NET INCOME PER COMMON UNIT

12 Months Ended

Dec. 31, 2013

NET INCOME PER COMMON UNIT

NET INCOME PER COMMON UNIT

NOTE 12    NET INCOME PER COMMON UNIT

Net income per common unit is computed by dividing net income attributable to controlling interests, after deduction of the General Partner's allocation and net income attributed to GTN's and Bison's former parent, by the weighted average number of common units outstanding. The General Partner's allocation is equal to an amount based upon the General Partner's effective two percent general partner interest, plus an amount equal to incentive distributions. Incentive distributions are paid to the General Partner if quarterly cash distributions on the common units exceed levels specified in the Partnership Agreement.

Net income per common unit was determined as follows:

(millions of dollars, except per common unit amounts)	2013(a)		2012(a)		2011(a)
Net income	191		229		250
Net income attributed to GTN's and Bison's former parent	(26	)	(55	)	(59	)
Net income attributable to non-controlling interests	(36	)	(37	)	(34	)
Net income allocated to partners(b)	129		137		157
Net income allocated to General Partner	3		3		3
Net income allocable to common units	126		134		154
Weighted average common units outstanding (millions) – basic and diluted	58.9		53.5		51.1
Net income per common unit – basic and diluted	$2.13		$2.51		$3.02

^(a)

Recast as discussed in Note 2 and Note 6.

^(b)

Net income allocated to partners excludes net income attributed to GTN's and Bison's former parent as it was allocated to TransCanada and was not allocable to either the general partner or common units.