PARTNERS' EQUITY

12 Months Ended

Dec. 31, 2011

PARTNERS' EQUITY

PARTNERS' EQUITY

NOTE 7    PARTNERS' EQUITY

At December 31, 2011, Partners' equity included 53,472,766 common units (2010 – 46,227,766 common units) representing an aggregate 98 percent limited partner interest in the Partnership (including 5,797,106 common units held by the General Partner and 11,287,725 common units held indirectly by TransCanada) and an aggregate two percent general partner interest. In aggregate, the General Partner's interests represent an effective 12.6 percent ownership in the Partnership at December 31, 2011 (2010 – 14.3 percent).

On May 3, 2011, the Partnership completed a public offering of 7,245,000 common units at $47.58 per common unit for gross proceeds of $344.7 million and net proceeds of $330.9 after unit issuance costs. The General Partner maintained its effective two percent general partner interest in the Partnership by contributing $6.7 million to the Partnership in connection with the offering. See Note 5 for additional information regarding the equity issuance in connection with the Acquisitions.

On November 18, 2009, the Partnership completed a public offering of 5,000,000 common units at $38.00 per common unit for gross proceeds of $190.0 million and net proceeds of $181.8 million after unit issuance costs. The General Partner maintained its effective two percent general partner interest in the Partnership by contributing $3.8 million to the Partnership in connection with the offering. See Note 5 for disclosure regarding the equity issuance in connection with the acquisition of North Baja in 2009.