Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 1-May-15 | |
Document and Entity Information | ||
Entity Registrant Name | TC PIPELINES LP | |
Entity Central Index Key | 1075607 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 63,820,547 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CONSOLIDATED STATEMENTS OF INCOME | ||
Transmission revenues | $87 | $87 |
Equity earnings from unconsolidated affiliates (Note 4) | 31 | 33 |
Operation and maintenance expenses | -11 | -12 |
Property taxes | -6 | -6 |
General and administrative | -3 | -2 |
Depreciation | -21 | -21 |
Financial charges and other | -13 | -12 |
Net income | 64 | 67 |
Net income attributable to non-controlling interests | 7 | 10 |
Net income attributable to controlling interests | 57 | 57 |
Net income attributable to controlling interests allocation (Note 7) | ||
Common units | 56 | 56 |
General Partner | 1 | 1 |
Net income allocated to partners | $57 | $57 |
Net income per common unit (Note 7) - basic (in dollars per unit) | $0.88 | $0.90 |
Net income per common unit (Note 7) - diluted (in dollars per unit) | $0.88 | $0.90 |
Weighted average common units outstanding (millions) - basic (in units) | 63.6 | 62.3 |
Weighted average common units outstanding (millions) - diluted (in units) | 63.6 | 62.3 |
Common units outstanding, end of period (millions) (in units) | 63.6 | 62.3 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net income | $64 | $67 |
Other comprehensive income | ||
Reclassification to net income of gains and losses on cash flow hedges (Note 11) | -1 | |
Other comprehensive income | -1 | |
Total comprehensive income | 63 | 67 |
Comprehensive income attributable to non-controlling interests | 7 | 10 |
Comprehensive income attributable to controlling interests | $56 | $57 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Current Assets | ||
Cash and cash equivalents | $384 | $26 |
Accounts receivable and other (Note 12) | 35 | 35 |
Inventories | 8 | 7 |
Total current assets | 427 | 68 |
Investments in unconsolidated affiliates (Note 4) | 1,183 | 1,177 |
Plant, property and equipment (Net of $757 accumulated depreciation; 2014 - $737 | 1,950 | 1,968 |
Goodwill | 130 | 130 |
Other assets | 8 | 6 |
Total assets | 3,698 | 3,349 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 27 | 23 |
Accounts payable to affiliates (Note 10) | 8 | 15 |
Accrued interest | 13 | 4 |
Short-term loan (Note 5) | 170 | 170 |
Current portion of long-term debt (Note 5) | 79 | 79 |
Total current liabilities | 297 | 291 |
Long-term debt (Note 5) | 1,785 | 1,446 |
Other liabilities | 27 | 26 |
Total liabilities | 2,109 | 1,763 |
Partners' Equity | ||
Common units | 1,331 | 1,325 |
General partner | 29 | 29 |
Accumulated other comprehensive loss | -3 | -2 |
Controlling interests | 1,357 | 1,352 |
Non-controlling interests | 232 | 234 |
Total partners' equity | 1,589 | 1,586 |
Total liabilities and partners' equity | $3,698 | $3,349 |
CONSOLIDATED_BALANCE_SHEET_Par
CONSOLIDATED BALANCE SHEET (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ||
Accumulated depreciation | $757 | $737 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash Generated From Operations | ||
Net income | $64 | $67 |
Depreciation | 21 | 21 |
Amortization of debt issue costs | 1 | |
Accruals for costs related to the 2015 Acquisition (Note 13) | 2 | |
Change in operating working capital (Note 9) | 3 | 16 |
Total cash generated from operations | 87 | 97 |
Investing Activities | ||
Capital expenditures | -3 | -2 |
Total investing activities | -5 | -6 |
Financing Activities | ||
Distributions paid (Note 8) | -55 | -52 |
Distributions paid to non-controlling interests | -9 | -13 |
Long-term debt issued, net of discount | 349 | |
Long-term debt repaid | -10 | -10 |
Debt issuance costs | -2 | |
Total financing activities | 276 | -75 |
Increase/(decrease) in cash and cash equivalents | 358 | 16 |
Cash and cash equivalents, beginning of period | 26 | 25 |
Cash and cash equivalents, end of period | 384 | 41 |
ATM Equity Issuance Program | ||
Financing Activities | ||
Equity issuance, net (Note 6) | 3 | |
Northern Border | ||
Cash Generated From Operations | ||
Equity earnings in excess of cumulative distributions | -2 | |
Investing Activities | ||
Cumulative distributions in excess of equity earnings | 2 | |
Great Lakes | ||
Cash Generated From Operations | ||
Equity earnings in excess of cumulative distributions | -4 | -5 |
Investing Activities | ||
Investment | ($4) | ($4) |
CONSOLIDATED_STATEMENT_OF_CHAN
CONSOLIDATED STATEMENT OF CHANGES IN PARTNERS' EQUITY (USD $) | Common Units (Limited Partners) | Common Units (Limited Partners) | General Partner | Accumulated Other Comprehensive Loss | Non-controlling interests | ATM Equity Issuance Program | Total | |
In Millions, unless otherwise specified | ATM Equity Issuance Program | |||||||
Partners' Equity at beginning of year at Dec. 31, 2014 | $1,325 | $29 | ($2) | $234 | $1,586 | |||
Partners' Equity at beginning of year (in units) at Dec. 31, 2014 | 63.6 | |||||||
Increase (Decrease) in Partners' Equity | ||||||||
Net income | 56 | 1 | 7 | 64 | ||||
Other comprehensive loss | -1 | -1 | ||||||
Equity issuance, net (Note 6) | 3 | 3 | ||||||
Distributions paid | -53 | -1 | -9 | -63 | ||||
Partners' Equity at end of year at Mar. 31, 2015 | $1,331 | $29 | ($3) | [1] | $232 | $1,589 | ||
Partners' Equity at End of Year (in units) at Mar. 31, 2015 | 63.6 | |||||||
[1] | Losses related to cash flow hedges reported in Accumulated Other Comprehensive Loss and expected to be reclassified to Net Income in the next 12 months are estimated to be $1 million. These estimates assume constant interest rates over time; however, the amounts reclassified will vary based on actual value of interest rates at the date of settlement. |
CONSOLIDATED_STATEMENT_OF_CHAN1
CONSOLIDATED STATEMENT OF CHANGES IN PARTNERS' EQUITY (Parenthetical) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Losses related to cash flow hedges reported in Accumulated Other Comprehensive Loss | |
Losses expected to be reclassified to net income in the next 12 months | $1 |
ORGANIZATION
ORGANIZATION | 3 Months Ended |
Mar. 31, 2015 | |
ORGANIZATION | |
ORGANIZATION | |
NOTE 1ORGANIZATION | |
TC PipeLines, LP and its subsidiaries are collectively referred to herein as the Partnership. The Partnership was formed by TransCanada PipeLines Limited, a wholly-owned subsidiary of TransCanada Corporation (TransCanada Corporation together with its subsidiaries collectively referred to herein as TransCanada), to acquire, own and participate in the management of energy infrastructure assets in North America. | |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2015 | |
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 months ended March 31, 2015 and 2014 are not necessarily indicative of the results that may be expected for the 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, 2014. That report contains a more comprehensive summary of the Partnership’s significant 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, 2014. Certain items from that Note are repeated or updated below as necessary to assist in understanding the accompanying financial statements. | |
(a) Basis of Presentation | |
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. | |
(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. | |
ACCOUNTING_PRONOUNCEMENTS
ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2015 | |
ACCOUNTING PRONOUNCEMENTS | |
ACCOUNTING PRONOUNCEMENTS | |
NOTE 3ACCOUNTING PRONOUNCEMENTS | |
Revenue from contracts with customers | |
In May 2014, the FASB issued new guidance on Revenue from Contracts with Customers (Topic 606). This guidance supersedes the revenue recognition requirements in Topic 605, Revenue Recognition and most industry-specific guidance. This new guidance requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This new guidance is effective from January 1, 2017 with two methods in which the amendment can be applied; (1) retrospectively to each prior reporting period presented, or (2) retrospectively with the cumulative effect recognized at the date of initial application. On April 1, 2015, the FASB proposed deferring the effective date by one year to December 15, 2017 for annual reporting periods beginning after that date. The FASB also proposed permitting early adoption of the standard, but not before the original effective date of December 15, 2016. The Partnership is currently evaluating the impact of the adoption of this Accounting Standards Update (ASU) and has not yet determined the effect on its consolidated financial statements. | |
Consolidation | |
In February 2015, the FASB issued an amendment of previously issued guidance on consolidation (Topic 810). This updated guidance requires that an entity evaluate whether it should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. This guidance is effective from January 1, 2016 and early application is permitted. Application of this amendment could be performed using a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption. Alternatively, the amendment could be applied retrospectively. The Partnership is currently evaluating the impact of the adoption of this ASU and has not yet determined the effect on its consolidated financial statements. | |
Imputation of interest | |
In April 2015, the FASB issued an amendment of previously issued guidance on imputation of interest (Subtopic 835-30). This updated guidance requires debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of debt liabilities, consistent with debt discount or premiums. The recognition and measurement for debt issuance costs would not be affected. This guidance is effective from January 1, 2016 and early application is permitted. This guidance should be adopted on a retrospective basis, wherein the balance sheet of each individual period presented would be adjusted to reflect the period-specific effects of applying the new guidance. The application of this amendment will result in a reclassification of debt issuance costs currently recorded in Other Assets to an offset of their respective debt liabilities. | |
INVESTMENTS_IN_UNCONSOLIDATED_
INVESTMENTS IN UNCONSOLIDATED AFFILIATES | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
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. | |||||||||||
Ownership | Equity Earnings from | Investments in | |||||||||
Unconsolidated Affiliates | Unconsolidated Affiliates | ||||||||||
Interest at | Three months | ||||||||||
(unaudited) | March 31, | ended March 31, | March 31, | December 31, | |||||||
(millions of dollars) | 2015 | 2015 | 2014 | 2015 | 2014 | ||||||
Northern Border(a) | 50% | 20 | 23 | 503 | 505 | ||||||
Great Lakes | 46.45% | 11 | 10 | 680 | 672 | ||||||
31 | 33 | 1,183 | 1,177 | ||||||||
(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 three months ended March 31, 2015 and 2014. | |||||||||||
The summarized financial information for Northern Border is as follows: | |||||||||||
(unaudited) | |||||||||||
(millions of dollars) | March 31, 2015 | December 31, 2014 | |||||||||
ASSETS | |||||||||||
Cash and cash equivalents | 51 | 41 | |||||||||
Other current assets | 36 | 34 | |||||||||
Plant, property and equipment, net | 1,150 | 1,163 | |||||||||
Other assets | 33 | 34 | |||||||||
1,270 | 1,272 | ||||||||||
LIABILITIES AND PARTNERS’ EQUITY | |||||||||||
Current liabilities | 65 | 64 | |||||||||
Deferred credits and other | 23 | 22 | |||||||||
Long-term debt, including current maturities | 411 | 411 | |||||||||
Partners’ equity | |||||||||||
Partners’ capital | 773 | 777 | |||||||||
Accumulated other comprehensive loss | (2 | ) | (2 | ) | |||||||
1,270 | 1,272 | ||||||||||
Three months ended | |||||||||||
(unaudited) | March 31, | ||||||||||
(millions of dollars) | 2015 | 2014 | |||||||||
Transmission revenues | 75 | 86 | |||||||||
Operating expenses | (16 | ) | (18 | ) | |||||||
Depreciation | (15 | ) | (15 | ) | |||||||
Financial charges and other | (5 | ) | (6 | ) | |||||||
Net income | 39 | 47 | |||||||||
Great Lakes | |||||||||||
The Partnership made an equity contribution to Great Lakes of $4 million in the first quarter of 2015. 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 three months ended March 31, 2015 and 2014. | |||||||||||
The summarized financial information for Great Lakes is as follows: | |||||||||||
(unaudited) | |||||||||||
(millions of dollars) | March 31, 2015 | December 31, 2014 | |||||||||
ASSETS | |||||||||||
Current assets | 88 | 66 | |||||||||
Plant, property and equipment, net | 741 | 748 | |||||||||
829 | 814 | ||||||||||
LIABILITIES AND PARTNERS’ EQUITY | |||||||||||
Current liabilities | 45 | 38 | |||||||||
Long-term debt, including current maturities | 307 | 316 | |||||||||
Partners’ equity | 477 | 460 | |||||||||
829 | 814 | ||||||||||
Three months ended | |||||||||||
(unaudited) | March 31, | ||||||||||
(millions of dollars) | 2015 | 2014 | |||||||||
Transmission revenues | 48 | 48 | |||||||||
Operating expenses | (11 | ) | (12 | ) | |||||||
Depreciation | (7 | ) | (7 | ) | |||||||
Financial charges and other | (6 | ) | (7 | ) | |||||||
Net income | 24 | 22 | |||||||||
CREDIT_FACILITIES_SHORTTERM_LO
CREDIT FACILITIES, SHORT-TERM LOAN FACILITY AND LONG-TERM DEBT | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
CREDIT FACILITIES, SHORT-TERM LOAN FACILITY AND LONG-TERM DEBT | |||||||
CREDIT FACILITIES, SHORT-TERM LOAN FACILITY AND LONG-TERM DEBT | |||||||
NOTE 5CREDIT FACILITIES, SHORT-TERM LOAN FACILITY AND LONG-TERM DEBT | |||||||
(unaudited) | |||||||
(millions of dollars) | March 31, 2015 | December 31, 2014 | |||||
Senior Credit Facility due 2017 | 320 | 330 | |||||
Term Loan Facility due 2018 | 500 | 500 | |||||
Short-Term Loan Facility due 2015 | 170 | 170 | |||||
4.65% Unsecured Senior Notes due 2021, net of discount | 350 | 350 | |||||
(2015 and 2014 – nil) | |||||||
4.375% Unsecured Senior Notes due 2025, net of $1 million discount | 349 | - | |||||
5.09% Unsecured Senior Notes due 2015 | 75 | 75 | |||||
5.29% Unsecured Senior Notes due 2020 | 100 | 100 | |||||
5.69% Unsecured Senior Notes due 2035 | 150 | 150 | |||||
3.82% Series D Senior Notes due 2017 | 20 | 20 | |||||
2,034 | 1,695 | ||||||
Less: current portion | 249 | 249 | |||||
1,785 | 1,446 | ||||||
The Partnership’s Senior Credit Facility consists of a $500 million senior revolving credit facility with a banking syndicate, maturing November 20, 2017, under which $320 million was outstanding at March 31, 2015 (December 31, 2014 - $330 million), leaving $180 million available for future borrowing. | |||||||
The London Interbank Offered Rate (LIBOR) based interest rate on the Senior Credit Facility averaged 1.43 percent for the three months ended March 31, 2015 (2014 – 1.42 percent). The LIBOR-based interest rate was 1.43 percent at March 31, 2015 (December 31, 2014 – 1.41 percent). | |||||||
The LIBOR-based interest rate on the Term Loan Facility due 2018 averaged 1.43 percent for the three months ended March 31, 2015 (2014 – 1.42 percent). After hedging activity, the interest rate incurred on the Term Loan Facility averaged 1.83 percent for three months ended March 31, 2015 (2014 – 1.83 percent). Prior to hedging activities, the LIBOR-based interest rate was 1.43 percent at March 31, 2015 (December 31, 2014 – 1.41 percent). | |||||||
The LIBOR-based interest rate on the Short-Term Loan Facility averaged 1.30 percent for the three months ended March 31, 2015 and was 1.30 percent at March 31, 2015. | |||||||
The Senior Credit Facility, the Term Loan Facilities and Short-Term Loan Facility require the Partnership to maintain a certain leverage ratio (debt to adjusted cash flow [net income plus cash distributions received, extraordinary losses, interest expense, expense for taxes paid or accrued, and depreciation and amortization expense less equity earnings and extraordinary gains]). In the quarter in which an acquisition has occurred, and the two quarters following the acquisition, the allowable leverage ratio increases to 5.50 to 1.00. Thereafter, the ratio returns to 5.00 to 1.00. The allowable ratio for the quarter ended March 31, 2015 is 5.50 to 1.00. The leverage ratio was 5.20 to 1.00 as of March 31, 2015 which included the impact of the issuance of the $350 million senior unsecured notes. As of April 1, 2015, in connection with closing of the 2015 GTN Acquisition, the leverage ratio was reduced to 4.97 to 1.00. | |||||||
On March 13, 2015, the Partnership closed a $350 million public offering of senior unsecured notes bearing an interest rate of 4.375 percent maturing March 13, 2025. The net proceeds of $346 million were used to fund a portion of the acquisition of the remaining 30 percent interest of GTN (2015 GTN Acquisition – refer to Note 13) and to reduce the amount outstanding under our Senior Credit Facility. The indenture for the notes contains customary investment grade covenants. | |||||||
On June 1, 2015, GTN’s 5.09 percent unsecured Senior Notes will mature. As market conditions dictate, GTN intends to refinance all or portion of this debt with either fixed-rate or variable rate debt. GTN’s Senior Notes provisions contain a covenant that limits total debt to no greater than 70 percent of total capitalization. | |||||||
The Series D Senior Notes, which require yearly principal payment until maturity, are secured by Tuscarora’s transportation contracts, supporting agreements and substantially all of Tuscarora’s property. The note purchase agreements contain certain provisions that include, among other items, limitations on additional indebtedness and distributions to partners. | |||||||
At March 31, 2015, the Partnership was in compliance with its financial covenants, in addition to the other covenants which include restrictions on entering into mergers, consolidations and sales of assets, granting liens, material amendments to the Second Amended and Restated Agreement of Limited Partnership (Partnership Agreement), incurring additional debt and distributions to unitholders. | |||||||
The principal repayments required of the Partnership on its debt are as follows: | |||||||
(unaudited) | |||||||
(millions of dollars) | |||||||
2015 | 249 | ||||||
2016 | 4 | ||||||
2017 | 332 | ||||||
2018 | 500 | ||||||
2019 | - | ||||||
2020 | 100 | ||||||
Thereafter | 849 | ||||||
2,034 | |||||||
PARTNERS_EQUITY
PARTNERS' EQUITY | 3 Months Ended |
Mar. 31, 2015 | |
PARTNERS' EQUITY | |
PARTNERS' EQUITY | |
NOTE 6PARTNERS’ EQUITY | |
ATM equity issuance program (ATM program) | |
In August 2014, the Partnership entered into an Equity Distribution Agreement (the EDA) with five different financial institutions (Managers), pursuant to which the Partnership may from time to time, offer and sell common units having an aggregate offering price of up to $200 million. Sales of such common units will be made by means of ordinary brokers’ transactions on the NYSE at market prices, in block transactions or as otherwise agreed upon by one or more of the Managers and the Partnership. | |
During the three months ended March 31, 2015, the Partnership issued 54,701 common units under the ATM program generating net proceeds of approximately $3.4 million, plus approximately $0.1 million from the General Partner to maintain its effective two percent interest. The commissions to our sales agents were approximately $34 thousand. The net proceeds were used for general partnership purposes. | |
NET_INCOME_PER_COMMON_UNIT
NET INCOME PER COMMON UNIT | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
NET INCOME PER COMMON UNIT | |||||
NET INCOME PER COMMON UNIT | |||||
NOTE 7NET 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, 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. For the three months ended March 31, 2015, incentive distributions allocated to the General Partner were $0.3 million. No incentive distributions were allocated to the General Partner for the three months ended March 31, 2014. | |||||
Net income per common unit was determined as follows: | |||||
Three months ended | |||||
(unaudited) | March 31, | ||||
(millions of dollars, except per common unit amounts) | 2015 | 2014 | |||
Net income attributable to controlling interests | 57 | 57 | |||
Net income allocated to General Partner, including incentive distribution rights (IDRs) (a) | 1 | 1 | |||
Net income allocable to common units | 56 | 56 | |||
Weighted average common units outstanding (millions) – basic and diluted (b) | 63.6 | 62.3 | |||
Net income per common unit – basic and diluted | $ | $ | |||
0.88 | 0.90 | ||||
(a) | In the calculation of basic and diluted net income per common unit, the net income allocated to the General Partner includes IDRs pertaining to the current reporting period, but declared and paid in the subsequent period. | ||||
(b) | Under the ATM program, the Partnership has issued 1,288,481 common units. | ||||
CASH_DISTRIBUTIONS
CASH DISTRIBUTIONS | 3 Months Ended |
Mar. 31, 2015 | |
CASH DISTRIBUTIONS | |
CASH DISTRIBUTIONS | |
NOTE 8CASH DISTRIBUTIONS | |
For the three months ended March 31, 2015, the Partnership distributed $0.84 per common unit (2014 – $0.81 per common unit) for a total of $55 million (2014 - $52 million). The distributions paid for the three months ended March 31, 2015 included incentive distribution to the General Partners of approximately $0.3 million. There were no incentive distributions paid to the General Partner for the three months ended March 31, 2014. | |
CHANGE_IN_OPERATING_WORKING_CA
CHANGE IN OPERATING WORKING CAPITAL | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
CHANGE IN OPERATING WORKING CAPITAL | |||||||
CHANGE IN OPERATING WORKING CAPITAL | |||||||
NOTE 9CHANGE IN OPERATING WORKING CAPITAL | |||||||
(unaudited) | Three months ended March 31, | ||||||
(millions of dollars) | 2015 | 2014 | |||||
Change in accounts receivable and other | (1 | ) | 3 | ||||
Change in accounts payable and accrued liabilities | 2 | 4 | |||||
Change in accounts payable to affiliates | (7 | ) | 1 | ||||
Change in accrued interest | 9 | 8 | |||||
Change in operating working capital | 3 | 16 | |||||
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
RELATED PARTY TRANSACTIONS | |||||
RELATED PARTY TRANSACTIONS | |||||
NOTE 10RELATED PARTY TRANSACTIONS | |||||
The Partnership does not have any employees. The management and operating functions are provided by the General Partner. The General Partner does not receive a management fee in connection with its management of the Partnership. The Partnership reimburses the General Partner for all costs of services provided, including the costs of employee, officer and director compensation and benefits, and all other expenses necessary or appropriate to the conduct of the business of, and allocable to, the Partnership. Such costs include (i) overhead costs (such as office space and equipment) and (ii) out-of-pocket expenses related to the provision of such services. The Partnership Agreement provides that the General Partner will determine the costs that are allocable to the Partnership in any reasonable manner determined by the General Partner in its sole discretion. Total costs charged to the Partnership by the General Partner were $1 million for the three months ended March 31, 2015 (2014 – $1 million). | |||||
As operator, TransCanada’s subsidiaries provide capital and operating services to our pipeline systems. TransCanada’s subsidiaries incur costs on behalf of our pipeline systems, including, but not limited to, employee salary and benefit costs, and property and liability insurance costs. | |||||
Capital and operating costs charged to our pipeline systems for the three months ended March 31, 2015 and 2014 by TransCanada’s subsidiaries and amounts payable to TransCanada’s subsidiaries at March 31, 2015 and December 31, 2014 are summarized in the following tables: | |||||
Three months ended | |||||
(unaudited) | March 31, | ||||
(millions of dollars) | 2015 | 2014 | |||
Capital and operating costs charged by TransCanada’s subsidiaries to: | |||||
GTN (a) | 6 | 6 | |||
Northern Border (a) | 7 | 7 | |||
Bison (a) | 1 | 1 | |||
Great Lakes (a) | 6 | 7 | |||
North Baja | 1 | 1 | |||
Tuscarora | 1 | 1 | |||
Impact on the Partnership’s net income attributable to controlling interests: | |||||
GTN | 4 | 4 | |||
Northern Border | 3 | 4 | |||
Bison | 1 | 1 | |||
Great Lakes | 3 | 3 | |||
North Baja | 1 | 1 | |||
Tuscarora | 1 | 1 | |||
(a) | Represents 100 percent of the costs. | ||||
(unaudited) | |||||
(millions of dollars) | March 31, 2015 | December 31, 2014 | |||
Amount payable to TransCanada’s subsidiaries for costs charged in the period by: | |||||
GTN (a) | 5 | 10 | |||
Northern Border (a) | 4 | 10 | |||
Bison | 1 | 2 | |||
Great Lakes (a) | 4 | 9 | |||
North Baja | 1 | 1 | |||
Tuscarora | 1 | 1 | |||
(a) | Represents 100 percent of the costs. | ||||
Great Lakes’ earns transportation revenues from TransCanada and its affiliates under contracts, some of which are provided at discounted rates and some at maximum recourse rates. Great Lakes earned $29 million of transportation revenues under these contracts for the three months ended March 31, 2015 (2014 - $22 million). These amounts represent 61 percent of total revenues earned by Great Lakes for the three months ended March 31, 2015 (2014 – 47 percent). | |||||
Revenue from TransCanada and its affiliates of $14 million is included in the Partnership’s equity earnings from Great Lakes for the three months ended March 31, 2015 (2014 - $11 million). At March 31, 2015, $11 million was included in Great Lakes’ receivables in regards to the transportation contracts with TransCanada and its affiliates (December 31, 2014 - $15 million). | |||||
Effective November 1, 2014, Great Lakes executed contracts with its affiliate, ANR Pipeline Company (ANR) to provide firm service in Michigan and Wisconsin. These contracts were at the maximum FERC authorized rate and were intended to replace historical contracts. On December 3, 2014, the FERC accepted and suspended Great Lakes’ tariff records to become effective May 3, 2015, subject to refund. On January 2, 2015, Great Lakes submitted a request for rehearing and clarification with FERC. On February 2, 2015, FERC issued an Order granting rehearing to allow for additional time for FERC to consider the request. On April 20, 2015, ANR filed a settlement with FERC that included an agreement by ANR to pay Great Lakes the difference between the historical and maximum rates, subject to approval by FERC. Until Great Lakes obtains clarification from FERC or the settlement is approved, it is providing service to ANR under multiple service agreements and rates. Great Lakes has deferred approximately $9.4 million of revenue related to services performed in 2014 and has deferred approximately $14 million of revenue related to services performed in 2015 under such agreements that may not ultimately be collected if the settlement is not approved by FERC. | |||||
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||
NOTE 11FAIR VALUE MEASUREMENTS | ||||||||||
(a) Fair Value Hierarchy | ||||||||||
Under Accounting Standards Codification (ASC) 820, Fair Value Measurements and Disclosures, fair value measurements are characterized in one of three levels based upon the inputs used to arrive at the measurement. The three levels of the fair value hierarchy are as follows: | ||||||||||
· | Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access at the measurement date. | |||||||||
· | Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. | |||||||||
· | Level 3 inputs are unobservable inputs for the asset or liability. | |||||||||
When appropriate, valuations are adjusted for various factors including credit considerations. Such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used. | ||||||||||
(b) Fair Value of Financial Instruments | ||||||||||
The carrying value of cash and cash equivalents, accounts receivable and other, accounts payable and accrued liabilities, accounts payable to affiliates and accrued interest approximate their fair values because of the short maturity or duration of these instruments, or because the instruments bear a variable rate of interest or a rate that approximates current rates. The fair value of the Partnership’s long-term debt is estimated by discounting the future cash flows of each instrument at estimated current borrowing rates. The fair value of interest rate derivatives is calculated using the income approach which uses period-end market rates and applies a discounted cash flow valuation model. | ||||||||||
The estimated fair value of the Partnership’s debt as at March 31, 2015 and December 31, 2014 are as follows: | ||||||||||
(unaudited) | March 31, 2015 | December 31, 2014 | ||||||||
(millions of dollars) | Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||
Senior Credit Facility due 2017 | 320 | 320 | 330 | 330 | ||||||
Term Loan Facility due 2018 | 500 | 500 | 500 | 500 | ||||||
Short-Term Loan Facility due 2015 | 170 | 170 | 170 | 170 | ||||||
4.65% Senior Notes due 2021, net | 350 | 368 | 350 | 375 | ||||||
4.375% Senior Notes due 2025, net | 349 | 353 | - | - | ||||||
5.09% Unsecured Senior Notes due 2015 | 75 | 76 | 75 | 76 | ||||||
5.29% Unsecured Senior Notes due 2020 | 100 | 112 | 100 | 111 | ||||||
5.69% Unsecured Senior Notes due 2035 | 150 | 169 | 150 | 168 | ||||||
3.82% Series D Senior Notes due 2017 | 20 | 21 | 20 | 21 | ||||||
2,034 | 2,089 | 1,695 | 1,751 | |||||||
Long-term debt is recorded at amortized cost and classified in Level II of the fair value hierarchy for fair value disclosure purposes. Interest rate derivative assets and liabilities are classified in Level II for all periods presented where the fair value is determined by using valuation techniques that refer to observable market data or estimated market prices. | ||||||||||
Market risk is the risk that changes in market interest rates may result in fluctuations in the fair values or cash flows of financial instruments. The Partnership’s floating rate debt is subject to LIBOR benchmark interest rate risk. The Partnership uses interest rate derivatives to manage its exposure to interest rate risk. We regularly assess the impact of interest rate fluctuations on future cash flows and evaluate hedging opportunities to mitigate our interest rate risk. | ||||||||||
The interest rate swaps are structured such that the cash flows of the derivative instruments match those of the variable rate of interest on the Term Loan Facility. The Partnership hedged interest payments on $150 million of variable-rate Term Loan Facility with interest rate swaps effective September 3, 2013 and maturing July 1, 2018, at a weighted average fixed interest rate of 2.79 percent. At March 31, 2015, the fair value of the interest rate swaps accounted for as cash flow hedges was a liability of $2 million (both on a gross and net basis) (December 31, 2014 - $1 million). The Partnership did not record any amounts in net income related to ineffectiveness for interest rate hedges for the three months ended March 31, 2015 (2014 – nil). The change in fair value of interest rate derivative instruments recognized in other comprehensive income was a loss of $1 million for the three months ended March 31, 2015 (2014 – less than $1 million). For the three months ended March 31, 2015, the net realized loss related to the interest rate swaps was $1 million and was included in financial charges and other (2014 – $1 million). | ||||||||||
The Partnership has no master netting agreements; however, contracts contain provisions with rights of offset. The Partnership has elected to present the fair value of derivative instruments with the right to offset on a gross basis in the balance sheet. Had the Partnership elected to present these instruments on a net basis, there would be no effect on the consolidated balance sheet as of March 31, 2015 and December 31, 2014. | ||||||||||
ACCOUNTS_RECEIVABLE_AND_OTHER
ACCOUNTS RECEIVABLE AND OTHER | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
ACCOUNTS RECEIVABLE AND OTHER | |||||
ACCOUNTS RECEIVABLE AND OTHER | |||||
NOTE 12ACCOUNTS RECEIVABLE AND OTHER | |||||
(unaudited) | |||||
(millions of dollars) | March 31, 2015 | December 31, 2014 | |||
Trade accounts receivable, net of allowance of nil | 30 | 30 | |||
Accounts receivable from affiliates | 1 | 1 | |||
Other | 4 | 4 | |||
35 | 35 | ||||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2015 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | |
NOTE 13SUBSEQUENT EVENTS | |
Management of the Partnership has reviewed subsequent events through May 8, 2015, the date the financial statements were issued, and concluded there were no events or transactions during this period that would require recognition or disclosure in the consolidated financial statements other than what is disclosed here and/or those already disclosed in the preceding notes. | |
On April 1, 2015, the Partnership acquired the remaining 30 percent interest in GTN from a subsidiary of TransCanada for $446 million plus purchase price adjustments of $10 million. The purchase price consisted of $263 million in cash (including preliminary purchase price adjustments of $10 million), the assumption of $98 million in proportional GTN debt and the issuance of $95 million of new Class B units to TransCanada. | |
The Partnership funded the cash portion of the transaction using a portion of the proceeds received on our March 13, 2015 debt offering. The Class B units will be entitled to distribution based on 30 percent of GTN’s annual distributions as follows: i) for the first five years, 100 percent of distributions above $20 million; and ii) for subsequent years, 25 percent of distributions above $20 million. | |
The 2015 GTN Acquisition, which resulted in GTN being wholly-owned by the Partnership, will continue to be accounted for as a transaction between entities under common control, similar to pooling of interests, whereby the acquired interest will be recorded at TransCanada’s carrying value and the total excess purchase price paid will be recorded as a reduction in Partners’ Equity. | |
On April 23, 2015, the board of directors of our General Partner declared the Partnership’s first quarter 2015 cash distribution in the amount of $0.84 per common unit payable on May 15, 2015 to unitholders of record as of May 5, 2015. | |
GTN declared its first quarter 2015 distribution of $37 million on April 21, 2015. The Partnership will receive its 100 percent share on May 1, 2015. | |
Northern Border declared its first quarter 2015 distribution of $52 million on April 21, 2015, of which the Partnership will receive its 50 percent share or $26 million on May 1, 2015. | |
Great Lakes declared its first quarter 2015 distribution of $30 million on April 21, 2015, of which the Partnership will receive its 46.45 percent share or $14 million on May 1, 2015. | |
On April 23, 2015, GTN filed a rate settlement with FERC to satisfy GTN’s obligations from its 2011 rate settlement for new rates to be in effect on January 1, 2016. The 2015 settlement, if approved, will reduce rates on the mainline by 3 percent on July 1, 2015. In January, 2016, GTN’s rates will decrease a further 10 percent through December 31, 2019. Unless superseded by a subsequent rate case or settlement, GTN’s rates will decrease an additional 8 percent for the period January 1, 2020 through December 31, 2021 when GTN will be required to establish new rates. We expect that GTN’s near term results will not be materially affected due to increased contracting and other revenue opportunities on the system. | |
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | |
(a) Basis of Presentation | |
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. | |
Use of Estimates | |
(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. | |
INVESTMENTS_IN_UNCONSOLIDATED_1
INVESTMENTS IN UNCONSOLIDATED AFFILIATES (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
INVESTMENTS IN UNCONSOLIDATED AFFILIATES | |||||||||||
Schedule of investments in unconsolidated affiliates | |||||||||||
Ownership | Equity Earnings from | Investments in | |||||||||
Unconsolidated Affiliates | Unconsolidated Affiliates | ||||||||||
Interest at | Three months | ||||||||||
(unaudited) | March 31, | ended March 31, | March 31, | December 31, | |||||||
(millions of dollars) | 2015 | 2015 | 2014 | 2015 | 2014 | ||||||
Northern Border(a) | 50% | 20 | 23 | 503 | 505 | ||||||
Great Lakes | 46.45% | 11 | 10 | 680 | 672 | ||||||
31 | 33 | 1,183 | 1,177 | ||||||||
(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 | |||||||||||
Investments in unconsolidated affiliates | |||||||||||
Summarized financial information for equity investees | |||||||||||
(unaudited) | |||||||||||
(millions of dollars) | March 31, 2015 | December 31, 2014 | |||||||||
ASSETS | |||||||||||
Cash and cash equivalents | 51 | 41 | |||||||||
Other current assets | 36 | 34 | |||||||||
Plant, property and equipment, net | 1,150 | 1,163 | |||||||||
Other assets | 33 | 34 | |||||||||
1,270 | 1,272 | ||||||||||
LIABILITIES AND PARTNERS’ EQUITY | |||||||||||
Current liabilities | 65 | 64 | |||||||||
Deferred credits and other | 23 | 22 | |||||||||
Long-term debt, including current maturities | 411 | 411 | |||||||||
Partners’ equity | |||||||||||
Partners’ capital | 773 | 777 | |||||||||
Accumulated other comprehensive loss | (2 | ) | (2 | ) | |||||||
1,270 | 1,272 | ||||||||||
Three months ended | |||||||||||
(unaudited) | March 31, | ||||||||||
(millions of dollars) | 2015 | 2014 | |||||||||
Transmission revenues | 75 | 86 | |||||||||
Operating expenses | (16 | ) | (18 | ) | |||||||
Depreciation | (15 | ) | (15 | ) | |||||||
Financial charges and other | (5 | ) | (6 | ) | |||||||
Net income | 39 | 47 | |||||||||
Great Lakes | |||||||||||
Investments in unconsolidated affiliates | |||||||||||
Summarized financial information for equity investees | |||||||||||
(unaudited) | |||||||||||
(millions of dollars) | March 31, 2015 | December 31, 2014 | |||||||||
ASSETS | |||||||||||
Current assets | 88 | 66 | |||||||||
Plant, property and equipment, net | 741 | 748 | |||||||||
829 | 814 | ||||||||||
LIABILITIES AND PARTNERS’ EQUITY | |||||||||||
Current liabilities | 45 | 38 | |||||||||
Long-term debt, including current maturities | 307 | 316 | |||||||||
Partners’ equity | 477 | 460 | |||||||||
829 | 814 | ||||||||||
Three months ended | |||||||||||
(unaudited) | March 31, | ||||||||||
(millions of dollars) | 2015 | 2014 | |||||||||
Transmission revenues | 48 | 48 | |||||||||
Operating expenses | (11 | ) | (12 | ) | |||||||
Depreciation | (7 | ) | (7 | ) | |||||||
Financial charges and other | (6 | ) | (7 | ) | |||||||
Net income | 24 | 22 | |||||||||
CREDIT_FACILITIES_SHORTTERM_LO1
CREDIT FACILITIES, SHORT-TERM LOAN FACILITY AND LONG-TERM DEBT (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
CREDIT FACILITIES, SHORT-TERM LOAN FACILITY AND LONG-TERM DEBT | |||||||
Schedule of credit facilities, short-term loan facility and long-term debt | |||||||
(unaudited) | |||||||
(millions of dollars) | March 31, 2015 | December 31, 2014 | |||||
Senior Credit Facility due 2017 | 320 | 330 | |||||
Term Loan Facility due 2018 | 500 | 500 | |||||
Short-Term Loan Facility due 2015 | 170 | 170 | |||||
4.65% Unsecured Senior Notes due 2021, net of discount | 350 | 350 | |||||
(2015 and 2014 – nil) | |||||||
4.375% Unsecured Senior Notes due 2025, net of $1 million discount | 349 | - | |||||
5.09% Unsecured Senior Notes due 2015 | 75 | 75 | |||||
5.29% Unsecured Senior Notes due 2020 | 100 | 100 | |||||
5.69% Unsecured Senior Notes due 2035 | 150 | 150 | |||||
3.82% Series D Senior Notes due 2017 | 20 | 20 | |||||
2,034 | 1,695 | ||||||
Less: current portion | 249 | 249 | |||||
1,785 | 1,446 | ||||||
Schedule of principal repayments required on debt | |||||||
(unaudited) | |||||||
(millions of dollars) | |||||||
2015 | 249 | ||||||
2016 | 4 | ||||||
2017 | 332 | ||||||
2018 | 500 | ||||||
2019 | - | ||||||
2020 | 100 | ||||||
Thereafter | 849 | ||||||
2,034 | |||||||
NET_INCOME_PER_COMMON_UNIT_Tab
NET INCOME PER COMMON UNIT (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
NET INCOME PER COMMON UNIT | |||||
Schedule of net income per common unit | |||||
Three months ended | |||||
(unaudited) | March 31, | ||||
(millions of dollars, except per common unit amounts) | 2015 | 2014 | |||
Net income attributable to controlling interests | 57 | 57 | |||
Net income allocated to General Partner, including incentive distribution rights (IDRs) (a) | 1 | 1 | |||
Net income allocable to common units | 56 | 56 | |||
Weighted average common units outstanding (millions) – basic and diluted (b) | 63.6 | 62.3 | |||
Net income per common unit – basic and diluted | $ | $ | |||
0.88 | 0.90 | ||||
(a) | In the calculation of basic and diluted net income per common unit, the net income allocated to the General Partner includes IDRs pertaining to the current reporting period, but declared and paid in the subsequent period. | ||||
(b) | Under the ATM program, the Partnership has issued 1,288,481 common units. | ||||
CHANGE_IN_OPERATING_WORKING_CA1
CHANGE IN OPERATING WORKING CAPITAL (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
CHANGE IN OPERATING WORKING CAPITAL | |||||||
Summary of change in operating working capital | (unaudited) | Three months ended March 31, | |||||
(millions of dollars) | 2015 | 2014 | |||||
Change in accounts receivable and other | (1 | ) | 3 | ||||
Change in accounts payable and accrued liabilities | 2 | 4 | |||||
Change in accounts payable to affiliates | (7 | ) | 1 | ||||
Change in accrued interest | 9 | 8 | |||||
Change in operating working capital | 3 | 16 | |||||
RELATED_PARTY_TRANSACTIONS_Tab
RELATED PARTY TRANSACTIONS (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
RELATED PARTY TRANSACTIONS | |||||
Summary of capital and operating costs charged to pipeline systems by related party | |||||
Three months ended | |||||
(unaudited) | March 31, | ||||
(millions of dollars) | 2015 | 2014 | |||
Capital and operating costs charged by TransCanada’s subsidiaries to: | |||||
GTN (a) | 6 | 6 | |||
Northern Border (a) | 7 | 7 | |||
Bison (a) | 1 | 1 | |||
Great Lakes (a) | 6 | 7 | |||
North Baja | 1 | 1 | |||
Tuscarora | 1 | 1 | |||
Impact on the Partnership’s net income attributable to controlling interests: | |||||
GTN | 4 | 4 | |||
Northern Border | 3 | 4 | |||
Bison | 1 | 1 | |||
Great Lakes | 3 | 3 | |||
North Baja | 1 | 1 | |||
Tuscarora | 1 | 1 | |||
(a) | Represents 100 percent of the costs. | ||||
Summary of amount payable to related party for costs charged | |||||
(unaudited) | |||||
(millions of dollars) | March 31, 2015 | December 31, 2014 | |||
Amount payable to TransCanada’s subsidiaries for costs charged in the period by: | |||||
GTN (a) | 5 | 10 | |||
Northern Border (a) | 4 | 10 | |||
Bison | 1 | 2 | |||
Great Lakes (a) | 4 | 9 | |||
North Baja | 1 | 1 | |||
Tuscarora | 1 | 1 | |||
(a) | Represents 100 percent of the costs. | ||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||
Schedule of estimated fair value of debt | ||||||||||
(unaudited) | March 31, 2015 | December 31, 2014 | ||||||||
(millions of dollars) | Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||
Senior Credit Facility due 2017 | 320 | 320 | 330 | 330 | ||||||
Term Loan Facility due 2018 | 500 | 500 | 500 | 500 | ||||||
Short-Term Loan Facility due 2015 | 170 | 170 | 170 | 170 | ||||||
4.65% Senior Notes due 2021, net | 350 | 368 | 350 | 375 | ||||||
4.375% Senior Notes due 2025, net | 349 | 353 | - | - | ||||||
5.09% Unsecured Senior Notes due 2015 | 75 | 76 | 75 | 76 | ||||||
5.29% Unsecured Senior Notes due 2020 | 100 | 112 | 100 | 111 | ||||||
5.69% Unsecured Senior Notes due 2035 | 150 | 169 | 150 | 168 | ||||||
3.82% Series D Senior Notes due 2017 | 20 | 21 | 20 | 21 | ||||||
2,034 | 2,089 | 1,695 | 1,751 | |||||||
ACCOUNTS_RECEIVABLE_AND_OTHER_
ACCOUNTS RECEIVABLE AND OTHER (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
ACCOUNTS RECEIVABLE AND OTHER | |||||
Schedule of accounts receivable and other | (unaudited) | ||||
(millions of dollars) | March 31, 2015 | December 31, 2014 | |||
Trade accounts receivable, net of allowance of nil | 30 | 30 | |||
Accounts receivable from affiliates | 1 | 1 | |||
Other | 4 | 4 | |||
35 | 35 | ||||
INVESTMENTS_IN_UNCONSOLIDATED_2
INVESTMENTS IN UNCONSOLIDATED AFFILIATES (Details) (USD $) | 1 Months Ended | 3 Months Ended | ||
In Millions, unless otherwise specified | Apr. 30, 2006 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Investments in unconsolidated affiliates | ||||
Equity Earnings from Unconsolidated Affiliates | $31 | $33 | ||
Investments in Unconsolidated Affiliates | 1,183 | 1,177 | ||
Northern Border | ||||
Investments in unconsolidated affiliates | ||||
Transaction fee | 10 | |||
Interest acquired by Partnership (as a percent) | 20.00% | |||
Great Lakes | ||||
Investments in unconsolidated affiliates | ||||
Total cash call issued to fund debt repayment | 9 | |||
Northern Border | ||||
Investments in unconsolidated affiliates | ||||
Ownership interest (as a percent) | 50.00% | |||
Equity Earnings from Unconsolidated Affiliates | 20 | 23 | ||
Investments in Unconsolidated Affiliates | 503 | 505 | ||
Amortization period of transaction fee | 12 years | |||
Undistributed earnings | 0 | 0 | ||
Assets | ||||
Cash and cash equivalents | 51 | 41 | ||
Other current assets | 36 | 34 | ||
Plant, property and equipment, net | 1,150 | 1,163 | ||
Other assets | 33 | 34 | ||
Assets, total | 1,270 | 1,272 | ||
LIABILITIES AND PARTNERS' EQUITY | ||||
Current liabilities | 65 | 64 | ||
Deferred credits and other | 23 | 22 | ||
Long-term debt, including current maturities | 411 | 411 | ||
Partners' equity | ||||
Partners' equity | 773 | 777 | ||
Accumulated other comprehensive loss | -2 | -2 | ||
Liabilities and Partners' Equity, total | 1,270 | 1,272 | ||
Revenues (expenses) | ||||
Transmission revenues | 75 | 86 | ||
Operating expenses | -16 | -18 | ||
Depreciation | -15 | -15 | ||
Financial charges and other | -5 | -6 | ||
Net income | 39 | 47 | ||
Great Lakes | ||||
Investments in unconsolidated affiliates | ||||
Ownership interest (as a percent) | 46.45% | |||
Equity Earnings from Unconsolidated Affiliates | 11 | 10 | ||
Investments in Unconsolidated Affiliates | 680 | 672 | ||
Equity contribution | 4 | 4 | ||
Undistributed earnings | 0 | 0 | ||
Assets | ||||
Current assets | 88 | 66 | ||
Plant, property and equipment, net | 741 | 748 | ||
Assets, total | 829 | 814 | ||
LIABILITIES AND PARTNERS' EQUITY | ||||
Current liabilities | 45 | 38 | ||
Long-term debt, including current maturities | 307 | 316 | ||
Partners' equity | ||||
Partners' equity | 477 | 460 | ||
Liabilities and Partners' Equity, total | 829 | 814 | ||
Revenues (expenses) | ||||
Transmission revenues | 48 | 48 | ||
Operating expenses | -11 | -12 | ||
Depreciation | -7 | -7 | ||
Financial charges and other | -6 | -7 | ||
Net income | $24 | $22 |
CREDIT_FACILITIES_SHORTTERM_LO2
CREDIT FACILITIES, SHORT-TERM LOAN FACILITY AND LONG-TERM DEBT (Details) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | ||
Mar. 31, 2015 | Apr. 01, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Mar. 13, 2015 | |
Credit facilities, short-term loan facility and long-term debt | ||||||
Credit facilities, short-term loan facility and long-term debt | $2,034,000,000 | 2,034,000,000 | 1,695,000,000 | |||
Less: current portion | 249,000,000 | 249,000,000 | 249,000,000 | |||
Long-term debt | 1,785,000,000 | 1,785,000,000 | 1,446,000,000 | |||
Net proceeds | 349,000,000 | |||||
3.82% Series D Senior Notes due 2017 | ||||||
Credit facilities, short-term loan facility and long-term debt | ||||||
Stated interest rate (as a percent) | 3.82% | 3.82% | 3.82% | |||
Credit facilities, short-term loan facility and long-term debt | 20,000,000 | 20,000,000 | 20,000,000 | |||
Senior Credit Facility, Term Loan Facilities and Short-Term Loan Facility | ||||||
Credit facilities, short-term loan facility and long-term debt | ||||||
Leverage ratio (as a percent) | 4.97% | 5.20% | ||||
Senior Credit Facility, Term Loan Facilities and Short-Term Loan Facility | Debt agreement covenants, initial period after occurrence of acquisition | ||||||
Credit facilities, short-term loan facility and long-term debt | ||||||
Additional period immediately following the fiscal quarter in which a specified material acquisition occurs | 6 months | |||||
Senior Credit Facility, Term Loan Facilities and Short-Term Loan Facility | Debt agreement covenants, initial period after occurrence of acquisition | Maximum | ||||||
Credit facilities, short-term loan facility and long-term debt | ||||||
Leverage ratio (as a percent) | 5.50% | |||||
Senior Credit Facility, Term Loan Facilities and Short-Term Loan Facility | Debt agreement covenants, periods subsequent to initial period after occurrence of acquisition | Maximum | ||||||
Credit facilities, short-term loan facility and long-term debt | ||||||
Leverage ratio (as a percent) | 5.00% | |||||
Term loan | Short-Term Loan Facility due 2015 | ||||||
Credit facilities, short-term loan facility and long-term debt | ||||||
Credit facilities, short-term loan facility and long-term debt | 170,000,000 | 170,000,000 | 170,000,000 | |||
Term loan | Short-Term Loan Facility due 2015 | LIBOR | ||||||
Credit facilities, short-term loan facility and long-term debt | ||||||
Variable rate basis | LIBOR | |||||
Debt average interest rate (as a percent) | 1.30% | |||||
Debt interest rate, at period end (as a percent) | 1.30% | 1.30% | ||||
Senior revolving credit facility | Senior Credit Facility due 2017 | ||||||
Credit facilities, short-term loan facility and long-term debt | ||||||
Credit facilities, short-term loan facility and long-term debt | 320,000,000 | 320,000,000 | 330,000,000 | |||
Maximum borrowing capacity | 500,000,000 | 500,000,000 | ||||
Amount outstanding under credit facility | 320,000,000 | 320,000,000 | 330,000,000 | |||
Remaining borrowing capacity | 180,000,000 | 180,000,000 | ||||
Senior revolving credit facility | Senior Credit Facility due 2017 | LIBOR | ||||||
Credit facilities, short-term loan facility and long-term debt | ||||||
Variable rate basis | LIBOR | LIBOR | LIBOR | |||
Debt average interest rate (as a percent) | 1.43% | 1.42% | ||||
Debt interest rate, at period end (as a percent) | 1.43% | 1.43% | 1.41% | |||
Term loan | Term Loan Facility due 2018 | ||||||
Credit facilities, short-term loan facility and long-term debt | ||||||
Credit facilities, short-term loan facility and long-term debt | 500,000,000 | 500,000,000 | 500,000,000 | |||
Term loan | Term Loan Facility due 2018 | LIBOR borrowings | LIBOR | ||||||
Credit facilities, short-term loan facility and long-term debt | ||||||
Variable rate basis | LIBOR | LIBOR | LIBOR | |||
Debt average interest rate (as a percent) | 1.43% | 1.42% | ||||
Debt interest rate, at period end (as a percent) | 1.43% | 1.43% | 1.41% | |||
Term loan | Term Loan Facility due 2018 | LIBOR borrowings | LIBOR | Hedges of cash flows | Interest rate swaps | ||||||
Credit facilities, short-term loan facility and long-term debt | ||||||
Debt average interest rate (as a percent) | 1.83% | 1.83% | ||||
Unsecured debt | 4.65% Senior Notes due 2021 | ||||||
Credit facilities, short-term loan facility and long-term debt | ||||||
Stated interest rate (as a percent) | 4.65% | 4.65% | 4.65% | |||
Discount | 0 | 0 | 0 | |||
Credit facilities, short-term loan facility and long-term debt | 350,000,000 | 350,000,000 | 350,000,000 | |||
Unsecured debt | 4.375% Senior Notes due 2025 | ||||||
Credit facilities, short-term loan facility and long-term debt | ||||||
Stated interest rate (as a percent) | 4.38% | 4.38% | 4.38% | |||
Discount | 1,000,000 | 1,000,000 | ||||
Credit facilities, short-term loan facility and long-term debt | 349,000,000 | 349,000,000 | ||||
Amount of debt | 350,000,000 | |||||
Net proceeds | 346,000,000 | |||||
Unsecured debt | 5.09% Senior Notes due 2015 | ||||||
Credit facilities, short-term loan facility and long-term debt | ||||||
Stated interest rate (as a percent) | 5.09% | 5.09% | 5.09% | |||
Credit facilities, short-term loan facility and long-term debt | 75,000,000 | 75,000,000 | 75,000,000 | |||
Unsecured debt | 5.29% Senior Notes due 2020 | ||||||
Credit facilities, short-term loan facility and long-term debt | ||||||
Stated interest rate (as a percent) | 5.29% | 5.29% | 5.29% | |||
Credit facilities, short-term loan facility and long-term debt | 100,000,000 | 100,000,000 | 100,000,000 | |||
Unsecured debt | 5.69% Senior Notes due 2035 | ||||||
Credit facilities, short-term loan facility and long-term debt | ||||||
Stated interest rate (as a percent) | 5.69% | 5.69% | 5.69% | |||
Credit facilities, short-term loan facility and long-term debt | $150,000,000 | 150,000,000 | 150,000,000 | |||
Subsequent event | GTN | Former parent, TransCanada subsidiaries | Transaction between entities under common control | ||||||
Credit facilities, short-term loan facility and long-term debt | ||||||
Interest acquired by Partnership (as a percent) | 30.00% | |||||
GTN | Unsecured debt | 5.09% Senior Notes due 2015 | ||||||
Credit facilities, short-term loan facility and long-term debt | ||||||
Stated interest rate (as a percent) | 5.09% | 5.09% | ||||
GTN | Senior Notes | Maximum | ||||||
Credit facilities, short-term loan facility and long-term debt | ||||||
Percentage of debt to total capitalization | 70.00% |
CREDIT_FACILITIES_SHORTTERM_LO3
CREDIT FACILITIES, SHORT-TERM LOAN FACILITY AND LONG-TERM DEBT (Details 2) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Principal repayments required on debt | ||
2015 | $249 | |
2016 | 4 | |
2017 | 332 | |
2018 | 500 | |
2020 | 100 | |
Thereafter | 849 | |
Total credit facilities and long-term debt | $2,034 | $1,695 |
PARTNERS_EQUITY_Details
PARTNERS' EQUITY (Details) (USD $) | 3 Months Ended | 1 Months Ended | 8 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Aug. 31, 2014 | Mar. 31, 2015 | |
Institution | ||||
TC PipeLines GP, Inc. | General Partner | ||||
Partners' Equity | ||||
Ownership interest in the Partnership (as a percent) | 2.00% | 2.00% | ||
ATM Equity Issuance Program | Common Units (Limited Partners) | ||||
Partners' Equity | ||||
Number of financial institutions | 5 | |||
Units sold | 54,701 | 1,288,481 | ||
Net proceeds from public offering of common units | 3,400,000 | |||
Sales agent commissions | 34,000 | |||
ATM Equity Issuance Program | TC PipeLines GP, Inc. | General Partner | ||||
Partners' Equity | ||||
Equity contribution | 100,000 | |||
ATM Equity Issuance Program | Maximum | Expected | Common Units (Limited Partners) | ||||
Partners' Equity | ||||
Gross proceeds from sale of common units | 200,000,000 | |||
ATM Equity Issuance Program | Minimum | Common Units (Limited Partners) | ||||
Partners' Equity | ||||
Number of managers to agree with equity sale method | 1 |
NET_INCOME_PER_COMMON_UNIT_Det
NET INCOME PER COMMON UNIT (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
General Partner | ||
Partners' Equity | ||
Incentive distributions | $0.30 | $0 |
TC PipeLines GP, Inc. | General Partner | ||
Partners' Equity | ||
General partner interest (as a percent) | 2.00% | 2.00% |
NET_INCOME_PER_COMMON_UNIT_Det1
NET INCOME PER COMMON UNIT (Details 2) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net income per common unit | ||
Net income attributable to controlling interests | $57 | $57 |
Net income allocated to General Partner, including incentive distribution rights (IDRs) | 1 | 1 |
Net income allocable to common units | $56 | $56 |
Weighted average common units outstanding (millions) - basic (in units) | 63.6 | 62.3 |
Weighted average common units outstanding (millions) - diluted (in units) | 63.6 | 62.3 |
Net income per common unit - basic (in dollars per unit) | $0.88 | $0.90 |
Net income per common unit - diluted (in dollars per unit) | $0.88 | $0.90 |
NET_INCOME_PER_COMMON_UNIT_Det2
NET INCOME PER COMMON UNIT (Details 3) (ATM Equity Issuance Program, Common Units (Limited Partners)) | 3 Months Ended | 8 Months Ended |
Mar. 31, 2015 | Mar. 31, 2015 | |
ATM Equity Issuance Program | Common Units (Limited Partners) | ||
Partners' Equity | ||
Units issued | 54,701 | 1,288,481 |
CASH_DISTRIBUTIONS_Details
CASH DISTRIBUTIONS (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Distributions | ||
Partnership distribution (in dollars per unit) | $0.84 | $0.81 |
General Partner | ||
Distributions | ||
Incentive distributions | $0.30 | $0 |
Common units and General Partner interest combined | ||
Distributions | ||
Partnership distribution | $55 | $52 |
CHANGE_IN_OPERATING_WORKING_CA2
CHANGE IN OPERATING WORKING CAPITAL (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CHANGE IN OPERATING WORKING CAPITAL | ||
Change in accounts receivable and other | ($1) | $3 |
Change in accounts payable and accrued liabilities | 2 | 4 |
Change in accounts payable to affiliates | -7 | 1 |
Change in accrued interest | 9 | 8 |
Change in operating working capital | $3 | $16 |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (USD $) | 3 Months Ended | 0 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 |
Capital and operating costs charged to the pipeline systems and amount payable | ||||
Accounts payable to affiliates | $8 | 15 | $15 | |
Amount included in receivables from related party | 1 | 1 | 1 | |
General Partner | Reimbursement of costs of services provided | ||||
Capital and operating costs charged to the pipeline systems and amount payable | ||||
Costs charged | 1 | 1 | ||
TransCanada's subsidiaries | GTN | ||||
Capital and operating costs charged to the pipeline systems and amount payable | ||||
Accounts payable to affiliates | 5 | 10 | 10 | |
TransCanada's subsidiaries | GTN | Capital and operating costs | ||||
Capital and operating costs charged to the pipeline systems and amount payable | ||||
Costs charged | 6 | 6 | ||
Impact on the Partnership's net income attributable to controlling interests | 4 | 4 | ||
Percentage of capital and operating costs charged | 100.00% | 100.00% | 100.00% | |
TransCanada's subsidiaries | Northern Border | ||||
Capital and operating costs charged to the pipeline systems and amount payable | ||||
Accounts payable to affiliates | 4 | 10 | 10 | |
TransCanada's subsidiaries | Northern Border | Capital and operating costs | ||||
Capital and operating costs charged to the pipeline systems and amount payable | ||||
Costs charged | 7 | 7 | ||
Impact on the Partnership's net income attributable to controlling interests | 3 | 4 | ||
Percentage of capital and operating costs charged | 100.00% | 100.00% | 100.00% | |
TransCanada's subsidiaries | Bison | ||||
Capital and operating costs charged to the pipeline systems and amount payable | ||||
Accounts payable to affiliates | 1 | 2 | 2 | |
TransCanada's subsidiaries | Bison | Capital and operating costs | ||||
Capital and operating costs charged to the pipeline systems and amount payable | ||||
Costs charged | 1 | 1 | ||
Impact on the Partnership's net income attributable to controlling interests | 1 | 1 | ||
Percentage of capital and operating costs charged | 100.00% | 100.00% | ||
TransCanada's subsidiaries | Great Lakes | ||||
Capital and operating costs charged to the pipeline systems and amount payable | ||||
Accounts payable to affiliates | 4 | 9 | 9 | |
Amount included in receivables from related party | 11 | 15 | 15 | |
TransCanada's subsidiaries | Great Lakes | Capital and operating costs | ||||
Capital and operating costs charged to the pipeline systems and amount payable | ||||
Costs charged | 6 | 7 | ||
Impact on the Partnership's net income attributable to controlling interests | 3 | 3 | ||
Percentage of capital and operating costs charged | 100.00% | 100.00% | 100.00% | |
TransCanada's subsidiaries | Great Lakes | Transportation contracts | ||||
Capital and operating costs charged to the pipeline systems and amount payable | ||||
Revenues from related party | 29 | 22 | ||
TransCanada's subsidiaries | Great Lakes | Transportation contracts | Total revenues | Major customers | ||||
Capital and operating costs charged to the pipeline systems and amount payable | ||||
Percent of total revenues | 61.00% | 47.00% | ||
TransCanada's subsidiaries | North Baja Pipeline, LLC | ||||
Capital and operating costs charged to the pipeline systems and amount payable | ||||
Accounts payable to affiliates | 1 | 1 | 1 | |
TransCanada's subsidiaries | North Baja Pipeline, LLC | Capital and operating costs | ||||
Capital and operating costs charged to the pipeline systems and amount payable | ||||
Costs charged | 1 | 1 | ||
Impact on the Partnership's net income attributable to controlling interests | 1 | 1 | ||
TransCanada's subsidiaries | Tuscarora Gas Transmission Company | ||||
Capital and operating costs charged to the pipeline systems and amount payable | ||||
Accounts payable to affiliates | 1 | 1 | 1 | |
TransCanada's subsidiaries | Tuscarora Gas Transmission Company | Capital and operating costs | ||||
Capital and operating costs charged to the pipeline systems and amount payable | ||||
Costs charged | 1 | 1 | ||
Impact on the Partnership's net income attributable to controlling interests | 1 | 1 | ||
TransCanada's subsidiaries | Great Lakes | ||||
Capital and operating costs charged to the pipeline systems and amount payable | ||||
Revenue from TransCanada and its affiliates included in the Partnership's equity earnings | 14 | 11 | ||
ANR Pipeline Company | Great Lakes | Firm service between Michigan and Wisconsin | ||||
Capital and operating costs charged to the pipeline systems and amount payable | ||||
Revenue deferred related to services performed | $14 | $9.40 |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 13, 2015 |
In Millions, unless otherwise specified | |||
3.82% Series D Senior Notes due 2017 | |||
Financial Instruments | |||
Stated interest rate (as a percent) | 3.82% | 3.82% | |
Unsecured debt | 4.65% Senior Notes due 2021 | |||
Financial Instruments | |||
Stated interest rate (as a percent) | 4.65% | 4.65% | |
Unsecured debt | 4.375% Senior Notes due 2025 | |||
Financial Instruments | |||
Stated interest rate (as a percent) | 4.38% | 4.38% | |
Unsecured debt | 5.09% Senior Notes due 2015 | |||
Financial Instruments | |||
Stated interest rate (as a percent) | 5.09% | 5.09% | |
Unsecured debt | 5.29% Senior Notes due 2020 | |||
Financial Instruments | |||
Stated interest rate (as a percent) | 5.29% | 5.29% | |
Unsecured debt | 5.69% Senior Notes due 2035 | |||
Financial Instruments | |||
Stated interest rate (as a percent) | 5.69% | 5.69% | |
Carrying Value | |||
Financial Instruments | |||
Debt | 2,034 | 1,695 | |
Carrying Value | 3.82% Series D Senior Notes due 2017 | |||
Financial Instruments | |||
Debt | 20 | 20 | |
Carrying Value | Term loan | Short-Term Loan Facility due 2015 | |||
Financial Instruments | |||
Debt | 170 | 170 | |
Carrying Value | Senior revolving credit facility | Senior Credit Facility due 2017 | |||
Financial Instruments | |||
Debt | 320 | 330 | |
Carrying Value | Term loan | Term Loan Facility due 2018 | |||
Financial Instruments | |||
Debt | 500 | 500 | |
Carrying Value | Unsecured debt | 4.65% Senior Notes due 2021 | |||
Financial Instruments | |||
Debt | 350 | 350 | |
Carrying Value | Unsecured debt | 4.375% Senior Notes due 2025 | |||
Financial Instruments | |||
Debt | 349 | ||
Carrying Value | Unsecured debt | 5.09% Senior Notes due 2015 | |||
Financial Instruments | |||
Debt | 75 | 75 | |
Carrying Value | Unsecured debt | 5.29% Senior Notes due 2020 | |||
Financial Instruments | |||
Debt | 100 | 100 | |
Carrying Value | Unsecured debt | 5.69% Senior Notes due 2035 | |||
Financial Instruments | |||
Debt | 150 | 150 | |
Fair Value | Level 2 | |||
Financial Instruments | |||
Debt | 2,089 | 1,751 | |
Fair Value | Level 2 | 3.82% Series D Senior Notes due 2017 | |||
Financial Instruments | |||
Debt | 21 | 21 | |
Fair Value | Level 2 | Term loan | Short-Term Loan Facility due 2015 | |||
Financial Instruments | |||
Debt | 170 | 170 | |
Fair Value | Level 2 | Senior revolving credit facility | Senior Credit Facility due 2017 | |||
Financial Instruments | |||
Debt | 320 | 330 | |
Fair Value | Level 2 | Term loan | Term Loan Facility due 2018 | |||
Financial Instruments | |||
Debt | 500 | 500 | |
Fair Value | Level 2 | Unsecured debt | 4.65% Senior Notes due 2021 | |||
Financial Instruments | |||
Debt | 368 | 375 | |
Fair Value | Level 2 | Unsecured debt | 4.375% Senior Notes due 2025 | |||
Financial Instruments | |||
Debt | 353 | ||
Fair Value | Level 2 | Unsecured debt | 5.09% Senior Notes due 2015 | |||
Financial Instruments | |||
Debt | 76 | 76 | |
Fair Value | Level 2 | Unsecured debt | 5.29% Senior Notes due 2020 | |||
Financial Instruments | |||
Debt | 112 | 111 | |
Fair Value | Level 2 | Unsecured debt | 5.69% Senior Notes due 2035 | |||
Financial Instruments | |||
Debt | 169 | 168 |
FAIR_VALUE_MEASUREMENTS_Detail1
FAIR VALUE MEASUREMENTS (Details 2) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 |
Interest rate swaps from September 3, 2013 through July 1, 2018 | Term loan | Term Loan Facility due 2018 | |||
Interest rate derivatives | |||
Amount of variable-rate debt hedged | $150 | ||
Weighted average fixed interest rate (as a percent) | 2.79% | ||
Interest rate swaps | |||
Interest rate derivatives | |||
Amount recorded in net income related to ineffectiveness for interest rate hedges | 0 | ||
Hedges of cash flows | Interest rate swaps | |||
Interest rate derivatives | |||
Change in fair value of interest rate derivative instruments recognized in other comprehensive income | 1 | ||
Hedges of cash flows | Interest rate swaps | Maximum | |||
Interest rate derivatives | |||
Change in fair value of interest rate derivative instruments recognized in other comprehensive income | 1 | ||
Hedges of cash flows | Interest rate swaps | Financial charges and other | |||
Interest rate derivatives | |||
Net realized loss related to the interest rate swaps | 1 | 1 | |
Designated as hedge | Interest rate swaps | Recurring fair value measurement | Level 2 | |||
Interest rate derivatives | |||
Fair value of derivatives, gross | 2 | 1 | |
Fair value of derivatives, net | $2 | $1 |
ACCOUNTS_RECEIVABLE_AND_OTHER_1
ACCOUNTS RECEIVABLE AND OTHER (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
ACCOUNTS RECEIVABLE AND OTHER | ||
Trade accounts receivable, net of allowance of nil | $30 | $30 |
Accounts receivable from affiliates | 1 | 1 |
Other | 4 | 4 |
Accounts receivable and other | 35 | 35 |
Trade accounts receivable, allowance | $0 | $0 |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (Subsequent event, GTN, Former parent, TransCanada subsidiaries, Transaction between entities under common control, USD $) | 0 Months Ended | |
Apr. 01, 2015 | Apr. 01, 2015 | |
Acquisition | ||
Interest acquired (as a percent) | 30.00% | 30.00% |
Purchase price | $446,000,000 | |
Purchase price adjustments | 10,000,000 | |
Total cash consideration | 263,000,000 | |
Assumption of proportional debt | 98,000,000 | |
Partnership interest | Class B units | ||
Acquisition | ||
Equity issuance | 95,000,000 | |
Distributions | ||
Portion of GTN's annual distributions to which the Class B units are entitled to receive a percentage share of the distributions above $20 million (as a percent) | 30.00% | |
Period for payment of 30 percent of GTN's distributions above $20 million at 100 percent | 5 years | |
Percentage applied to 30 percent of GTN's distributions above $20 million for the first five years | 100.00% | |
Threshold of 30 percent of GTN's annual distributions for payment to Class B units at specified percentage | $20,000,000 | |
Percentage applied to 30 percent of GTN's distributions above $20 million after the first five years | 25.00% |
SUBSEQUENT_EVENTS_Details_2
SUBSEQUENT EVENTS (Details 2) (USD $) | 0 Months Ended | ||||
In Millions, except Per Share data, unless otherwise specified | Apr. 23, 2015 | Apr. 21, 2015 | Apr. 01, 2015 | 1-May-15 | Mar. 31, 2015 |
Northern Border | |||||
Distributions | |||||
Ownership interest (as a percent) | 50.00% | ||||
Great Lakes | |||||
Distributions | |||||
Ownership interest (as a percent) | 46.45% | ||||
Subsequent event | |||||
Distributions | |||||
Cash distribution (in dollars per unit) | $0.84 | ||||
Subsequent event | GTN | |||||
Distributions | |||||
Distribution declared | $37 | ||||
Ownership interest (as a percent) | 100.00% | ||||
Subsequent event | Distribution declared | Northern Border | |||||
Distributions | |||||
Partnership distribution | 52 | ||||
Subsequent event | Distribution declared | Great Lakes | |||||
Distributions | |||||
Partnership distribution | 30 | ||||
Subsequent event | Cash Distribution Paid | Northern Border | |||||
Distributions | |||||
Partnership's share of distributions | 26 | ||||
Subsequent event | Cash Distribution Paid | Great Lakes | |||||
Distributions | |||||
Partnership's share of distributions | $14 |
SUBSEQUENT_EVENTS_Details_3
SUBSEQUENT EVENTS (Details 3) (Subsequent event, GTN, Expected) | 0 Months Ended |
Apr. 23, 2015 | |
Subsequent event | GTN | Expected | |
Subsequent events | |
Mainline rate reduction on July 1, 2015 | 3.00% |
Additional rate decrease January 2016 through December 31, 2019 | 10.00% |
Additional rate decrease January 1, 2020 through December 31, 2021 | 8.00% |