MEDIA ADVISORY: TransCanada Announces New Community Partnership Grants to Leading Organizations in Nebraska

OMAHA, NEBRASKA--(Marketwire - July 16, 2012) - TransCanada (TSX:TRP) (NYSE:TRP) has contributed over $285,000 through community partnership grants to outstanding organizations in Nebraska since January 2011. These grants are an integral part of TransCanada's strong dedication to building relationships with community partners to foster healthy and vibrant communities.

Through the contributions of the Keystone Pipeline project, the Great Plains Regional Operations team and TransCanada Corporation, a wide variety of community needs are met. TransCanada has recently presented grants to a number of community partners.

• The Norfolk Family YMCA has used the funding to replace aging fitness equipment. As a respected non-profit organization, the YMCA provides health and wellness programs to build strong kids, families and communities.
• This summer, TransCanada is sponsoring the Ladies Barrel Racing rodeo events through the Mid-States Rodeo Association (M-SRA). With a membership of nearly 500 cowgirls and cowboys, M-SRA promotes good will and close cooperation amongst everyone involved in the sport.
• The communities of Jefferson County and the surrounding area will benefit from TransCanada's support with the purchase of new equipment for the county-wide rescue truck. Rescue Truck 17 will be better equipped when emergency responders attend to accidents, incidents and fires in the area.
• With TransCanada's support, the Nebraska Kidney Association will purchase vital equipment that screens for people with the highest risk of developing chronic kidney disease. The new equipment will aid the Association in its mission to improve the lives of Nebraskans through early disease detection.

Corey Goulet, TransCanada's vice-president of Keystone Pipeline, says, "We work very hard to be a good neighbour in the communities where we live, work and conduct our business, so we embrace a wide range of sponsorship opportunities. Through the important work of our local community partners, we can maximize the impact of our own contribution and help people beyond our own immediate reach."

Over the past 18 months, TransCanada has supported 47 organizations in Nebraska through community partnership grants. Through these partnerships, TransCanada recognizes the importance of emergency preparedness in communities. Our partners have included Carroll Volunteer Fire Department, Seward/York Emergency Management, First Responders Critical Support Foundation and Newport Rural Fire District, among many others.

Health and safety are also a focus of TransCanada's community partnerships in Nebraska. The Visiting Nurse Association, Midlands Diabetes Education and Self-Help Center, American Heart Association and Merrick County Health and Fitness Center are among TransCanada's community partners.

Building strong community partnerships is part of TransCanada's tradition. In North America, we deal with more than 60,000 neighbours each year. We have more than 1,600 dedicated employees working in 33 states to support the company's energy infrastructure network. On projects like Keystone XL, TransCanada has been able to engage and maintain good relations with more than 5,000 landowners and thousands of community residents affected by the project.

TransCanada recently submitted a Presidential Permit application to the U.S. Department of State for the Keystone XL Pipeline from the U.S./Canada border in Montana to Steele City, Nebraska. Keystone XL is in the national interest of the United States as it would create thousands of much needed construction and manufacturing jobs and allow Americans to move closer toward achieving energy security.

TransCanada expects to begin construction of Keystone XL in the first quarter of 2013, with completion slated for late 2014 or early 2015.

With more than 60 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 operates a network of natural gas pipelines that extends more than 68,500 kilometres (42,500 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 10,900 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 or check us out on Twitter @TransCanada.

FORWARD LOOKING INFORMATION This publication contains certain information that is forward-looking and is subject to important risks and uncertainties (such statements are usually accompanied by words such as "anticipate", "expect", "would" or other similar words). 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 operation plans and outlook. All forward-looking statements reflect TransCanada's beliefs and assumptions based on information available at the time the statements were made. Readers are cautioned not to place undue reliance on this forward-looking information. TransCanada undertakes no obligation to update or revise any forward-looking information except as required by law. For additional information on the assumptions made, and the risks and uncertainties which could cause actual results to differ from the anticipated results, refer to TransCanada's Management's Discussion and Analysis dated February 15, 2012 under TransCanada's profile on SEDAR at www.sedar.com and other reports filed by TransCanada with Canadian securities regulators and with the U.S. Securities and Exchange Commission.