Dividend Reinvestment Plan

TransCanada's dividend reinvestment and share purchase plan allows common and preferred shareholders to purchase additional common shares by reinvesting their cash dividend without incurring brokerage or administrative fees. Participants in the plan may make optional cash payments to buy additional shares of up to $10,000 (US $7,000) per quarter. Optional cash payments must be received by our Plan Agent, Computershare Trust Company of Canada at least three (3) business days prior to the dividend payment dates which are generally the last business day of each of January, April, July and October.

For information on TransCanada's Dividend Reinvestment Plan, please contact our plan administrator, Computershare Trust Company of Canada (formerly Montreal Trust Company of Canada) at 1-800-340-5024. The program information booklet and enrollment form are accessible on Computershare's website.

Dividend Tax Credit

TransCanada Corporation and TransCanada PipeLines Limited, for purposes of the Income Tax Act (Canada), and any similar provincial or territorial legislation, each designate that all dividends paid by TransCanada Corporation or TransCanada PipeLines Limited respectively, after Dec. 31, 2005, to be "eligible dividends" unless otherwise notified by TransCanada Corporation or TransCanada PipeLines Limited. An eligible dividend paid to a Canadian resident is entitled to the enhanced dividend tax credit.

Dividend Payments (Common Shares)*