of an offer to buy the limited partnership interests described herein,
nor shall there be any sale of these limited partnership interests in
any state or jurisdiction in which such an offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of any such jurisdiction. The offering may be made only
by means of a prospectus and related prospectus supplement.

TransCanada is a leading North American energy company. TransCanada is
focused on natural gas transmission and power services with employees
who are expert in these businesses. TransCanada's network of
approximately 41,000 kilometres (25,600 miles) of pipeline transports
the majority of Western Canada's natural gas production to the fastest
growing markets in Canada and the United States. TransCanada owns,
controls or is constructing more than 5,100 megawatts of power
generation - enough to meet the electricity needs of about 5.1 million
average households. The Company's common shares trade under the symbol
TRP on the Toronto and New York stock exchanges. Visit TransCanada on
the Internet at www.transcanada.com for more information.

Note: All financial figures are in Canadian dollars unless otherwise
noted.

FORWARD-LOOKING INFORMATION

Certain information in this news release is forward-looking and is
subject to important risks and uncertainties. The results or events
predicted in this information may differ from actual results or events.
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
availability and price of energy commodities, regulatory decisions,
competitive factors in the pipeline and power industry sectors, and the
current economic conditions in North America. For additional information
on these and other factors, see the reports filed by TransCanada with
Canadian securities regulators and with the United States Securities and
Exchange Commission. TransCanada disclaims any intention or obligation
to update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    TransCanada
    Media Inquiries
    Hejdi Feick/Kurt Kadatz
    (403) 920-7859 or (800) 608-7859
    or
    Investor & Analyst Inquiries
    David Moneta
    (403) 920-7911
    Website: www.transcanada.com