exhibit132tcc2010q1.htm


(unaudited)	Three months ended March 31
(millions of dollars except number of shares and per share amounts)	2010			2009

Revenues		1,955			2,179

Operating and Other Expenses
Plant operating costs and other		747			832
Commodity purchases resold		256			229
Depreciation and amortization		343			346
		1,346			1,407

Financial Charges/(Income)
Interest expense		182			295
Interest expense of joint ventures		16			14
Interest income and other		(24	)		(22	)
		174			287

Income before Income Taxes and Non-Controlling Interests		435			485

Income Taxes
Current		81			54
Future		20			62
		101			116
Non-Controlling Interests
Non-controlling interest in PipeLines LP		22			24
Preferred share dividends of subsidiary		6			6
Non-controlling interest in Portland		3			5
		31			35
Net Income		303			334
Preferred Share Dividends		7			-
Net Income Applicable to Common Shares		296			334

Net Income Per Share
Basic and Diluted	$	0.43		$	0.54

Average Common Shares Outstanding (millions)
Basic		686			618
Diluted		687			619

See accompanying notes to the consolidated financial statements.

TRANSCANADA [29

FIRST QUARTER REPORT 2010

(unaudited)	Three months ended March 31
(millions of dollars)	2010		2009

Cash Generated From Operations
Net income	303		334
Depreciation and amortization	343		346
Future income taxes	20		62
Non-controlling interests	31		35
Employee future benefits funding in excess of expense	(32	)	(34	)
Other	58		23
	723		766
Decrease in operating working capital	109		82
Net cash provided by operations	832		848

Investing Activities
Capital expenditures	(1,276	)	(1,123	)
Acquisitions, net of cash acquired	-		(134	)
Deferred amounts and other	(216	)	(175	)
Net cash used in investing activities	(1,492	)	(1,432	)

Financing Activities
Dividends on common and preferred shares	(188	)	(156	)
Distributions paid to non-controlling interests	(27	)	(27	)
Notes payable issued/(repaid), net	432		(917	)
Long-term debt issued, net of issue costs	10		3,060
Reduction of long-term debt	(141	)	(482	)
Long-term debt of joint ventures issued	8		16
Reduction of long-term debt of joint ventures	(26	)	(23	)
Common shares issued	9		11
Preferred shares issued, net of issue costs	339		-
Net cash provided by financing activities	416		1,482

Effect of Foreign Exchange Rate Changes on Cash and Cash Equivalents	(17	)	26

(Decrease)/Increase in Cash and Cash Equivalents	(261	)	924

Cash and Cash Equivalents
Beginning of period	997		1,308

Cash and Cash Equivalents
End of period	736		2,232

Supplementary Cash Flow Information
Income taxes paid, net of refunds	4		57
Interest paid	239		263

(unaudited)	March 31,		December 31,
(millions of dollars)	2010		2009

ASSETS
Current Assets
Cash and cash equivalents		736		997
Accounts receivable		912		966
Inventories		463		511
Other		799		701
		2,910		3,175
Plant, Property and Equipment		34,111		32,879
Goodwill		3,645		3,763
Regulatory Assets		1,459		1,524
Intangibles and Other Assets		2,296		2,500
		44,421		43,841

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Notes payable		2,087		1,687
Accounts payable		2,605		2,195
Accrued interest		319		377
Current portion of long-term debt		636		478
Current portion of long-term debt of joint ventures		206		212
		5,853		4,949
Regulatory Liabilities		347		385
Deferred Amounts		912		743
Future Income Taxes		2,800		2,856
Long-Term Debt		15,577		16,186
Long-Term Debt of Joint Ventures		725		753
Junior Subordinated Notes		1,005		1,036
		27,219		26,908
Non-Controlling Interests
Non-controlling interest in PipeLines LP		686		705
Preferred shares of subsidiary		389		389
Non-controlling interest in Portland		81		80
		1,156		1,174
Shareholders’ Equity		16,046		15,759
		44,421		43,841

(unaudited)	Three months ended March 31
(millions of dollars)	2010		2009

Net Income Applicable to Common Shares	296		334
Other Comprehensive (Loss)/Income, Net of Income Taxes
Change in foreign currency translation gains and losses on investments in foreign operations(1)	(147	)	(38	)
Change in gains and losses on hedges of investments in foreign operations(2)	59		-
Change in gains and losses on derivative instruments designated as cash flow hedges(3)	(77	)	27
Reclassification to net income of gains and losses on derivative instruments designated as cash flow hedges pertaining to prior periods(4)	1		4
Other Comprehensive (Loss)/Income	(164	)	(7	)
Comprehensive Income	132		327

	Currency
(unaudited)	Translation			Cash Flow
(millions of dollars)	Adjustments			Hedges			Total

Balance at December 31, 2009		(592	)		(40	)		(632	)
Change in foreign currency translation gains and losses on investments in foreign operations(1)		(147	)		-			(147	)
Change in gains and losses on hedges of investments in foreign operations(2)		59			-			59
Change in gains and losses on derivative instruments designated as cash flow hedges(3)		-			(77	)		(77	)
Reclassification to net income of gains and losses on derivative instruments designated as cash flow hedges pertaining to prior periods(4)(5)		-			1			1
Balance at March 31, 2010		(680	)		(116	)		(796	)




Balance at December 31, 2008		(379	)		(93	)		(472	)
Change in foreign currency translation gains and losses on investments in foreign operations(1)		(38	)		-			(38	)
Change in gains and losses on hedges of investments in foreign operations(2)		-			-			-
Changes in gains and losses on derivative instruments designated as cash flow hedges(3)		-			27			27
Reclassification to net income of gains and losses on derivative instruments designated as cash flow hedges pertaining to prior periods(4)		-			4			4
Balance at March 31, 2009		(417	)		(62	)		(479	)

(5)

Losses related to cash flow hedges reported in Accumulated Other Comprehensive (Loss)/Income and expected to be reclassified to Net Income in the next 12 months are estimated to be $68 million ($35 million, net of tax). These estimates assume constant commodity prices, interest rates and foreign exchange rates over time, however, the amounts reclassified will vary based on the actual value of these factors at the date of settlement.

(unaudited)	Three months ended March 31
(millions of dollars)	2010		2009

Common Shares
Balance at beginning of period	11,338		9,264
Shares issued under dividend reinvestment plan	78		67
Proceeds from shares issued on exercise of stock options	9		11
Balance at end of period	11,425		9,342

Preferred Shares
Balance at beginning of period	539			-
Proceeds from shares issued under public offering, net of issue costs	342			-
Balance at end of period	881			-

Contributed Surplus
Balance at beginning of period	328		279
Issuance of stock options	1		-
Balance at end of period	329		279

Retained Earnings
Balance at beginning of period	4,186		3,827
Net income	303		334
Common share dividends	(275	)	(236	)
Preferred share dividends	(7	)	-
Balance at end of period	4,207		3,925

Accumulated Other Comprehensive (Loss)/Income
Balance at beginning of period	(632	)	(472	)
Other comprehensive (loss)/income	(164	)	(7	)
Balance at end of period	(796	)	(479	)
	3,411		3,446

Total Shareholders’ Equity	16,046		13,067

The consolidated financial statements of TransCanada Corporation (TransCanada or the Company) have been prepared in accordance with Canadian generally accepted accounting principles (GAAP). The accounting policies applied are consistent with those outlined in TransCanada's annual audited Consolidated Financial Statements for the year ended December 31, 2009. These Consolidated Financial Statements reflect all normal recurring adjustments that are, in the opinion of management, necessary to present fairly the financial position and results of operations for the respective periods. These Consolidated Financial Statements do not include all disclosures required in the annual financial statements and should be read in conjunction with the 2009 audited Consolidated Financial Statements included in TransCanada’s 2009 Annual Report. Unless otherwise indicated, “TransCanada“ or “the Company“ includes TransCanada Corporation and its subsidiaries. Amounts are stated in Canadian dollars unless otherwise indicated. Certain comparative figures have been reclassified to conform with the current year’s presentation.

In Pipelines, which consists primarily of the Company's investments in regulated pipelines and regulated natural gas storage facilities, annual revenues and net income fluctuate over the long term based on regulators' decisions and negotiated settlements with shippers. Generally, quarter-over-quarter revenues and net income during any particular fiscal year remain relatively stable with fluctuations resulting from adjustments being recorded due to regulatory decisions and negotiated settlements with shippers, seasonal fluctuations in short-term throughput volumes on U.S. pipelines, acquisitions and divestitures, and developments outside of the normal course of operations.

In Energy, which consists primarily of the Company’s investments in electrical power generation plants and non-regulated natural gas storage facilities, quarter-over-quarter revenues and net income are affected by seasonal weather conditions, customer demand, market prices, capacity payments, planned and unplanned plant outages, acquisitions and divestitures, certain fair value adjustments and developments outside of the normal course of operations.

In preparing these financial statements, TransCanada is required to make estimates and assumptions that affect both the amount and timing of recording assets, liabilities, revenues and expenses since the determination of these items may be dependent on future events. The Company uses the most current information available and exercises careful judgement in making these estimates and assumptions. In the opinion of management, these consolidated financial statements have been properly prepared within reasonable limits of materiality and within the framework of the Company’s significant accounting policies.

The Canadian Institute of Chartered Accountants' (CICA) Accounting Standards Board announced that Canadian publicly accountable enterprises are required to adopt International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB), effective January 1, 2011. Effective January 1, 2011, the Company will begin reporting under IFRS.

TransCanada currently follows specific accounting policies unique to a rate-regulated business. The Company is actively monitoring developments regarding potential future guidance on the applicability of certain aspects of rate-regulated accounting under IFRS. Developments in this area could have a significant effect on the scope of the Company’s IFRS project and on TransCanada’s IFRS financial results. The Company is assessing the impact of developments related to the IASB’s July 2009 Exposure Draft ‘‘Rate-Regulated Activities’’.

Three months ended March 31	Pipelines				Energy(1)				Corporate				Total
(unaudited)(millions of dollars)	2010		2009		2010		2009		2010		2009		2010		2009

Revenues	1,129		1,264		826		915		-		-		1,955		2,179
Plant operating costs and other	(361	)	(393	)	(360	)	(409	)	(26	)	(30	)	(747	)	(832	)
Commodity purchases resold	-		-		(256	)	(229	)	-		-		(256	)	(229	)
Depreciation and amortization	(253	)	(260	)	(90	)	(86	)	-		-		(343	)	(346	)
	515		611		120		191		(26	)	(30	)	609		772
Interest expense													(182	)	(295	)
Interest expense of joint ventures													(16	)	(14	)
Interest income and other													24		22
Income taxes													(101	)	(116	)
Non-controlling interests													(31	)	(35	)
Net Income													303		334
Preferred share dividends													(7	)	-
Net Income Applicable to Common Shares													296		334

(1)

Effective January 1, 2010, the Company records net realized and unrealized gains and losses on derivatives used to purchase and sell power, natural gas and fuel oil in order to manage Energy’s assets on a net basis in Revenues. Comparative results for 2009 reflect amounts reclassified from Commodity Purchases Resold to Revenues.

In March 2010, TransCanada completed a public offering of 14 million Series 3 cumulative redeemable first preferred shares, including the full exercise of an underwriters’ over-allotment option of two million shares, under its September 2009 base shelf prospectus. The preferred shares were issued at $25 per share, resulting in gross proceeds of $350 million including the over-allotment option. The holders of the preferred shares are entitled to receive fixed cumulative dividends at an annual rate of $1.00 per share, payable quarterly, yielding four per cent per annum, for the initial five year period ending June 30, 2015, with the first dividend payment scheduled for June 30, 2010. The dividend rate will reset on June 30, 2015 and every five years thereafter to a yield per annum equal to the sum of the then five year Government of Canada bond yield and 1.28 per cent. The preferred shares are redeemable by TransCanada on or after June 30, 2015. The net proceeds of this offering are expected to be used to partially fund capital projects, for general corporate purposes and to repay short-term debt.

The Series 3 preferred shareholders will have the right to convert their shares into Series 4 cumulative redeemable first preferred shares on June 30, 2015 and on June 30 of every fifth year thereafter. The holders of Series 4 preferred shares will be entitled to receive quarterly floating rate cumulative dividends at a yield per annum equal to the sum of the then 90 day Government of Canada treasury bill rate and 1.28 per cent.

In the three months ended March 31, 2010, TransCanada issued 2.3 million common shares (2009 – 2.1 million) under its Dividend Reinvestment and Share Purchase Plan (DRP), in lieu of making cash dividend payments totalling $78 million (2009 - $67 million). The dividends under the DRP were paid with common shares issued from treasury.

TransCanada’s maximum counterparty credit exposure with respect to financial instruments at the balance sheet date, without taking into account security held, consisted of accounts receivable, the fair value of derivative assets and loans and advances receivable. The carrying amounts and fair values of these financial assets are included in Accounts Receivable and Other in the Non-Derivative Financial Instruments Summary table below. Letters of credit and cash are the primary types of security provided to support these amounts. The majority of counterparty credit exposure is with counterparties who are investment grade. At March 31, 2010, there were no significant amounts past due or impaired.

At March 31, 2010, the fair value of proprietary natural gas inventory held in storage, as measured using a weighted average of forward prices for the following four months less selling costs, was $54 million (December 31, 2009 - $73 million). The change in fair value of proprietary natural gas inventory in storage in the three months ended March 31, 2010 resulted in a net pre-tax unrealized loss of $24 million (2009 - loss of $23 million), which was recorded as a decrease to Revenues and Inventories. The net change in fair value of natural gas forward purchase and sale contracts in the three months ended March 31, 2010 resulted in a net pre-tax unrealized gain of $3 million (2009 - gain of $10 million), which was recorded as an increase to Revenues.

TransCanada uses a Value-at-Risk (VaR) methodology to estimate the potential impact from its exposure to market risk on its open liquid positions. VaR represents the potential change in pre-tax earnings over a given holding period. It is calculated assuming a 95 per cent confidence level that the daily change resulting from normal market fluctuations in its open positions will not exceed the reported VaR. Although losses are not expected to exceed the statistically estimated VaR on 95 per cent of occasions, losses on the other five per cent of occasions could be substantially greater than the estimated VaR. TransCanada’s consolidated VaR was $6 million at March 31, 2010 (December 31, 2009 – $12 million). The decrease from December 31, 2009 was primarily due to decreased prices and lower open positions in the U.S. Power portfolio.

The Company hedges its net investment in self-sustaining foreign operations (on an after-tax basis) with U.S. dollar-denominated debt, cross-currency interest rate swaps, forward foreign exchange contracts and foreign exchange options. At March 31, 2010, the Company had designated as a net investment hedge U.S. dollar-denominated debt with a carrying value of $7.7 billion (US$7.6 billion) and a fair value of $8.0 billion (US$7.9 billion). At March 31, 2010, $158 million (December 31, 2009 - $96 million) was included in Intangibles and Other Assets for the fair value of forwards and swaps used to hedge the Company’s net U.S. dollar investment in foreign operations.

March 31, 2010

December 31, 2009

Asset/(Liability)

(unaudited)

(millions of dollars)

Fair

Value(1)

Notional or Principal Amount

Fair

Value(1)

Notional or Principal Amount

U.S. dollar cross-currency swaps

(maturing 2010 to 2014)

140

U.S. 2,000

U.S. 1,850

U.S. dollar forward foreign exchange contracts

(maturing 2010)

U.S. 1,030

U.S. 765

U.S. dollar options

(matured 2010)

U.S. 100

158

U.S. 3,030

U.S. 2,715

	March 31, 2010		December 31, 2009
(unaudited) (millions of dollars)	Carrying Amount	Fair Value	Carrying Amount	Fair Value

Financial Assets(1)
Cash and cash equivalents	736	736	997	997
Accounts receivable and other(2)(3)	1,363	1,402	1,432	1,483
Available-for-sale assets(2)	22	22	23	23
	2,121	2,160	2,452	2,503

Financial Liabilities(1)(3)
Notes payable	2,087	2,087	1,687	1,687
Accounts payable and deferred amounts(4)	1,638	1,638	1,538	1,538
Accrued interest	319	319	377	377
Long-term debt	16,213	19,208	16,664	19,377
Junior subordinated notes	1,005	987	1,036	976
Long-term debt of joint ventures	931	1,000	965	1,025
	22,193	25,239	22,267	24,980

(1)

Consolidated Net Income in first quarter 2010 included losses of $7 million (2009 – losses of $14 million) for fair value adjustments related to interest rate swap agreements on US$250 million (2009 – US$200 million) of long-term debt. There were no other unrealized gains or losses from fair value adjustments to the financial instruments.

March 31, 2010
(unaudited) (all amounts in millions unless otherwise indicated)	Power			Natural Gas			Oil Products		Foreign Exchange			Interest

Derivative Financial Instruments Held for Trading(1)
Fair Values(2)
Assets	$319			$178			-		$1			$26
Liabilities	$(251	)		$(182	)		-		$(12	)		$(73	)
Notional Values
Volumes(3)
Purchases	16,661			112			-		-			-
Sales	17,657			99			-		-			-
Canadian dollars	-			-			-		-			838
U.S. dollars	-			-			-		U.S. 612			U.S. 1,500
Cross-currency	-			-			-	47/U.S. 37				-

Net unrealized (losses)/gains in the three months ended March 31, 2010(4)	$(16	)		$2			-		-			$(4	)

Net realized gains/(losses) in the three months ended March 31, 2010(4)	$22			$(12	)		-		$8			$(4	)

Maturity dates	2010-2015		2010-2014			2010			2010-2012		2010-2018

Derivative Financial Instruments in Hedging Relationships(5)(6)
Fair Values(2)
Assets	$191			-			-		-			$10
Liabilities	$(313	)		$(53	)		-		$(48	)		$(44	)
Notional Values
Volumes(3)
Purchases	15,819			31			-		-			-
Sales	12,385			-			-		-			-
U.S. dollars	-			-			-		U.S. 120			U.S. 2,075
Cross-currency	-			-			-	136/U.S. 100				-

Net realized losses in the three months ended March 31, 2010(4)	$(7	)		$(3	)		-		-			$(10	)

Maturity dates	2010-2015			2010-2012			n/a		2010- 2014			2010-2020

(1)

All derivative financial instruments in the held-for-trading classification have been entered into for risk management purposes and are subject to the Company’s risk management strategies, policies and limits. These include derivatives that have not been designated as hedges or do not qualify for hedge accounting treatment but have been entered into as economic hedges to manage the Company’s exposures to market risk.

(4)

Realized and unrealized gains and losses on power, natural gas and oil products derivative financial instruments held for trading are included in Revenues. Realized and unrealized gains and losses on interest rate and foreign exchange derivative financial instruments held for trading are included in Interest Expense and Interest Income and Other, respectively. The effective portion of unrealized gains and losses on derivative financial instruments in hedging relationships are initially recognized in Other Comprehensive Income, and are reclassified to Revenues, Interest Expense and Interest Income and Other, as appropriate, as the original hedged item settles.

(5)

All hedging relationships are designated as cash flow hedges except for interest rate derivative financial instruments designated as fair value hedges with a fair value of $7 million and a notional amount of US$150 million. Net realized gains on fair value hedges for the three months ended March 31, 2010 were $1 million and were included in Interest Expense. In first quarter 2010, the Company did not record any amounts in Net Income related to ineffectiveness for fair value hedges.

(6)

Net Income for the three months ended March 31, 2010 included losses of $8 million for changes in the fair value of power and natural gas cash flow hedges that were ineffective in offsetting the change in fair value of their related underlying positions. There were no gains or losses included in Net Income for the three months ended March 31, 2010 for discontinued cash flow hedges. No amounts have been excluded from the assessment of hedge effectiveness.

TRANSCANADA [40

FIRST QUARTER REPORT 2010

2009
(unaudited) (all amounts in millions unless otherwise indicated)	Power		Natural Gas		Oil Products			Foreign Exchange			Interest

Derivative Financial Instruments Held for Trading
Fair Values(1)(2)
Assets	$150		$107		$5			-			$25
Liabilities	$(98	)	$(112	)	$(5	)		$(66	)		$(68	)
Notional Values(2)
Volumes(3)
Purchases	15,275		238		180			-			-
Sales	13,185		194		180			-			-
Canadian dollars	-		-		-			-			574
U.S. dollars	-		-		-			U.S. 444		U.S. 1,325
Cross-currency	-		-		-		227/ U.S. 157				-

Net unrealized gains/(losses) in the three months ended March 31, 2009(4)	$21		$(35	)	$7			$1			-

Net realized gains/(losses) in the three months ended March 31, 2009(4)	$10		$26		$(3	)		$6			$(4	)

Maturity dates(2)	2010-2015		2010-2014		2010			2010-2012			2010-2018

Derivative Financial Instruments in Hedging Relationships(5)(6)
Fair Values(1)(2)
Assets	$175		$2		-			-			$15
Liabilities	$(148	)	$(22	)	-			$(43	)		$(50	)
Notional Values(2)
Volumes(3)
Purchases	13,641		33		-			-			-
Sales	14,311		-		-			-			-
U.S. dollars	-		-		-			U.S. 120		U.S. 1,825
Cross-currency	-		-		-		136/ U.S. 100				-

Net realized gains/(losses) in the three months ended March 31, 2009(4)	$26		$(10	)	-			-			$(7	)

Maturity dates(2)	2010-2015		2010-2014		n/a			2010-2014			2010-2020

(4)

(5)

All hedging relationships are designated as cash flow hedges except for interest rate derivative financial instruments designated as fair value hedges with a fair value of $4 million and a notional amount of US$150 million at December 31, 2009. Net realized gains on fair value hedges for the three months ended March 31, 2009 were $1 million and were included in Interest Expense. In first quarter 2009, the Company did not record any amounts in Net Income related to ineffectiveness for fair value hedges.

(6)

Net Income for the three months ended March 31, 2009 included gains of $5 million for changes in the fair value of power and natural gas cash flow hedges that were ineffective in offsetting the change in fair value of their related underlying positions. There were no gains or losses included in Net Income for the three months ended March 31, 2009 for discontinued cash flow hedges. No amounts have been excluded from the assessment of hedge effectiveness.

The Company’s financial assets and liabilities recorded at fair value have been categorized into three categories based on a fair value hierarchy. Fair value of assets and liabilities included in Level I is determined by reference to quoted prices in active markets for identical assets and liabilities. Assets and liabilities in Level II include valuations using inputs other than quoted prices for which all significant outputs are observable, either directly or indirectly. This category includes fair value determined using valuation techniques, such as option pricing models and extrapolation using observable inputs. Level III valuations are based on inputs that are not readily observable and are significant to the overall fair value measurement. Long-dated commodity transactions in certain markets and the fair value of guarantees are included in this category. Long-dated commodity prices are derived with a third-party modelling tool that uses market fundamentals to derive long-term prices. The fair value of guarantees is estimated by discounting the cash flows that would be incurred if letters of credit were used in place of the guarantees.

(unaudited) (millions of dollars, pre-tax)	Quoted Prices in Active Markets (Level I)		Significant Other Observable Inputs (Level II)		Significant Unobservable Inputs (Level III)		Total

Natural Gas Inventory	-		54		-		54
Derivative Financial Instruments:
Assets	137		742		19		898
Liabilities	(205	)	(762	)	(24	)	(991	)
Available-for-sale assets	22		-		-		22
Guarantee Liabilities(1)	-		-		(9	)	(9	)
	(46	)	34		(14	)	(26	)

(unaudited)
(millions of dollars, pre-tax)	Derivatives(1)		Guarantees(2)		Total

Balance at December 31, 2009	(2	)	(9	)	(11	)
New contracts(3)	(10	)	-		(10	)
Settlements	(1	)	-		(1	)
Transfers out of Level III	(5	)	-		(5	)
Change in unrealized gains recorded in Net Income	5		-		5
Change in unrealized gains recorded in Other Comprehensive Income	8		-		8
Balance at March 31, 2010	(5	)	(9	)	(14	)

A 100 basis points increase or 100 basis points decrease in the letter of credit rate, with all other variables held constant, would cause a $5 million increase or a $5 million decrease, respectively, in the fair value of guarantee liabilities outstanding as at March 31, 2010. Similarly, the effect of a 100 basis points increase or 100 basis points decrease in the discount rate on the fair value of guarantee liabilities outstanding as at March 31, 2010 would cause a $1 million decrease in the liability or a $1 million increase in the liability, respectively.

Three months ended March 31	Pension Benefit Plans				Other Benefit Plans
(unaudited)(millions of dollars)	2010		2009		2010	2009

Current service cost	12		11		-	-
Interest cost	23		23		2	2
Expected return on plan assets	(27	)	(25	)	-	-
Amortization of net actuarial loss	2		1		-	-
Amortization of past service costs	1		1		-	-
Net benefit cost recognized	11		11		2	2

Amounts received under the Bruce B floor price mechanism in any year are subject to repayment if spot prices exceed the floor price. With respect to 2010, TransCanada currently expects spot prices to be less than the floor price for the remainder of the year, therefore, no amounts recorded in revenues in the first three months of 2010 are expected to be repaid.

TransCanada welcomes questions from shareholders and potential investors. Please telephone:

Investor Relations, at (800) 361-6522 (Canada and U.S. Mainland) or direct dial David Moneta/Myles Dougan/Terry Hook at (403) 920-7911. The investor fax line is (403) 920-2457. Media Relations: Terry Cunha/Cecily Dobson

(403) 920-7859 or (800) 608-7859.

Visit the TransCanada website at: http://www.transcanada.com.