SEGMENT RESULTS-AT-A-GLANCE
	Three months ended December 31
	(millions of dollars except per share amounts)	2006		2005
	Pipelines	126		155
	Energy
	Excluding gains	132		87
	Gain on sale of Paiton Energy	—		115
		132		202
	Corporate	11		(7	)
	Net Income(1)	269		350
	Net Income Per Share – Basic(2)	$0.55		$0.72

	(1) Net Income
	Excluding gain	269		235
	Gain on sale of Paiton Energy	—		115
		269		350
	(2) Net Income Per Share – Basic
	Excluding gain	$0.55		$0.48
	Gain on sale of Paiton Energy	—		0.24
		$0.55		$0.72

Net income for fourth quarter 2006 of $269 million, or $0.55 per share, decreased by $81 million or $0.17 per share compared to $350 million or $0.72 per share for fourth quarter 2005. This decrease was primarily due to an after-tax gain of $115 million or $0.24 per share from the sale of Paiton Energy in fourth quarter 2005.

Excluding the $115-million gain related to the sale of Paiton Energy, net income for fourth quarter 2006 increased $34 million, or $0.07 per share, compared to fourth quarter 2005. This was primarily due to increases of $45 million and $18 million in net earnings from Energy and Corporate, respectively, partially offset by a decrease of $29 million in net earnings from the Pipelines business.

For fourth quarter 2006, Pipeline's net income decreased $29 million compared to fourth quarter 2005 due to a $22-million reduction in net earnings from Wholly Owned Pipelines and a $7-million decrease in net earnings from the Other Pipelines businesses. Wholly Owned Pipelines' net earnings decreased primarily due to a lower ROE and lower average investment bases in the Canadian Mainline and the Alberta System. Net earnings from GTN decreased due to increased operating costs and lower transportation revenues. Net earnings for TransCanada's Other Pipelines decreased primarily due to higher project development and support costs and the impact of a weaker U.S. dollar.

Excluding the gain of $115 million in 2005, Energy's net earnings increased $45 million in fourth quarter 2006, compared to fourth quarter 2005, due to higher operating income from Western Power Operations, Natural Gas Storage and Bruce Power. Partially offsetting these increases were lower operating income from Eastern Power Operations and higher general, administrative and support costs.

Bruce Power's contribution to operating income increased $6 million in fourth quarter 2006, compared to fourth quarter 2005, primarily due to an increased ownership interest in the Bruce A facilities and the positive impact of higher generation volumes, partially offset by lower overall realized prices and higher operating expenses.

Western Power Operations' operating income was $76 million higher in fourth quarter 2006, compared to fourth quarter 2005, primarily due to incremental earnings from the December 31, 2005 acquisition of the 756 MW Sheerness PPA and increased margins from a combination of higher overall realized power prices and higher market heat rates on sales of uncontracted power volumes.

Eastern Power Operations' operating income was $13 million lower in fourth quarter 2006, compared to fourth quarter 2005, primarily due to record hurricane activity in the Gulf of Mexico in 2005 which caused a significant increase in certain commodity prices and increased hydro generation volumes. As a result, higher profits were earned in 2005 from increased generation volumes as a result of unusually high water flows through the TC Hydro facilities, increased margins on the natural gas purchased and resold under the OSP gas supply contracts and higher prices realized on power sold into the spot market. The quarter–over-quarter decrease was partially offset by incremental income earned in 2006 from the startup of the 550 MW Bécancour cogeneration plant in September 2006 and the first wind farm of the Cartier Wind project in November 2006.

Natural Gas Storage operating income increased $13 million in fourth quarter 2006, compared to fourth quarter 2005, primarily due to higher contributions from CrossAlta as a result of increased storage capacity and higher natural gas storage spreads.

General, administrative, support costs and other of the Energy business increased $8 million in fourth quarter 2006, compared to fourth quarter 2005, primarily due to higher business development costs associated with growing the Energy business.

Corporate's net earnings increased $18 million to $11 million in fourth quarter 2006 primarily due to income tax refunds and related interest of approximately $12 million and other positive income tax adjustments.