NON-CONTROLLING INTERESTS

The Company's Non-controlling interests included in the Consolidated balance sheet are as follows:



at December 31	2016	2015
(millions of Canadian $)	2016	2015

Non-controlling interest in TC PipeLines, LP	1,596	1,590
Non-controlling interest in Portland Natural Gas Transmission System	130	127
	1,726	1,717

The Company's Non-controlling interests included in the Consolidated statement of income are as follows:



year ended December 31	2016	2015		2014
(millions of Canadian $)	2016	2015		2014

Non-controlling interest in TC PipeLines, LP	215	(13	)	136
Non-controlling interest in Portland Natural Gas Transmission System	20	19		15
Non-controlling interest in Columbia Pipeline Partners LP	17	—		—
	252	6		151

During 2016, the non-controlling interest in TC PipeLines, LP increased from 72.0 per cent to 73.2 per cent due to periodic issuances of common units in TC PipeLines, LP to third parties under an at-the-market issuance program (ATM program). In 2015, the non-controlling interest in TC PipeLines, LP ranged between 71.7 per cent and 72.0 per cent and, in 2014, between 71.1 per cent and 71.7 per cent.

On July 1, 2016, TCPL acquired Columbia, which included a 53.5 per cent non-controlling interest in CPPL. On November 1, 2016, TCPL announced that it had entered into an agreement to acquire, for cash, all outstanding publicly held common units of CPPL. The transaction is expected to close in the first quarter of 2017 subject to receipt of CPPL unitholder approval and customary closing conditions.

At December 31, 2016, the entire $1,073 million (US$799 million) of TCPL's non-controlling interest in CPPL was recorded as Common units subject to rescission or redemption on the Consolidated balance sheet. The Company classified this

non-controlling interest outside of equity because the potential rights of the units are not within the control of the Company.

The non-controlling interest in Portland Natural Gas Transmission System (PNGTS) as at December 31, 2016 represented the

38.3 per cent interest held by third parties (2015 and 2014 – 38.3 per cent). On January 1, 2016, TCPL sold 49.9 per cent of PNGTS to TC PipeLines, LP. Refer to Note 26, Other acquisitions and disposition for further information.

In 2016, TCPL received fees of $4.5 million from TC PipeLines, LP (2015 – $4 million and 2014 – $3 million) and $8 million from PNGTS (2015 – $11 million; 2014 – $8 million) for services provided.

At December 31, 2015, TC PipeLines, LP recorded an impairment charge of US$199 million related to its equity investment in Great Lakes. The non-controlling interest's share of this charge was US$143 million and was included in the Net income attributable to non-controlling interests in the Consolidated statement of income.

Common Units of TC PipeLines, LP Subject to Rescission

In connection with a late filing of an employee-related Form 8-K with the SEC, in March 2016, TC PipeLines, LP became ineligible to use the then effective shelf registration statement upon filing of its 2015 Annual Report. As a result, it was determined that the purchasers of the 1.6 million common units that were issued from March 8, 2016 to May 19, 2016 under the TC PipeLines, LP ATM program may have a rescission right for an amount equal to the purchase price paid for the units, plus statutory interest and less any distributions paid, upon the return of such units to TC PipeLines, LP. No unitholder has claimed or attempted to exercise any rescission rights to date and these rights expire one year from the date of purchase of the unit.

At December 31, 2016, $106 million (US$82 million) was recorded as Common units subject to rescission or redemption on the Consolidated balance sheet. The Company classified these 1.6 million common units outside equity because the potential rescission rights of the units are not within the control of the Company.