SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
Sep. 30, 2014
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES	NOTE 2SIGNIFICANT ACCOUNTING POLICIES The accompanying financial statements and related notes have been prepared in accordance with United States generally accepted accounting principles (GAAP) and amounts are stated in U.S. dollars. The results of operations for the three and nine months ended September 30, 2014 and 2013 are not necessarily indicative of the results that may be expected for a full fiscal year. The accompanying financial statements should be read in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2013. That report contains a more comprehensive summary of the Partnership’s major accounting policies. In the opinion of management, the accompanying financial statements contain all of the appropriate adjustments, all of which are normally recurring adjustments unless otherwise noted, considered necessary to present fairly the financial position of the Partnership, the results of operation and cash flows for the respective periods. Our significant accounting policies are consistent with those disclosed in Note 2 of the financial statements in our Annual Report on Form 10-K for the year ended December 31, 2013. Certain items from that Note are repeated or updated below as necessary to assist in understanding the accompanying financial statements. (a) Basis of Presentation Entities acquired from TransCanada and its affiliates are accounted for as transactions between entities under common control, similar to pooling of interests, whereby the assets and liabilities of entities acquired are recorded at TransCanada’s carrying value and any excess purchase price paid are recorded as a reduction in Partners’ Equity. To the extent that such transactions require the Partnership’s historical financial information to be recast, we will present the transaction as if it had occurred at the beginning of the earliest period presented and any historical net equity amounts prior to the transaction date are reflected in the account of TransCanada as the former parent. However, in calculating the Net income per common unit, net income or loss of the entities acquired prior to the transaction will be reflected in the account of TransCanada. Therefore, any historical net income per common unit amounts will not be recast. The Partnership consolidates its investments in GTN, Bison, North Baja and Tuscarora, over which it is able to exercise control. To the extent there are interests owned by other parties, these interests are included in non-controlling interests. The Partnership uses the equity method of accounting for its investments in Northern Border and Great Lakes, over which it is able to exercise significant influence. On July 1, 2013, the Partnership acquired an additional 45 percent membership interest in each of GTN and Bison (the 2013 Acquisition) from subsidiaries of TransCanada which resulted in a 70 percent ownership in each of GTN and Bison. Partnership’s historical financial information, except net income attributable to controlling interest allocation and net income per common unit amounts, was recast to consolidate GTN and Bison for all periods presented. See also Note 7. (b) Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Although management believes these estimates are reasonable, actual results could differ from these estimates.

NOTE 2SIGNIFICANT ACCOUNTING POLICIES

The accompanying financial statements and related notes have been prepared in accordance with United States generally accepted accounting principles (GAAP) and amounts are stated in U.S. dollars. The results of operations for the three and nine months ended September 30, 2014 and 2013 are not necessarily indicative of the results that may be expected for a full fiscal year. The accompanying financial statements should be read in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2013. That report contains a more comprehensive summary of the Partnership’s major accounting policies. In the opinion of management, the accompanying financial statements contain all of the appropriate adjustments, all of which are normally recurring adjustments unless otherwise noted, considered necessary to present fairly the financial position of the Partnership, the results of operation and cash flows for the respective periods. Our significant accounting policies are consistent with those disclosed in Note 2 of the financial statements in our Annual Report on Form 10-K for the year ended December 31, 2013. Certain items from that Note are repeated or updated below as necessary to assist in understanding the accompanying financial statements.

(a) Basis of Presentation

Entities acquired from TransCanada and its affiliates are accounted for as transactions between entities under common control, similar to pooling of interests, whereby the assets and liabilities of entities acquired are recorded at TransCanada’s carrying value and any excess purchase price paid are recorded as a reduction in Partners’ Equity. To the extent that such transactions require the Partnership’s historical financial information to be recast, we will present the transaction as if it had occurred at the beginning of the earliest period presented and any historical net equity amounts prior to the transaction date are reflected in the account of TransCanada as the former parent. However, in calculating the Net income per common unit, net income or loss of the entities acquired prior to the transaction will be reflected in the account of TransCanada. Therefore, any historical net income per common unit amounts will not be recast.

The Partnership consolidates its investments in GTN, Bison, North Baja and Tuscarora, over which it is able to exercise control. To the extent there are interests owned by other parties, these interests are included in non-controlling interests. The Partnership uses the equity method of accounting for its investments in Northern Border and Great Lakes, over which it is able to exercise significant influence.

On July 1, 2013, the Partnership acquired an additional 45 percent membership interest in each of GTN and Bison (the 2013 Acquisition) from subsidiaries of TransCanada which resulted in a 70 percent ownership in each of GTN and Bison. Partnership’s historical financial information, except net income attributable to controlling interest allocation and net income per common unit amounts, was recast to consolidate GTN and Bison for all periods presented. See also Note 7.

(b) Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Although management believes these estimates are reasonable, actual results could differ from these estimates.