Press Release

NORTHERN BORDER PIPELINE COMPANY ANNOUNCES APPROVAL OF RATE CASE SETTLEMENT

OMAHA -- Northern Border Pipeline Company (Northern Border Pipeline) announced today that it has received Federal Energy Regulatory Commission (FERC) approval of its rate case settlement. The settlement, which was filed with the FERC in September 2000, includes the conversion of Northern Border Pipeline ’s form of tariff from cost of service to stated rates based on a “straight fixed variable” rate design.

“We are pleased to have received the FERC approval of our rate case settlement in such a timely manner,” said Bill Cordes, president of Northern Plains Natural Gas Company, Operator of the Northern Border Pipeline. “This settlement brings rate certainty to our customers for the next five years and it allows Northern Border Pipeline the opportunity to offer new services to customers within the provisions of the settlement.”

Cordes also noted that the pipeline system continues to be highly utilized. “As expected, Northern Border Pipeline is operating at contracted capacity even after the commencement of operations of Alliance Pipeline,” Cordes said.

Northern Border Pipeline will apply its rate of approximately $0.037 per 100 dekatherm miles on a uniform, system-wide mileage basis. Full conversion of Northern Border Pipeline operations to the stated rate form of tariff will be effective Feb. 1, 2001.

Implementation of the new tariff will result in estimated refunds to the customers of approximately $30 million, the majority of which Northern Border Pipeline intends to disburse prior to Dec. 31, 2000. No earnings impact is expected as the refunds were anticipated and fully reserved.

Northern Border Pipeline Company is a general partnership, which owns and operates a 1,214-mile interstate pipeline that transports primarily Canadian natural gas into the United States. Northern Border Partners, L.P. (NYSE:NBP) owns a 70 percent general partner interest in Northern Border Pipeline Company. The remaining 30 percent interest in Northern Border Pipeline is owned by TC PipeLines, LP (NASDAQ: TCLPZ).

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. Although Northern Border Pipeline Company believes that its expectations are based on reasonable assumptions, it can give no assurance that such expectations will be achieved. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, the timing of the refund payments. Please refer to the Company’s Securities and Exchange Commission filings for additional information that may affect actual results.