EQUITY INVESTMENTS (Tables)

9 Months Ended

Sep. 30, 2016

Schedule of equity investments and summarized financial information for equity investees

	Ownership		Equity Earnings from Unconsolidated Affiliates				Investments in Unconsolidated Affiliates
	Interest at		Three months		Nine Months
(unaudited)	September 30,		ended September 30,		ended September 30,		September 30,	December 31,
(millions of dollars)	2016		2016	2015	2016	2015	2016	2015

Northern Border (a)	50	%	18	16	52	50	449	480
Great Lakes	46.45	%	4	1	23	13	470	485
PNGTS (b)	49.90	%	2	—	13	—	123	—

			24	17	88	63	1,042	965

^(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.

^(b)

On January 1, 2016, the Partnership acquired a 49.9 percent interest in PNGTS (Refer to Note 6). For the three and nine months ended September 30, 2016, the Partnership recorded no undistributed earnings from PNGTS.

Northern Border

EQUITY INVESTMENTS

Schedule of equity investments and summarized financial information for equity investees

(unaudited)
(millions of dollars)	September 30, 2016		December 31, 2015

ASSETS
Cash and cash equivalents	17		27
Other current assets	35		33
Plant, property and equipment, net	1,100		1,124
Other assets (a)	15		16

	1,167		1,200


LIABILITIES AND PARTNERS’ EQUITY
Current liabilities	43		39
Deferred credits and other	28		26
Long-term debt, net (a), (b)	430		409
Partners’ equity
Partners’ capital	668		728
Accumulated other comprehensive loss	(2	)	(2	)

	1,167		1,200

^(a)

As a result of the application of ASU No. 2015-03 and similar to the presentation of debt discounts, debt issuance costs of $2 million at December 31, 2015 previously reported as other assets in the balance sheet were reclassified as an offset against their respective debt liabilities.

^(b)

Includes current maturities of $100 million senior notes at December 31, 2015. During August 2016, the $100 million senior notes were refinanced with a draw on Northern Border’s $200 million revolving credit agreement that expires in 2020.

	Three months ended				Nine months ended
(unaudited)	September 30,				September 30,
(millions of dollars)	2016		2015		2016		2015

Transmission revenues	74		71		218		215
Operating expenses	(18	)	(17	)	(53	)	(51	)
Depreciation	(15	)	(16	)	(44	)	(45	)
Financial charges and other	(5	)	(6	)	(16	)	(17	)

Net income	36		32		105		102

Great Lakes

EQUITY INVESTMENTS

Schedule of equity investments and summarized financial information for equity investees

(unaudited)
(millions of dollars)	September 30, 2016	December 31, 2015

ASSETS
Current assets	48	86
Plant, property and equipment, net	718	727

	766	813


LIABILITIES AND PARTNERS’ EQUITY
Current liabilities	25	31
Long-term debt, net (a), (b)	288	297
Partners’ equity	453	485

	766	813

^(a)

The application of ASU No. 2015-03 did not have a material effect on Great Lakes’ financial statements.

^(b)

Includes current maturities of $19 million as of September 30, 2016 (December 31, 2015 - $19 million).

	Three months ended				Nine months ended
(unaudited)	September 30,				September 30,
(millions of dollars)	2016		2015		2016		2015

Transmission revenues	36		29		133		105
Operating expenses	(15	)	(15	)	(45	)	(40	)
Depreciation	(7	)	(7	)	(21	)	(21	)
Financial charges and other	(6	)	(5	)	(17	)	(17	)

Net income	8		2		50		27