TransCanada Declares Quarterly Dividends

CALGARY, ALBERTA--(Marketwire - Feb. 15, 2011) - TransCanada Corporation (TSX:TRP) (NYSE:TRP) (TransCanada or the Company) today announced that the Board of Directors (Board) of TransCanada declared a quarterly dividend of $0.42 per common share for the quarter ending March 31, 2011 on the Company's outstanding common shares, a five per cent increase over the $0.40 per share paid in each of the previous four quarters. The common share dividend is payable on April 29, 2011 to shareholders of record at the close of business on March 31, 2011. In addition, the Board declared the following regular dividends on TransCanada's preferred shares: /T/ -- A quarterly dividend of $0.2875 per share for the period ending March 31, 2011, on TransCanada's outstanding Cumulative Redeemable First Preferred Shares, Series 1. The dividend is payable on March 31, 2011, to shareholders of record at the close of business on February 28, 2011. -- A quarterly dividend of $0.25 per share for the period ending March 31, 2011 on TransCanada's outstanding Cumulative Redeemable First Preferred Shares, Series 3. The dividend is payable on March 31, 2011 to shareholders of record at the close of business on February 28, 2011. -- A quarterly dividend of $0.275 per share for the period ending April 30, 2011 on TransCanada's outstanding Cumulative Redeemable First Preferred Shares, Series 5. The dividend is payable on May 2, 2011 to shareholders of record at the close of business on March 31, 2011. /T/ The Board also declared the following regular dividends on TransCanada PipeLines Limited (TCPL) preferred shares: /T/ -- Dividend Number 50 was declared on the outstanding Cumulative Redeemable First Preferred Shares Series U in the amount of $0.70 per share for the period ending April 30, 2011. The dividend is payable on May 2, 2011 to shareholders of record at the close of business on March 31, 2011. -- Dividend Number 49 was declared on the outstanding Cumulative Redeemable First Preferred Shares Series Y in the amount of $0.70 per share for the period ending May 1, 2011. The dividend is payable on May 2, 2011 to shareholders of record at the close of business on March 31, 2010. /T/ These dividends are designated by 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. The Board also approved the issuance of common shares from treasury at a two per cent discount under TransCanada's Dividend Reinvestment Plan (DRP). Dividends on TransCanada's common shares, preferred shares as well as TCPL preferred shares are eligible to participate in the DRP allowing the holders of such shares to reinvest cash dividends into common shares of TransCanada. 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 and oil pipelines, power generation and gas storage facilities. TransCanada's network of wholly owned natural gas pipelines extends more than 60,000 kilometres (37,000 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 380 billion cubic feet of storage capacity. A growing independent power producer, TransCanada owns, or has interests in, over 10,800 megawatts of power generation in Canada and the United States. TransCanada is developing one of North America's largest oil delivery systems. TransCanada's common shares trade on the Toronto and New York stock exchanges under the symbol TRP. For more information visit: www.transcanada.com 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 security holders and potential investors with information regarding TransCanada and its subsidiaries, including management's assessment of TransCanada's and its subsidiaries' future financial and operational plans and outlook. Forward-looking statements in this document may include, among others, statements regarding the anticipated business prospects, projects and financial performance of TransCanada and its subsidiaries, expectations or projections about the future, strategies and goals for growth and expansion, expected and future cash flows, costs, schedules, including anticipated construction and completion dates, operating and financial results and expected impact of future commitments and contingent liabilities. 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 the Company'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 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. 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 not to 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.

Contact Information: TransCanada Media Inquiries: Terry Cunha/Shawn Howard 403.920.7859 or 800.608.7859 or Investor & Analyst Inquiries: David Moneta/Terry Hook/ Lee Evans 403.920.7911 or 800.361.6522 www.transcanada.com