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INVESTMENTS IN UNCONSOLIDATED AFFILIATES
9 Months Ended
Sep. 30, 2014
INVESTMENTS IN UNCONSOLIDATED AFFILIATES  
INVESTMENTS IN UNCONSOLIDATED AFFILIATES

NOTE 4INVESTMENTS IN UNCONSOLIDATED AFFILIATES

 

Northern Border and Great Lakes are regulated by FERC and are operated by TransCanada. The Partnership uses the equity method of accounting for its interests in its equity investees.

 

 

 

 

 

 

Equity Earnings (Loss) from

 

Investments in

 

 

 

Ownership

 

Unconsolidated Affiliates

 

Unconsolidated Affiliates

 

 

 

Interest at

 

Three months

 

Nine Months

 

 

 

 

 

(unaudited)

 

September

 

ended September 30,

 

ended September 30,

 

September

 

December

 

 

 

30,

 

 

 

 

 

 

 

 

 

  30,

 

  31,

 

(millions of dollars)

 

2014 

 

2014

 

2013

 

2014

 

2013

 

2014

 

2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Northern Border (a)

 

50% 

 

14 

 

17 

 

53 

 

48 

 

508 

 

523 

 

Great Lakes

 

46.45% 

 

 

(2)

 

13 

 

-

 

666 

 

672 

 

 

 

 

 

15 

 

15 

 

66 

 

48 

 

1,174 

 

1,195 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

Equity earnings from Northern Border is net of the 12-year amortization of a $10 million transaction fee paid to the operator of Northern Border at the time of the Partnership’s additional 20 percent interest acquisition in April 2006.

 

Northern Border

 

The Partnership recorded no undistributed earnings from Northern Border for the nine months ended September 30, 2014 and 2013.

 

The summarized financial information for Northern Border is as follows:

 

(unaudited)

 

 

 

 

 

(millions of dollars)

 

September 30, 2014

 

December 31, 2013

 

 

 

 

 

 

ASSETS

 

 

 

 

 

Cash and cash equivalents

 

42

 

27

 

Other current assets

 

32

 

34

 

Plant, property and equipment, net

 

1,173

 

1,197

 

Other assets

 

34

 

33

 

 

 

1,281

 

1,291

 

 

 

 

 

 

 

LIABILITIES AND PARTNERS’ EQUITY

 

 

 

 

 

Current liabilities

 

67

 

51

 

Deferred credits and other

 

22

 

19

 

Long-term debt, including current maturities

 

411

 

411

 

Partners’ equity

 

 

 

 

 

Partners’ capital

 

783

 

812

 

Accumulated other comprehensive loss

 

(2)

 

(2

)

 

 

1,281

 

1,291

 

 

 

 

Three months ended

 

Nine months ended

 

 

 

 

 

(unaudited)

 

September 30,

 

September 30,

 

 

 

 

 

(millions of dollars)

 

2014

 

 

2013

 

 

2014

 

 

2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transmission revenues

 

66

 

 

72

 

 

221

 

 

213

 

Operating expenses

 

(16

)

 

(18

)

 

(50

)

 

(56

)

Depreciation

 

(15

)

 

(15

)

 

(44

)

 

(44

)

Financial charges and other

 

(8

)

 

(6

)

 

(20

)

 

(17

)

Net income

 

27

 

 

33

 

 

107

 

 

96

 

 

Great Lakes

The Partnership made an equity contribution to Great Lakes of $4 million in the first quarter of 2014. This amount represents the Partnership’s 46.45 percent share of a $9 million cash call from Great Lakes to make a scheduled debt repayment.

 

The Partnership recorded no undistributed earnings from Great Lakes for the nine months ended September 30, 2014 and 2013.

 

The summarized financial information for Great Lakes is as follows:

 

 

 

 

 

 

 

(unaudited)

 

 

 

 

 

(millions of dollars)

 

September 30, 2014

 

December 31, 2013

 

 

 

 

 

 

ASSETS

 

 

 

 

 

Current assets

 

46 

 

52 

 

Plant, property and equipment, net

 

752 

 

771 

 

 

 

798 

 

823 

 

 

 

 

 

 

 

LIABILITIES AND PARTNERS’ EQUITY

 

 

 

 

 

Current liabilities

 

26 

 

28 

 

Long-term debt, including current maturities

 

326 

 

335 

 

Partners’ equity

 

446 

 

460 

 

 

 

798 

 

823 

 

 

 

 

 

Three months ended

 

Nine months ended

 

 

 

 

 

(unaudited)

 

September 30,

 

September 30,

 

 

 

 

 

(millions of dollars)

 

2014

 

 

2013

 

2014

 

 

2013

 

 

 

 

 

 

 

 

 

 

 

 

 

Transmission revenues

 

29

 

 

26

 

 

106

 

 

90

 

Operating expenses

 

(14

)

 

(15

)

 

(38

)

 

(45

)

Depreciation

 

(7

)

 

(8

)

 

(21

)

 

(24

)

Financial charges and other

 

(6

)

 

(6

)

 

(19

)

 

(20

)

Net income(loss)

 

2

 

 

(3

)

 

28

 

 

1