State of Nebraska to Play Major Role in Defining New Keystone XL Route Away From the Sandhills

LINCOLN, NEBRASKA--(Marketwire - Nov. 14, 2011) - TransCanada Corporation (TSX:TRP) (NYSE:TRP) (TransCanada) today announced it supports proposed legislation within the State of Nebraska to move the Keystone XL pipeline project forward. This legislation, introduced earlier today in the State legislature, if passed, will ensure a pipeline route will be developed in Nebraska that avoids the Sandhills.

"I am pleased to tell you that the positive conversations we have had with Nebraska leaders have resulted in legislation that respects the concerns of Nebraskans and supports the development of the Keystone XL pipeline," said Alex Pourbaix, TransCanada's president, Energy and Oil Pipelines. "I can confirm the route will be changed and Nebraskans will play an important role in determining the final route."

Working together with the State Department, Nebraska's Department of Environmental Quality will conduct an environmental assessment to define the best location for Keystone XL in Nebraska. We will cooperate with these agencies and provide them with the information they need to complete a thorough review that addresses concerns regarding the Sandhills region.

"The U.S. Department of State announced last Thursday that further assessment of alternative routes for Keystone XL was needed in Nebraska to move forward with the National Interest Determination. Today's proposed legislation is a critical step in making this happen," Pourbaix added. "The safe and reliable operation of our pipelines and all of our infrastructure has been TransCanada's priority for 60 years. This commitment will continue to guide us toward a positive outcome in Nebraska."

It is expected that once the pipeline is operational, Nebraska could see more than $150 million in property taxes to county and other local governments during the operating life of the pipeline - money that could be used to build new roads, schools and hospitals.

Construction of the pipeline in Nebraska would consist of five or six new pump stations and over 275 miles of new pipeline. The project is expected to employ over 2,200 construction workers in the state.

Keystone XL will be safe, built with high strength steel and with the highest safety standards of any pipeline in North America. 21,000 sensors monitor the length of the pipeline by satellite 24 hours a day, 365 days a year, with data refreshed every five seconds. If there is a problem, automatic shut-off valves can be activated in minutes – shutting off the flow of oil.

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's network of wholly owned natural gas pipelines extends more than 57,000 kilometres (35,500 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 10,800 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 and follow us on Twitter @TransCanada.

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