exhibit132may12009.htm

(unaudited)	Three months ended March 31
(millions of dollars)		2009			2008

Revenues			2,380			2,133

Operating and Other Expenses/(Income)
Plant operating costs and other			820			698
Commodity purchases resold			447			396
Other income			(5	)		(28	)
Calpine bankruptcy settlements			-			(279	)
Writedown of Broadwater LNG project costs			-			41
			1,262			828
			1,118			1,305

Depreciation and amortization			346			310
			772			995

Financial Charges/(Income)
Interest expense			295			218
Financial charges of joint ventures			14			16
Interest income and other			(22	)		(11	)
			287			223

Income before Income Taxes and Non-Controlling Interests			485			772

Income Taxes
Current			54			247
Future			62			5
			116			252
Non-Controlling Interests
Preferred share dividends of subsidiary			6			6
Non-controlling interest in PipeLines LP			24			21
Non-controlling interest in Portland			5			44
			35			71
Net Income			334			449

Net Income Per Share
Basic and Diluted			$0.54			$0.83

Average Shares Outstanding – Basic (millions)			618			541
Average Shares Outstanding – Diluted (millions)			619			543

(unaudited)	Three months ended March 31
(millions of dollars)		2009		2008

Cash Generated From Operations
Net income		334		449
Depreciation and amortization		346		310
Future income taxes		62		5
Non-controlling interests		35		71
Employee future benefits funding (in excess of)/ lower than expense		(34	)	20
Writedown of Broadwater LNG project costs		-		41
Other		23		26
		766		922
Decrease in operating working capital		78		6
Net cash provided by operations		844		928

Investing Activities
Capital expenditures		(1,123	)	(460	)
Acquisitions, net of cash acquired		(134	)	(2	)
Deferred amounts and other		(199	)	112
Net cash used in investing activities		(1,456	)	(350	)

Financing Activities
Dividends on common shares		(156	)	(130	)
Distributions paid to non-controlling interests		(27	)	(21	)
Notes payable repaid, net		(917	)	(30	)
Long-term debt issued, net of issue costs		3,085		112
Reduction of long-term debt		(482	)	(394	)
Long-term debt of joint ventures issued		16		17
Reduction of long-term debt of joint ventures		(20	)	(29	)
Common shares issued		11		9
Net cash provided by/(used in) financing activities		1,510		(466	)

Effect of Foreign Exchange Rate Changes on Cash and Cash Equivalents		26		23

Increase in Cash and Cash Equivalents		924		135

Cash and Cash Equivalents
Beginning of period		1,308		504

Cash and Cash Equivalents
End of period		2,232		639

Supplementary Cash Flow Information
Income taxes paid		57		167
Interest paid		263		204

(unaudited)	March 31,		December 31,
(millions of dollars)	2009		2008

ASSETS
Current Assets
Cash and cash equivalents		2,232		1,308
Accounts receivable		1,070		1,280
Inventories		481		489
Other		809		523
		4,592		3,600
Plant, Property and Equipment		30,412		29,189
Goodwill		4,520		4,397
Regulatory Assets		1,596		201
Other Assets		2,231		2,027
		43,351		39,414

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Notes payable		800		1,702
Accounts payable		2,063		1,876
Accrued interest		403		359
Current portion of long-term debt		474		786
Current portion of long-term debt of joint ventures		211		207
		3,951		4,930
Regulatory Liabilities		507		551
Deferred Amounts		1,119		1,168
Future Income Taxes		2,702		1,223
Long-Term Debt		18,656		15,368
Long-Term Debt of Joint Ventures		875		869
Junior Subordinated Notes		1,249		1,213
		29,059		25,322
Non-Controlling Interests
Non-controlling interest in PipeLines LP		743		721
Preferred shares of subsidiary		389		389
Non-controlling interest in Portland		93		84
		1,225		1,194
Shareholders’ Equity		13,067		12,898
		43,351		39,414

(unaudited)	Three months ended March 31
(millions of dollars)	2009		2008

Net Income	334		449
Other Comprehensive Income/(Loss), Net of Income Taxes
Change in foreign currency translation gains and losses on investments in foreign operations(1)	(38	)	53
Change in gains and losses on hedges of investments in foreign operations(2)	-		(41	)
Change in gains and losses on derivative instruments designated as cash flow hedges(3)	27		4
Reclassification to net income of gains and losses on derivative instruments designated as cash flow hedges pertaining to prior periods (4)	4		(19	)
Other Comprehensive Income/(Loss)	(7	)	(3	)
Comprehensive Income	327		446

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

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)(5)		-			4			4
Balance at March 31, 2009		(417	)		(62	)		(479	)




Balance at December 31, 2007		(361	)		(12	)		(373	)
Change in foreign currency translation gains and losses on investments in foreign operations(1)		53			-			53
Change in gains and losses on hedges of investments in foreign operations(2)		(41	)		-			(41	)
Changes in gains and losses on derivative instruments designated as cash flow hedges(3)		-			4			4
Reclassification to net income of gains and losses on derivative instruments designated as cash flow hedges pertaining to prior periods(4)		-			(19	)		(19	)
Balance at March 31, 2008		(349	)		(27	)		(376	)

(5)

The amount of gains related to cash flow hedges reported in accumulated other comprehensive income that is expected to be reclassified to net income in the next 12 months is estimated to be $50 million ($46 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)	2009		2008

Common Shares
Balance at beginning of period	9,264		6,662
Shares issued under dividend reinvestment plan	67		54
Proceeds from shares issued on exercise of stock options	11		9
Balance at end of period	9,342		6,725

Contributed Surplus
Balance at beginning of period	279		276
Issuance of stock options	-		1
Balance at end of period	279		277

Retained Earnings
Balance at beginning of period	3,827		3,220
Net income	334		449
Common share dividends	(236	)	(195	)
Balance at end of period	3,925		3,474

Accumulated Other Comprehensive Income
Balance at beginning of period	(472	)	(373	)
Other comprehensive income	(7	)	(3	)
Balance at end of period	(479	)	(376	)
	3,446		3,098

Total Shareholders’ Equity	13,067		10,100

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, 2008. 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 2008 audited Consolidated Financial Statements included in TransCanada’s 2008 Annual Report. Unless otherwise indicated, “TransCanada“ or “the Company“ includes TransCanada Corporation and its subsidiaries. Amounts are stated in Canadian dollars unless otherwise indicated.

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, planned and unplanned plant outages, acquisitions and divestitures, 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 as 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.

Effective January 1, 2009, the temporary exemption was withdrawn from the Canadian Institute of Chartered Accountants (CICA) Handbook Section 1100 “Generally Accepted Accounting Principles”, which permitted the recognition and measurement of assets and liabilities arising from rate regulation. In addition, Section 3465 “Income Taxes” was amended to require the recognition of future income tax assets and liabilities for rate-regulated entities. The Company chose to adopt accounting policies consistent with the U.S. Financial Accounting Standards Board’s Financial Accounting Standard (FAS) 71 “Accounting for the Effects of Certain Types of Regulation”. As a result, TransCanada retained its current method of accounting for its rate-regulated operations, except that TransCanada will be required to recognize future income tax assets and liabilities, instead of using the taxes payable method, and will record an offsetting adjustment to regulatory assets and liabilities. As a result of adopting this accounting change, additional future income tax liabilities and a regulatory asset in the amount of $1.4 billion were recorded in each of Future Income Taxes and Other Assets, respectively.

Adjustments to the first quarter 2009 financial statements have been made in accordance with the transitional provisions for Section 3465, which required a cumulative adjustment in the current period to future income taxes and a regulatory asset. Restatement of prior periods’ financial statements was not permitted under Section 3465.

Effective January 1, 2009, the Company adopted CICA Handbook Section 3064 “Goodwill and Intangible Assets“, which replaced Section 3062 “Goodwill and Other Intangible Assets”. Section 3064 gives guidance on the recognition of intangible assets as well as the recognition and measurement of internally developed intangible assets. In addition, Section 3450 “Research and Development Costs” was withdrawn from the Handbook. Adopting this accounting change did not have a material effect on the Company’s financial statements.

Effective January 1, 2009, the Company adopted the accounting provisions of Emerging Issues Committee (EIC) Abstract EIC 173, “Credit Risk and the Fair Value of Financial Assets and Financial Liabilities”. Under EIC 173 an entity’s own credit risk and the credit risk of its counterparties is taken into account in determining the fair value of financial assets and financial liabilities, including derivative instruments. Adopting this accounting change did not have a material effect on the Company’s financial statements.

The CICA’s 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. TransCanada is currently considering the impact a conversion to IFRS or U.S. GAAP would have on its accounting systems and financial statements. TransCanada’s conversion project includes an analysis of project structure and governance, resources and training, analysis of key GAAP differences and a phased approach to the assessment of current accounting policies and conversion implementation. TransCanada continues to progress its conversion project by scheduling training sessions and IFRS updates for employees, and continuing to assess the impact that significant GAAP or IFRS differences may have on TransCanada.

Under existing Canadian GAAP, TransCanada follows specific accounting policies unique to a rate-regulated business. TransCanada 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 project and on TransCanada’s financial results. The IASB is currently expected to issue an exposure draft on rate-regulated accounting in July 2009.

Effective January 1, 2009, TransCanada revised its presentation of certain income and expense items in the Consolidated Statement of Income to better reflect the operating and financing structure of the Company. To conform with the new presentation, certain of the income and expense amounts pertaining to operations that were previously classified as Other Expenses/(Income) are now included in Operating and Other Expenses/(Income). Depreciation expense has been redefined as Depreciation and Amortization expense and includes amortization of $14 million in first quarter 2009 (2008 - $14 million) for power purchase arrangements, which was previously included in Commodity Purchases Resold. Support services costs previously allocated to Pipelines and Energy of $31 million in first quarter 2009 (2008 - $26 million) will now be included in Corporate. In addition, amounts related to interest and other financial charges, income taxes, interest and other income, and non-controlling interests will no longer be reported on a segmented basis. Segmented information has been retroactively reclassified to reflect all changes. These changes had no impact on Consolidated Net Income.

Three months ended March 31	Pipelines						Energy						Corporate						Total
(unaudited)(millions of dollars)	2009			2008			2009			2008			2009			2008			2009			2008

Revenues		1,264			1,176			1,116			957			-			-			2,380			2,133
Plant operating costs and other		(397	)		(380	)		(392	)		(291	)		(31	)		(27	)		(820	)		(698	)
Commodity purchases resold		-			-			(447	)		(396	)		-			-			(447	)		(396	)
Other income		4			23			-			-			1			5			5			28
Calpine bankruptcy settlements		-			279			-			-			-			-			-			279
Writedown of Broadwater LNG project costs		-			-			-			(41	)		-			-			-			(41	)
		871			1,098			277			229			(30	)		(22	)		1,118			1,305
Depreciation and amortization		(260	)		(254	)		(86	)		(56	)		-			-			(346	)		(310	)
		611			844			191			173			(30	)		(22	)		772			995
Interest expense																				(295	)		(218	)
Financial charges of joint ventures																				(14	)		(16	)
Interest income and other																				22			11
Income taxes																				(116	)		(252	)
Non-controlling interests																				(35	)		(71	)
Net Income																				334			449

For the years ended December 31, 2008 and 2007, segmented information has been retroactively reclassified to reflect all changes.

For the year ended December 31
(unaudited)	Pipelines						Energy						Corporate						Total
(millions of dollars)	2008			2007			2008			2007			2008			2007			2008			2007

Revenues		4,650			4,712			3,969			4,116			-			-			8,619			8,828
Plant operating costs and other		(1,645	)		(1,590	)		(1,307	)		(1,336	)		(110	)		(104	)		(3,062	)		(3,030	)
Commodity purchases resold		-			(72	)		(1,453	)		(1,829	)		-			-			(1,453	)		(1,901	)
Calpine bankruptcy settlements		279			-			-			16			-			-			279			16
Writedown of Broadwater LNG project costs		-			-			(41	)		-			-			-			(41	)		-
Other income		31			27			1			3			6			2			38			32
		3,315			3,077			1,169			970			(104	)		(102	)		4,380			3,945
Depreciation and amortization		(989	)		(1,021	)		(258	)		(216	)		-			-			(1,247	)		(1,237	)
		2,326			2,056			911			754			(104	)		(102	)		3,133			2,708
Interest expense																				(943	)		(943	)
Financial charges of joint ventures																				(72	)		(75	)
Interest income and other																				54			120
Income taxes																				(602	)		(490	)
Non-controlling interests																				(130	)		(97	)
Net Income																				1,440			1,223

On February 17, 2009, TCPL issued Medium-Term Notes of $300 million and $400 million maturing in February 2014 and February 2039, respectively, and bearing interest at 5.05 per cent and 8.05 per cent, respectively. These notes were issued under the $1.5 billion debt shelf prospectus filed in March 2007.

On January 9, 2009, TCPL issued Senior Unsecured Notes of US$750 million and US$1.25 billion maturing in January 2019 and January 2039, respectively, and bearing interest at 7.125 per cent and 7.625 per cent, respectively. These notes were issued under a US$3.0 billion debt shelf prospectus filed in January 2009, which now has capacity of US$1.0 billion remaining.

In the three months ended March 31, 2009, TransCanada issued 2.1 million (2008 – 1.4 million) common shares, under its Dividend Reinvestment and Share Purchase Plan (DRP), in lieu of making cash dividend payments totalling $67 million (2008 - $54 million). The dividends 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 primarily of the carrying amount, which approximates fair value, of non-derivative financial assets, such as accounts receivable, as well as the fair value of derivative financial assets. Letters of credit and cash are the primary types of security relating to these amounts. The Company does not have significant concentrations of counterparty credit risk with any individual counterparties and the majority of counterparty credit exposure is with counterparties who are investment grade. At March 31, 2009, there were no significant amounts past due or impaired.

TransCanada has significant exposures to financial institutions as they provide committed credit lines as well as critical liquidity in the foreign exchange and interest rate derivative and energy wholesale markets, and letters of credit to mitigate TransCanada’s exposures to non-creditworthy counterparties.

As the uncertainty in the global financial markets persists, TransCanada has continued to closely monitor and reassess the creditworthiness of its counterparties, including financial institutions. This has resulted in TransCanada reducing or mitigating its exposure to certain counterparties where it is deemed warranted and permitted under contractual terms. As part of its ongoing operations, TransCanada must balance its market and counterparty credit risks when making business decisions.

The Company continues to manage its liquidity risk by ensuring sufficient cash and credit facilities are available to meet its operating and capital expenditure obligations when due, under both normal and stressed economic conditions.

At March 31, 2009, the fair value of proprietary natural gas inventory held in storage as measured by the one-month forward price for natural gas less selling costs was $38 million (December 31, 2008 - $76 million). These amounts are included in Inventories. The change in fair value of proprietary natural gas inventory in the three months ended March 31, 2009 resulted in a net unrealized loss of $23 million, which was recorded as a decrease to Revenues and Inventories (2008 - gain of $59 million). The net change in fair value of natural gas forward purchase and sales contracts in the three months ended March 31, 2009 resulted in a net unrealized gain of $10 million (2008 - loss of $76 million), which was included in Revenues.

The Company hedges its net investment in self-sustaining foreign operations with U.S. dollar-denominated debt, cross-currency swaps, forward foreign exchange contracts and options. At March 31, 2009, the Company had designated as a net investment hedge U.S. dollar-denominated debt with a carrying value of $9.6 billion (US$7.6 billion) and a fair value of $8.5 billion (US$6.7 billion). At March 31, 2009, Deferred Amounts included $277 million for the fair value of derivatives used to hedge the Company’s net U.S. dollar investment in foreign operations.

	March 31, 2009					December 31, 2008
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 2009 to 2014)(2)		(280	)	U.S. 1,550			(218	)	U.S. 1,650
U.S. dollar forward foreign exchange contracts
(maturing 2009)(2)		3		U.S. 210			(42	)	U.S. 2,152
U.S. dollar options
(matured 2009)		-			-		6		U.S. 300

		(277	)	U.S. 1,760			(254	)	U.S. 4,102

	March 31, 2009				December 31, 2008
(unaudited) (millions of dollars)	Carrying Amount		Fair Value		Carrying Amount		Fair Value

Financial Assets(1)
Cash and cash equivalents		2,232		2,232		1,308		1,308
Accounts receivable and other assets(2)(3)		1,207		1,207		1,404		1,404
Available-for-sale assets(2)		28		28		27		27
		3,467		3,467		2,739		2,739

Financial Liabilities(1)(3)
Notes payable		800		800		1,702		1,702
Accounts payable and deferred amounts(4)		1,334		1,334		1,372		1,372
Accrued interest		403		403		359		359
Long-term debt and junior subordinated notes		20,379		19,871		17,367		16,152
Long-term debt of joint ventures		1,086		1,065		1,076		1,052
		24,002		23,473		21,876		20,637

March 31, 2009
(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	$	202		$	223		$	8		$	28		$	53
Liabilities	$	(127	)	$	(270	)		-		$	(41	)	$	(115	)
Notional Values
Volumes(3)
Purchases		5,313			230			180			-			-
Sales		7,165			184			324			-			-
Canadian dollars		-			-			-			-			1,016
U.S. dollars		-			-			-		U.S. 459			U.S. 1,575
Japanese yen (in billions)		-			-			-		JPY 2.9				-
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		2009-2014			2009-2013			2009-2010			2009-2012			2009-2018

Derivative Financial Instruments in Hedging Relationships(5)(6)
Fair Values(2)
Assets	$	200		$	1			-		$	2		$	8
Liabilities	$	(203	)	$	(34	)		-		$	(21	)	$	(80	)
Notional Values
Volumes(3)
Purchases		10,470			13			-			-			-
Sales		11,463			-			-			-			-
Canadian dollars		-			-			-			-			-
U.S. dollars		-			-			-		U.S. 10			U.S. 1,225
Cross-currency		-			-			-		136/U.S. 100				-

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

Maturity dates		2009-2014			2009-2012			n/a			2009-2013			2009-2013

(1)

All derivative financial instruments in the held-for-trading classification have been entered into for risk management and risk reduction 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, including purchases and sales of natural gas related to the Company’s natural gas storage business.

(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 $8 million and a notional amount of US$50 million. 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 the changes in 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.

2008
(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) (4)
Assets	$	132		$	144		$	10		$	41		$	57
Liabilities	$	(82	)	$	(150	)	$	(10	)	$	(55	)	$	(117	)
Notional Values(4)
Volumes(2)
Purchases		4,035			172			410			-			-
Sales		5,491			162			252			-			-
Canadian dollars		-			-			-			-			1,016
U.S. dollars		-			-			-		U.S. 479			U.S. 1,575
Japanese yen (in billions)		-			-			-		JPY 4.3				-
Cross-currency		-			-			-		227/U.S. 157				-

Net unrealized gains/(losses) in the three months ended March 31, 2008(3)	$	(3	)	$	(18	)		-		$	(9	)	$	(4	)

Net realized gains/(losses) in the three months ended March 31, 2008(3)	$	1		$	26			-		$	5		$	3

Maturity dates(4)		2009-2014			2009-2011		2009				2009-2012			2009-2018

Derivative Financial Instruments in Hedging Relationships(5)(6)
Fair Values(1) (4)
Assets	$	115			-			-		$	2		$	8
Liabilities	$	(160	)	$	(18	)		-		$	(24	)	$	(122	)
Notional Values (4)
Volumes(2)
Purchases		8,926			9			-			-			-
Sales		13,113			-			-			-			-
Canadian dollars		-			-			-			-			50
U.S. dollars		-			-			-		U.S. 15			U.S. 1,475
Cross-currency		-			-			-		136/U.S. 100				-

Net realized gains/(losses) in the three months ended March 31, 2008(3)	$	(1	)	$	8			-			-		$	1

Maturity dates(4)		2009-2014			2009-2011			n/a			2009-2013			2009-2019

(3)

(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 $8 million and notional amounts of $50 million and US$50 million at December 31, 2008. There were no net realized gains or losses on fair value hedges for the three months ended March 31, 2008. In first quarter 2008, 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, 2008 included gains of $2 million for the changes in 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, 2008 for discontinued cash flow hedges. No amounts have been excluded from the assessment of hedge effectiveness.

Three months ended March 31
(unaudited)	Pension Benefit Plans				Other Benefit Plans
(millions of dollars)	2009		2008		2009	2008

Current service cost	11		13		-	-
Interest cost	23		19		2	2
Expected return on plan assets	(25	)	(23	)	-	-
Amortization of net actuarial loss	1		4		-	-
Amortization of past service costs	1		1		-	-
Net benefit cost recognized	11		14		2	2

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: Cecily Dobson/Terry Cunha (403) 920-7859 or (800) 608-7859.

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