RNS Number:9789H
TransCanada Pipelines Ld
25 February 2003

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NewsRelease


                   TransCanada Board of Directors Recommends

                                Holding Company



CALGARY, Alberta - February 25, 2003 - (TSX: TRP) (NYSE: TRP) - TransCanada
PipeLines Limited announced today that the company's Board of Directors is
unanimously recommending common shareholders vote in favour of a plan of
arrangement to establish a holding company as the parent of TransCanada
PipeLines Limited. The new entity would be named TransCanada Corporation.

Under the plan of arrangement, the assets and liabilities of TransCanada
PipeLines Limited would remain with TransCanada PipeLines Limited. TransCanada
Corporation would own all of the outstanding common shares of TransCanada
PipeLines Limited. Common shareholders of TransCanada PipeLines Limited would
become common shareholders of the publicly-traded TransCanada Corporation. The
company does not anticipate this will result in any changes to its "TRP" trading
symbol on stock exchange listings.

Common shares in TransCanada PipeLines Limited would automatically be recognized
as common shares of TransCanada Corporation, on a one-to-one basis. Upon
approval of the plan of arrangement, shareholders would not be required to take
any action for the exchange of shares. The plan of arrangement does not affect
preferred shares in TransCanada PipeLines Limited. These shares will remain with
TransCanada PipeLines Limited.

Establishing the holding company addresses a covenant contained in trust
indentures governing some of TransCanada PipeLines Limited's debt securities
that could limit the company's ability to invest funds to implement its growth
and value creation strategies. The change would not impact TransCanada PipeLines
Limited's day-to-day operations or obligations.

Details of the plan of arrangement will be included in TransCanada PipeLines
Limited's Management Proxy Circular for the 2003 Annual and Special Meeting of
Shareholders, which will be mailed to shareholders beginning on or about March
25. Common shareholders will be asked to vote in favour of the plan of
arrangement at TransCanada PipeLines Limited's Annual and Special Meeting of
Shareholders on April 25, 2003. The plan of arrangement would become effective
soon after the Meeting, pending the approval of Alberta Court of Queen's Bench
and appropriate regulators.

TransCanada PipeLines Limited is a leading North American energy company. We are
focused on natural gas transmission and power services with employees who are
expert in these businesses. Our network of approximately 38,000 kilometres of
pipeline transports the majority of western Canada's natural gas production to
the fastest growing markets in Canada and the United States. TransCanada has
interests in more than 4,000 megawatts of power - an equal amount of power can
meet the needs of about four million average households. Our common shares trade
under the symbol TRP on the Toronto and New York stock exchanges. Visit us on
the internet at www.transcanada.com for more information.

                          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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Media Inquiries:                  Glenn Herchak/Kurt Kadatz     (403) 920-7877

Investor & Analyst Inquiries:     David Moneta/Debbie Persad    (403) 920-7911


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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