NET INCOME PER COMMON UNIT

6 Months Ended

Jun. 30, 2014

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 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:

	Three months ended		Six months ended
(unaudited)	June 30,		June 30,
(millions of dollars, except per common unit amounts)	2014	2013(a)	2014	2013(a)
Net income	45	42	112	95
Net income attributed to GTN’s and Bison’s former parent	-	(11)	-	(26)
Net income attributable to non-controlling interests	(8)	(8)	(18)	(17)
Net income allocated to partners(b)	37	23	94	52
Net income allocated to General Partner	(1)	-	(2)	(1)
Net income allocable to common units	36	23	92	51
Weighted average common units outstanding (millions) – basic and diluted	62.3	57.4	62.3	55.4
Net income per common unit – basic and diluted	$0.58	$0.40	$1.48	$0.92

(a) Recast as discussed in Note 2.

(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.