Results
PIPELINES RESULTS
Year ended December 31 (millions of dollars) |
| |
2008 |
2007 |
2006 |
| Wholly Owned Pipelines |
|
|
|
Canadian Mainline |
278 |
273 |
239 |
Alberta System |
145 |
138 |
136 |
|
132 |
104 |
n/a |
GTN |
65 |
58 |
46 |
Foothills |
24 |
26 |
27 |
|
644 |
599 |
448 |
| |
|
|
|
| Other Pipelines |
|
|
|
|
44 |
47 |
44 |
|
25 |
18 |
4 |
Iroquois |
18 |
15 |
15 |
|
16 |
10 |
2 |
|
34 |
46 |
51 |
Northern Development |
(9) |
(7) |
(5) |
General, administrative, support costs and other |
(32) |
(42) |
(30) |
|
96 |
87 |
81 |
| Comparable Earnings(6) |
740 |
686 |
529 |
| Calpine bankruptcy settlements(7) |
152 |
– |
– |
| GTN lawsuit settlement |
10 |
– |
– |
| Bankruptcy settlement with Mirant |
– |
– |
18 |
| Gain on sale of Northern Border Partners, L.P. interest |
– |
– |
13 |
| Net Earnings |
902 |
686 |
560 |
| (1) |
ANR's results include earnings from the date of acquisition of February 22, 2007. |
|
(2) |
Great Lakes' results reflect TransCanada's 53.6 per cent ownership in Great Lakes since February 22, 2007 and 50 per cent ownership prior to that date. |
| (3) |
PipeLines LP's results include TransCanada's effective ownership of an additional 14.9 per cent interest in Great Lakes since February 22, 2007 as a result of PipeLines LP's acquisition of a 46.4 per cent interest in Great Lakes and TransCanada's 32.1 per cent interest in PipeLines LP. Prior to this date, TransCanada had a 13.4 per cent ownership interest in PipeLines LP. |
| (4) |
Tamazunchale's results include operations since December 1, 2006. |
| (5) |
Other includes results of Portland, Ventures LP, TQM, TransGas and Gas Pacifico/INNERGY. |
| (6) |
Refer to the "Non-GAAP Measures" section of this MD&A for further discussion of comparable earnings. |
| (7) |
GTN and Portland received shares of Calpine with an initial after-tax value of $95 million and $38 million (TransCanada's share), respectively, from the bankruptcy settlements with Calpine. These shares were subsequently sold for an additional after-tax gain of $19 million. |
Net earnings from the Pipelines business were $902 million in 2008 compared to $686 million in 2007 and $560 million in 2006. Comparable earnings from the Pipelines business of $740 million in 2008 excluded the $152 million after-tax ($279 million pre-tax) gains received by Portland and the GTN System from the bankruptcy settlements with Calpine and $10 million after-tax ($17 million pre-tax) proceeds received by GTN from a lawsuit settlement with a software supplier. The $54 million increase in comparable earnings in 2008 from 2007 was primarily due to a full year of earnings from ANR, the Alberta System rate settlement and higher earnings for the Canadian Mainline. Comparable earnings in 2006 were $529 million and excluded an $18 million bankruptcy settlement with Mirant and a $13 million gain on sale of TransCanada's general partner interest in Northern Border Partners, L.P. The increase in comparable earnings in 2007 compared to 2006 was primarily due to the acquisitions of ANR and additional interest in Great Lakes, higher earnings as a result of rate settlements for Canadian Mainline and the GTN System, and an increased ownership in PipeLines LP.
