The Partnership has equity interests in Northern Border, Great Lakes and Iroquois. The pipeline systems owned by these entities are regulated by the Federal Energy Regulatory Commission (FERC). The Northern Border and Great Lakes pipeline systems are operated by subsidiaries of TC Energy. The Iroquois pipeline system is operated by Iroquois Pipeline Operating Company, a wholly owned subsidiary of Iroquois. The Partnership uses the equity method of accounting for its interests in its equity investees.


	Ownership	Equity Earnings				Equity Investments
	Interest at	Three months ended		Nine months ended
(unaudited)	September 30,	September 30,		September 30,		September 30,	December 31,
(millions of dollars)	2020	2020	2019	2020	2019	2020	2019
Northern Border	50.00%	22	15	57	50	412	422
Great Lakes	46.45%	10	8	39	37	487	491
Iroquois	49.34%	7	8	27	28	152	185
		39	31	123	115	1,051	1,098

Distributions received from equity investments in the three and nine months ended September 30, 2020 totaled $70 million and $190 million, respectively (September 30, 2019 - $59 million and $226 million, respectively).

During the nine months ended September 30, 2020, $29 million of the total $190 million distributions received from equity investments (September 30, 2019 - $58 million) was considered return of capital and included in "Investing Activities" in the Partnership’s consolidated statement of cash flows. The return of capital was related to our investment in Iroquois (see further discussion below).

During the three and nine months ended September 30, 2020, the Partnership received distributions from Northern Border amounting to $22 million and $68 million, respectively (September 30, 2019 - $21 million and $121 million, respectively).

The Partnership did not have undistributed earnings from Northern Border for the three and nine months ended September 30, 2020 and 2019.


(unaudited)
(millions of dollars)	September 30, 2020	December 31, 2019
ASSETS
Cash and cash equivalents	40	21
Other current assets	39	37
Property, plant and equipment, net	979	989
Other assets	12	12
	1,070	1,059
LIABILITIES AND PARTNERS’ EQUITY
Current liabilities	58	42
Deferred credits and other	40	39
Long-term debt, net (a)	378	364
Partners’ equity
Partners’ capital	594	615
Accumulated other comprehensive loss	—	(1)
	1,070	1,059


	Three months ended		Nine months ended
(unaudited)	September 30,		September 30,
(millions of dollars)	2020	2019	2020	2019
Transmission revenues	83	73	232	221
Operating expenses	(19)	(21)	(58)	(61)
Depreciation	(16)	(15)	(47)	(46)
Financial charges and other	(4)	(5)	(13)	(13)
Net income	44	32	114	101

(a) Includes current maturities of $250 million as of September 30, 2020 for Northern Border's 7.50% Senior Notes (December 31, 2019 - nil), net of unamortized debt issuance costs and debt discounts. At September 30, 2020, Northern Border was in compliance with all of its financial covenants.

The Partnership is considered to have a variable interest in Great Lakes, which is accounted for as an equity investment as we are not its primary beneficiary. A variable interest entity is a legal entity that either does not have sufficient equity at risk to finance its activities without additional subordinated financial support, is structured such that equity investors lack the ability to make significant decisions relating to the entity’s operations through voting rights or do not substantively participate in the gains or losses of the entity.

The Partnership made an equity contribution to Great Lakes of $5 million during the nine months ended September 30, 2020 (September 30, 2019 - $5 million). This amount represents the Partnership’s 46.45 percent share of an $11 million cash call from Great Lakes to make a scheduled debt repayment.

During the three and nine months ended September 30, 2020, the Partnership received distributions from Great Lakes amounting to $11 million and $48 million, respectively (September 30, 2019 - $9 million and $48 million, respectively).

The Partnership did not have undistributed earnings from Great Lakes for the three and nine months ended September 30, 2020 and 2019.


(unaudited)
(millions of dollars)	September 30, 2020	December 31, 2019
ASSETS
Current assets	27	72
Property, plant and equipment, net	710	685
	737	757
LIABILITIES AND PARTNERS’ EQUITY
Current liabilities	31	33
Net long-term debt, including current maturities (a)	208	219
Other long term liabilities	8	6
Partners’ equity	490	499
	737	757


	Three months ended		Nine months ended
(unaudited)	September 30,		September 30,
(millions of dollars)	2020	2019	2020	2019
Transmission revenues	50	51	172	174
Operating expenses	(18)	(23)	(53)	(58)
Depreciation	(8)	(8)	(24)	(24)
Financial charges and other	(4)	(3)	(11)	(12)
Net income	20	17	84	80

(a) Includes current maturities of $31 million as of September 30, 2020 (December 31, 2019 - $21 million). At September 30, 2020, Great Lakes was in compliance with all of its financial covenants.

During the three and nine months ended September 30, 2020, the Partnership received total distributions from Iroquois amounting to $37 million and $74 million, respectively (September 30, 2019 - $28 million and $56 million, respectively), which includes the Partnership’s 49.34 percent share of the Iroquois unrestricted cash distribution amounting to approximately nil and $5.2 million, respectively (September 30, 2019 - $2.6 million and $7.8 million, respectively).

Also included in the $37 million and $74 million is the Partnership's receipt of (a) a $24 million one-time, non-recurring distribution from Iroquois, representing our 49.34 percent of the reimbursement proceeds received by Iroquois from a terminated project that was guaranteed by the customer and (b) an additional $2 million distribution representing our 49.34 percent of the excess cash generated by Iroquois' operating activities in 2020.

The 2020 unrestricted cash of $5.2 million (2019 - $7.8 million) and the $24 million non-recurring distributions do not represent a distribution of Iroquois’ cash from operations during the period and therefore were reported as a return of investment in the Partnership’s consolidated statement of cash flows.

The Partnership did not have undistributed earnings from Iroquois for the three and nine months ended September 30, 2020 and 2019.


(unaudited)
(millions of dollars)	September 30, 2020	December 31, 2019
ASSETS
Cash and cash equivalents	26	43
Other current assets	32	36
Property, plant and equipment, net	509	570
Other assets	19	16
	586	665
LIABILITIES AND PARTNERS’ EQUITY
Current liabilities	21	34
Long-term debt, net (a)	316	317
Other non-current liabilities	22	20
Partners’ equity	227	294
	586	665


	Three months ended		Nine months ended
(unaudited)	September 30,		September 30,
(millions of dollars)	2020	2019	2020	2019
Transmission revenues	40	39	133	131
Operating expenses	(15)	(15)	(44)	(43)
Depreciation	(7)	(7)	(22)	(22)
Financial charges and other	(3)	(2)	(12)	(9)
Net income	15	15	55	57

(a) Includes current maturities of $4 million as of September 30, 2020 (December 31, 2019 - $3 million). At September 30, 2020, Iroquois was in compliance with all of its financial covenants.