Notes

Notes

1. Description of TransCanada's Business
2. Accounting Policies
3. Accounting Changes
4. Segmented Information
5. Plant, Property and Equipment
6. Goodwill
7. Intangibles and Other Assets
8. Joint Venture Investments
9. Acquisitions and Dispositions
10. Long-Term Debt
11. Long-Term Debt of Joint Ventures
12. Junior Subordinated Notes
13. Deferred Amounts
14. Rate Regulated Businesses
15. Non-Controlling Interests
16. Common Shares
17. Preferred Shares
18. Risk Management and Financial Instruments
19. Income Taxes
20. Notes Payable
21. Asset Retirement Obligations
22. Employee Future Benefits
23. Changes In Operating Working Capital
24. Commitments, Contingencies and Guarantees
25. Subsequent Events

Note 11: Long-Term Debt of Joint Ventures

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    2009 2008
Outstanding loan amounts
(millions of dollars)
Maturity Dates Outstanding December 31(1) Interest Rate(2) Outstanding December 31(1) Interest Rate(2)
NORTHERN BORDER PIPELINE COMPANY          
Senior Unsecured Notes          
(2009 — US$175; 2008 — US$225)
2012 to 2021 182 7.2% 275 7.7%
Bank Facility          
(2009 — US$108; 2008 — US$96)
2012 112 0.5% 116 3.4%
           
IROQUOIS GAS TRANSMISSION SYSTEM, L.P.          
Senior Unsecured Notes          
(2009 — US$210; 2008 — US$160)
2010 to 2027 219 7.8% 195 7.6%
           
BRUCE POWER L.P. AND BRUCE POWER A L.P.          
Capital Lease Obligations 2018 222 7.5% 235 7.5%
Term Loan 2031 93 7.1% 95 7.1%
           
TRANS QUÉBEC & MARITIMES PIPELINE INC.          
Bonds 2010 to 2014 125 5.2% 137 6.0%
Term Loan 2011 10 0.4% 18 1.9%
           
OTHER 2012 2 2.7% 5 5.5%
    965   1,076  
Less: Current Portion of Long-Term Debt of Joint Ventures   212   207  
    753   869  
(1) Amounts outstanding represent TransCanada's proportionate share, except for Northern Border, which reflects a 50 per cent interest as a result of the Company fully consolidating PipeLines LP.
(2) Interest rates are the effective interest rates except those pertaining to long-term debt issued for TQM's regulated operations, in which case the weighted average interest rate is presented as required by the regulators. Weighted average and effective interest rates are stated as at the respective outstanding dates. At December 31, 2008, the effective interest rate resulting from swap agreements was 0.5 per cent on the Northern Border bank facility (2008 — 4.1 per cent).

The long-term debt of joint ventures is non-recourse to TransCanada, except that TransCanada has provided certain pro-rata guarantees related to the capital lease obligations of Bruce Power. The security provided with respect to the debt of each joint venture is limited to the rights and assets of the joint venture and does not extend to the rights and assets of TransCanada, except to the extent of TransCanada's investment. Trans Québec & Maritimes Pipeline Inc.'s (TQM Pipeline) bonds are secured by a first interest in all TQM Pipeline real and immoveable property and rights, a floating charge on all residual property and assets, and a specific interest on bonds of TQM Finance Inc. and on rights under all licenses and permits relating to the TQM pipeline system and natural gas transportation agreements.

Subject to meeting certain requirements, the Bruce Power capital lease agreements provide for a series of renewals commencing January 1, 2019. The first renewal is for a period of one year and each of 12 renewals thereafter is for a period of two years.

The Company's proportionate share of principal repayments for the next five years resulting from maturities and sinking fund obligations of the non-recourse joint venture debt is approximately as follows: 2010 — $199 million; 2011 — $21 million; 2012 — $120 million; 2013 — $7 million; and 2014 — $44 million.

The Company's proportionate share of principal payments for the next five years resulting from the capital lease obligations of Bruce Power is approximately as follows: 2010 — $13 million; 2011 — $15 million; 2012 — $18 million; 2013 — $20 million; and 2014 — $23 million.

In September 2009, TQM issued $75 million of bonds maturing in September 2014 and bearing interest at 4.05 per cent.

In August 2009, Northern Border issued US$100 million of Senior Unsecured Notes maturing in August 2016 and bearing interest at 6.24 per cent.

In May 2009, Iroquois issued US$140 million Senior Unsecured Notes maturing in May 2019 and bearing interest at 6.63 per cent.

In September 2008, Bruce A entered into a $193 million unsecured term loan maturing December 2031 and bearing interest at 7.1 per cent.

Sensitivity

A one per cent change in interest rates would have the following effect on net income assuming all other variables were to remain constant:

(millions of dollars) Increase Decrease 
Effect on interest expense of variable interest rate debt 1 (1)

Interest Expense of Joint Ventures

Year ended December 31 (millions of dollars) 2009  2008 2007
Interest on long-term debt 51  45 50
Interest on capital lease obligations 17  18 18
Short-term interest and other financial charges 6  7 4
Capitalized interest (11)
Deferrals and amortization 1  2 3
  64  72 75

The Company's proportionate share of the interest payments by joint ventures was $41 million in 2009 (2008 — $50 million; 2007 — $45 million) net of interest capitalized on construction projects.

The Company's proportionate share of interest payments from the capital lease obligations of Bruce Power was $17 million in 2009 (2008 and 2007 — $18 million).