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 the year ended December 31, 2014 (2013 and 2012 – $3 million).

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, 2014, 2013 and 2012 by TransCanada's subsidiaries and amounts payable to TransCanada's subsidiaries at December 31, 2014 and 2013 are summarized in the following tables:

Year ended December 31 (millions of dollars)		2014	2013	2012

Capital and operating costs charged by TransCanada's subsidiaries to:
	GTN(a)(b)	30	28	29
	Northern Border(a)	35	30	31
	Bison(a)(b)(c)	6	5	6
	Great Lakes(a)	30	31	33
	North Baja	5	4	4
	Tuscarora	4	4	4
Impact on the Partnership's net income attributable to controlling interests:
	GTN(b)	19	19	19
	Northern Border	16	14	14
	Bison(b)(c)	4	4	4
	Great Lakes	13	14	15
	North Baja	4	4	4
	Tuscarora	4	4	4

December 31 (millions of dollars)		2014	2013

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

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

Great Lakes' earns transportation revenues from TransCanada and its affiliates under contracts, some of which are provided at discounted rates and some at maximum recourse rates. Great Lakes earned $71 million of transportation revenues under these contracts in 2014 (2013 – $68 million; 2012 – $77 million). This amount represents 49 percent of total revenues earned by Great Lakes in 2014 (2013 – 55 percent; 2012 – 42 percent). Great Lakes also earned $2 million in affiliated rental revenue in 2014 (2013 and 2012 – $1 million).

Revenue from TransCanada and its affiliates of $34 million is included in the Partnership's equity earnings from Great Lakes in 2014 (2013 – $32 million; 2012 – $36 million). At December 31, 2014, $15 million was included in Great Lakes' receivables in regards to the transportation contracts with TransCanada and its affiliates (2013 – $11 million).

Effective November 1, 2014, Great Lakes executed contracts with its affiliate, ANR Pipeline Company (ANR) to provide seasonal firm service between 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 January 2, 2015, Great Lakes submitted a request for rehearing and clarification with FERC. On February 2, 2015 FERC issued an Order granting rehearing to allow for additional time for FERC to consider the request. Until Great Lakes obtains clarification from FERC or a settlement is reached and approved, it is providing service to ANR under multiple service agreements and rates. Great Lakes has deferred $9.4 million of revenue under such agreements that may not be collected.

At December 31, 2013, the Partnership accrued $25 million of additional consideration in accordance with the 2013 Acquisition with respect to Carty Lateral. This amount was payable to a subsidiary of TransCanada and was included in accounts payable to affiliates as of December 31, 2013 (refer to Note 6). This amount was paid in full in April 2014.

Bison's former parent made an equity contribution to Bison of $18 million in the second quarter of 2013. This amount represents the former parent'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, 2014 and 2013, GTN and Bison did not have any demand loan receivable from an affiliate or a demand loan payable to an affiliate.