The Final Environmental Impact Statement, a requirement for the Presidential Permit process, is the result of nearly two years of detailed analysis of the Keystone Pipeline project proposal by more than a dozen U.S. federal agencies and other interested stakeholders. A decision is anticipated to be issued in mid-February regarding Keystone's application for a Presidential Permit authorizing the construction and operation of the facilities at the U.S./Canada border crossing.

"This outcome is another significant milestone in advancing the Keystone Pipeline project," said Hal Kvisle, TransCanada president and chief executive officer. "We plan to begin construction in second quarter 2008 to achieve an in-service date of fourth quarter 2009 in order to move the growing supply of Canadian crude oil to key U.S. markets."

Keystone received National Energy Board approval last year for two major regulatory applications to construct and operate the Canadian portion of the project. Applications for other U.S. regulatory approvals at the state level are proceeding and decisions are expected to be received during the first quarter of 2008.

The 3,456-kilometer (2,148-mile) Keystone Pipeline will transport crude oil from Hardisty, Alberta to U.S. Midwest markets at Wood River and Patoka, Ill., and to Cushing, Okla. The Canadian portion of the project involves the conversion of approximately 864 kilometers (537 miles) of existing Canadian Mainline pipeline facilities from natural gas to crude oil transmission service and construction of approximately 373 kilometers (232 miles) of pipeline, pump stations and terminal facilities at Hardisty, Alberta. The U.S. portion of the project includes construction of approximately 2,219 kilometers (1,379 miles) of pipeline and pump stations. It is expected that on start-up in late 2009 Keystone will be capable of delivering 435,000 barrels per day to Wood River and Patoka, Ill. It will be expanded to 590,000 barrels per day and extended to Cushing, Okla., in late 2010.

To view a map of the proposed pipeline route and obtain other information about the Keystone Pipeline, visit the project web page at www.transcanada.com/keystone.

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 kilometers (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 360 billion cubic feet of storage capacity. A growing independent power producer, TransCanada owns, or has interests in, approximately 7,700 megawatts of power generation in Canada and the United States.