NET INCOME PER COMMON UNIT

3 Months Ended

Mar. 31, 2013

NET INCOME PER COMMON UNIT

NET INCOME PER COMMON UNIT

NOTE 6        NET INCOME PER COMMON UNIT

Net income per common unit is computed by dividing net income, after deduction of TC PipeLines, GP Inc.’s (General Partner) allocation, 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:

	Three months ended
(unaudited)	March 31,
(millions of dollars, except per unit)	2013		2012
Net income	29		39
Net income allocated to General Partner	(1	)	(1	)
Net income allocable to common units	28		38
Weighted average common units outstanding (millions) – basic and diluted	53.5		53.5
Net income per common unit – basic and diluted	$0.52		$0.71