TransCanada Contributes Almost $340,000 to Deserving Community Partners in U.S. Midwest Since 2011

OMAHA, NEBRASKA--(Marketwire - July 9, 2012) - Since January 2011, TransCanada's Keystone Pipeline project and Great Plains Regional Operations team have supported 115 organizations in the U.S. Midwest through community partnership grants totaling almost $340,000. TransCanada (TSX:TRP) (NYSE:TRP) is committed to building strong community partnerships that support the communities where we live, work and operate.

The impact of TransCanada's strong partnerships is far-reaching as our exceptional community partners have included notable organizations such as Junior Achievement of South Dakota, Salvation Army Western Division, Boys & Girls Club of Dawson County, Food Bank, and many more.

Corey Goulet, TransCanada's vice-president of Keystone Pipeline, says, "By partnering with established organizations that align with our beliefs and values, together we can make a positive impact on the wider community."

Over the past 18 months, TransCanada has partnered with many organizations focused on fire and emergency preparedness. Fire departments across multiple U.S. states have benefited from TransCanada's support, such as the fire departments in Omaha, Cushing, Cogswell, Hope, Gwinner, Smithboro, Dahlen, Aneta, Freeman, Fallon, Cabin Creek, Broadus, Keyesport and David City.

Most recently, TransCanada has presented community partnership grants to local organizations meeting a wide range of community needs.

- The Nebraska Heat Youth Program will benefit from TransCanada's community investment. With the additional funding, the Program will be poised to expand and provide its valuable academic and mentorship program to more at-risk youth in the community.

- The Omaha Tribe of Nebraska is a Native American nation living on the Omaha Reservation in Nebraska and Iowa. Tribal Historic Preservation staff will be trained so that they can effectively participate in the cultural resource surveys conducted as part of TransCanada's Keystone XL project.

- Since 2010, TransCanada has been a proud sponsor of the University of Nebraska-Lincoln Extension in Brown, Rock and Keya Paha counties. This year's grant will support the University's 4-H youth programs - hands-on educational workshops for youth on topics ranging from robotics and entrepreneurship to entomology and photography.

- Funding the Kansas Forest Service will help the organization continue, maintain and improve its tree conservation program. Through the program, the Kansas Forest Service grows tree and shrub seedlings to meet the needs of landowners for conservation purposes such as wildlife habitat, soil erosion control and wind erosion abatement.

Robert Latimer, a community relations specialist at TransCanada, says, "These organizations are doing great work lending a hand to the communities they serve and we are glad to be a partner with them in those efforts."

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.