NOTE 16 RELATED PARTY TRANSACTIONS

The Partnership does not have any employees. The management and operating functions are provided by the General Partner. The General Partner does not receive a management fee in connection with its management of the Partnership. The Partnership reimburses the General Partner for all costs of services provided, including the costs of employee, officer and director compensation and benefits, and all other expenses necessary or appropriate to the conduct of the business of, and allocable to, the Partnership. Such costs include (i) overhead costs (such as office space and equipment) and (ii) out-of-pocket expenses related to the provision of such services. The Partnership Agreement provides that the General Partner will determine the costs that are allocable to the Partnership in any reasonable manner determined by the General Partner in its sole discretion. Total costs charged to the Partnership by the General Partner were $3 million for each of the years ended December 31, 2015, 2014 and 2013.

As operator, TransCanada's subsidiaries provide capital and operating services to GTN, Northern Border, Bison, Great Lakes, North Baja and Tuscarora (together, "our pipeline systems"). TransCanada's subsidiaries incur costs on behalf of our pipeline systems, including, but not limited to, employee salary and benefit costs, and property and liability insurance costs.

Capital and operating costs charged to our pipeline systems for the years ended December 31, 2015, 2014 and 2013 by TransCanada's subsidiaries and amounts payable to TransCanada's subsidiaries at December 31, 2015 and 2014 are summarized in the following tables:

Year ended December 31 (millions of dollars)		2015	2014	2013

Capital and operating costs charged by TransCanada's subsidiaries to:
	GTN(a)(b)	30	30	28
	Northern Border(a)	36	35	30
	Bison(a)(b)(d)	4	6	5
	Great Lakes(a)	30	30	31
	North Baja	5	5	4
	Tuscarora	4	4	4
Impact on the Partnership's net income attributable to controlling interests:
	GTN(b)(c)	25	19	19
	Northern Border	14	16	14
	Bison(b)(d)	4	4	4
	Great Lakes	13	13	14
	North Baja	5	4	4
	Tuscarora	4	4	4

December 31 (millions of dollars)		2015	2014

Amount payable to TransCanada's subsidiaries for costs charged in the year by:
	GTN(a)	3	10
	Northern Border(a)	5	10
	Bison(a)	–	2
	Great Lakes(a)	3	9
	North Baja	–	1
	Tuscarora	1	1


(a)	Represents 100 percent of the costs.
(b)	Recast as discussed in Note 2 and Note 6.
(c)	In 2015, the Partnership acquired remaining 30 percent interest in GTN (Refer to Note 6).
(d)	In 2014, the Partnership acquired remaining 30 percent interest in Bison (Refer to Note 6).

Great Lakes' earns transportation revenues from TransCanada and its affiliates, some of which are provided at discounted rates and some at maximum recourse rates. Great Lakes earned $125 million of transportation revenues under these contracts in 2015 (2014 – $71 million; 2013 – $68 million). This amount represents 71 percent of total revenues earned by Great Lakes in 2015 (2014 – 49 percent; 2013 – 55 percent). Great Lakes also earned $2 million in affiliated rental revenue in 2015 (2014 – $2 million and 2013 – $1 million).

Revenue from TransCanada and its affiliates of $59 million is included in the Partnership's equity earnings from Great Lakes in 2015 (2014 – $34 million; 2013 – $32 million). At December 31, 2015, $17 million was included in Great Lakes' receivables in regards to the transportation contracts with TransCanada and its affiliates (2014 – $15 million).

Effective November 1, 2014, Great Lakes executed contracts with an affiliate, ANR Pipeline Company (ANR), to provide firm service in Michigan and Wisconsin. These contracts were at the maximum FERC authorized rate and were intended to replace historical contracts. On December 3, 2014, the FERC accepted and suspended Great Lakes' tariff records to become effective May 3, 2015, subject to refund. On February 2, 2015, FERC issued an Order granting a rehearing and clarification request submitted by Great Lakes, which allowed additional time for FERC to consider Great Lakes' request. Following extensive discussions with numerous shippers and other stakeholders, on April 20, 2015, ANR filed a settlement with FERC that included an agreement by ANR to pay Great Lakes the difference between the historical and maximum rates (ANR Settlement). Great Lakes provided service to ANR under multiple service agreements and rates through May 3, 2015 when Great Lakes' tariff records became effective and subject to refund. Great Lakes deferred an approximate $9 million of revenue related to services performed in 2014 and approximately $14 million of additional revenue related to services performed through May 3, 2015 under such agreements. On October 15, 2015, FERC accepted and approved the ANR Settlement. As a result, Great Lakes recognized the deferred transportation revenue of approximately $23 million in the fourth quarter of 2015.

Bison's former parent, TransCanada, made an equity contribution to Bison of $18 million in the second quarter of 2013. This amount represents the TransCanada's 75 percent share of a $24 million cash call from Bison to repay inter-affiliate debt primarily related to pipeline construction costs, including reclamation and restoration work.

Effective October 1, 2013, GTN and Bison participated in the Partnership's cash management program. Prior to this, GTN and Bison were part of TransCanada's cash management program. This program matches short-term cash surpluses and borrowing requirements of participating subsidiaries, thus minimizing total borrowing from outside sources. Funds advanced under the program are considered to be a loan, accruing interest and repayable on demand. GTN and Bison will receive interest on funds advanced to the Partnership at the rate of interest earned by the Partnership on its short-term cash investments and will pay interest on funds advanced from the Partnership based on the Partnership's short-term borrowing costs. At December 31, 2015 and 2014, GTN and Bison did not have any demand loan receivable from an affiliate or a demand loan payable to an affiliate.