NET INCOME PER COMMON UNIT (Tables)

6 Months Ended

Jun. 30, 2015

	Three months ended		Six months ended
(unaudited)	June 30,		June 30,
(millions of dollars, except per common unit amounts)	2015	2014	2015	2014

Net income attributable to controlling interests	44 (b)	37	101 (b)	94
Net income allocated to General Partner Incentive distributions allocated to the General Partner (a)	(1) (1)	(1) -	(2) (1)	(2) -

Net income allocated to common units	42(b)	36	98(b)	92

Weighted average common units outstanding (millions) – basic and diluted	63.8	62.3	63.7	62.3
Net income per common unit – basic and diluted	$0.66(b)	$ 0.58	1.53(b)	$ 1.48

(a)

Under the terms of the Partnership Agreement, for any quarterly period, the participation of the incentive distribution rights (IDRs) is limited to the available cash distributions declared. Accordingly, incentive distributions allocated to the General Partner was based from the Partnership’s available cash during the current reporting period, but declared and paid in the subsequent reporting period.

(b)

As discussed in Notes 6 and 7, the Class B units entitle TransCanada to a distribution based on achieving the annual threshold. The distribution will be payable in the first quarter with respect to the prior year’s distributions. Consistent with the application of ASC 260 - “Earnings per share,” the Partnership will allocate a portion of net income attributable to controlling interests to the Class B units upon 30 percent of GTN’s total distributable cash flows exceeding $15 million for the nine month period ending December 31, 2015. This allocation will reduce net income allocated to common units and net income per common unit.