TransCanada License for Alaska Natural Gas Pipeline Approved by Alaska Legislature

CALGARY, ALBERTA, Aug 01 (MARKET WIRE) --
TransCanada Corporation (TSX: TRP) (NYSE: TRP) (TransCanada) today
received the support of the Alaska Legislature to award the company a
license for the Alaska Pipeline Project under the Alaska Gasline
Inducement Act (AGIA).

"The Legislature's decision represents a significant milestone in
advancing this major natural gas pipeline project to connect stranded
U.S. natural gas reserves to Alaskan and Lower 48 consumers. We are
pleased to receive this vote of confidence from the representatives of
the people of Alaska," stated Hal Kvisle, TransCanada's president and
chief executive officer. "This ratification of our license under AGIA
will facilitate TransCanada's continuing commercial negotiations with
potential shippers, improving the likelihood of a successful open season
and the construction of a natural gas delivery system from Prudhoe Bay to
Lower 48 markets."

Today's positive vote was the conclusion of a special session of the
Legislature which reviewed the recommendation of Alaska Governor Sarah
Palin and the Commissioners of Natural Resources and Revenue to issue
TransCanada the license. Governor Palin, her Administration and a team of
expert advisors conducted a comprehensive analysis of TransCanada's
application prior to their recommendation to the Legislature.
TransCanada's application met all the AGIA requirements, which include
protecting Alaska's interests with reasonable commercial terms; the
ability to provide in-state gas deliveries; Alaska labour opportunities;
and procedural elements that facilitate an expedited path toward state
and federal approval and a timely open season to solicit capacity on the
line.

TransCanada will now move forward with project development, which will
include engineering, environmental reviews, aboriginal relations and
commercial work to conclude an initial binding open season by July 2010.
During this period, TransCanada will continue its efforts to align with
potential shippers. If sufficient firm contracts are secured in the open
season, TransCanada would begin construction after regulatory approvals
are received. TransCanada is targeting to have the pipeline in service by
September 2018.

TransCanada applied under AGIA to build a 4.5 billion cubic feet per day
(bcf/d), 48-inch diameter natural gas pipeline running approximately
1,715 miles (2,760 km) from a new natural gas treatment plant at Prudhoe
Bay on Alaska's North Slope to Alberta. Integration of the pipeline with
TransCanada's Alberta System will provide access to diverse, Lower 48
markets across the U.S. The application includes provision for expansions
up to 5.9 bcf/d through the addition of compressor stations in Alaska and
Canada.

The proposed pipeline would parallel the route of the existing
trans-Alaska oil pipeline to a point south of Fairbanks. It would then
follow the Alaska Highway, continuing through northern British Columbia
to link with the Alberta Hub on TransCanada's pipeline grid in
northwestern Alberta. The Alaska section would be approximately 750 miles
(1,200 km) in length, with six compressor stations at start-up and at
least five natural gas delivery points in Alaska. The Canadian section to
Alberta would be approximately 965 miles (1,550 km), with ten compressor
stations at start-up and eight intermediate delivery points in the Yukon.
Maps and more detailed information about the project, including links to
TransCanada's AGIA application, are available at:
www.transcanada.com/company/alaska_pipeline_project.html.

With more than 50 years' experience, TransCanada is a leader in the
responsible development and reliable operation of North American energy
infrastructure including natural gas pipelines, power generation, gas
storage facilities, and projects related to oil pipelines and LNG
facilities. TransCanada's network of wholly owned pipelines extends more
than 59,000 kilometres (36,500 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
355 billion cubic feet of storage capacity. A growing independent power
producer, TransCanada owns, controls or is developing approximately 8,400
megawatts of power generation. TransCanada's common shares trade on the
Toronto and New York stock exchanges under the symbol TRP.

Note: All financial figures are in Canadian dollars unless noted
otherwise.

FORWARD-LOOKING INFORMATION

This News Release may contain certain information that is forward looking
and is subject to important risks and uncertainties. The words
"anticipate", "expect", "may", "should", "estimate", "project",
"outlook", "forecast" or other similar words are used to identify such
forward-looking information. All forward-looking statements reflect
TransCanada's beliefs and assumptions based on information available at
the time the statements were made. Actual results or events may differ
from those predicted in these forward-looking statements. 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 operating
performance of the Company's pipeline and energy assets, the availability
and price of energy commodities, regulatory processes and decisions,
changes in environmental and other laws and regulations, competitive
factors in the pipeline and energy industry sectors, construction and
completion of capital projects, labour, equipment and material costs,
access to capital markets, interest and currency exchange rates,
technological developments and the current economic conditions in North
America. By its nature, such forward-looking information is subject to
various risks and uncertainties, which could cause TransCanada's actual
results and experience to differ materially from the anticipated results
or expectations expressed. Additional information on these and other
factors is available in the reports filed by TransCanada with Canadian
securities regulators and with the U.S. Securities and Exchange
Commission. Readers are cautioned not to place undue reliance on this
forward-looking information, which is given as of the date it is
expressed in this News Release or otherwise, and to not use
future-oriented information or financial outlooks for anything other than
their intended purpose. TransCanada undertakes no obligation to update
publicly or revise any forward-looking information, whether as a result
of new information, future events or otherwise, except as required by
law.

Contacts:
TransCanada
Media Inquiries
Shela Shapiro/Cecily Dobson
(403) 920-7859 or (800) 608-7859

Investor & Analyst Inquiries
David Moneta/Myles Dougan/Terry Hook
(403) 920-7911 or (800) 361-6522
Website: www.transcanada.com

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