Notes to Consolidated Financial Statements

1.	Description of TransCanada's Business
2.	Accounting Policies
3.	Accounting Changes
4.	Segmented Information
5.	Plant, Property and Equipment
6.	Goodwill
7.	Rate-Regulated Businesses
8.	Joint Venture Investments
9.	Intangibles and Other Assets
10.	Notes Payable
11.	Deferred Amounts
12.	Income Taxes
13.	Long-Term Debt

14.	Long-Term Debt of Joint Ventures
15.	Junior Subordinated Notes
16.	Non-Controlling Interests
17.	Common Shares
18.	Preferred Shares
19.	Asset Retirement Obligations
20.	Employee Future Benefits
21.	Risk Management and Financial Instruments
22.	Changes in Operating Working Capital
23.	Acquisitions and Dispositions
24.	Commitments, Contingencies and Guarantees
25.	United States Accounting Principles and Reporting

Note 16: Non-Controlling Interests

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The Company's non-controlling interests included in the Consolidated Balance Sheet were as follows:

December 31 (millions of dollars)	2011	2010
Non-controlling interest in TC PipeLines, LP⁽¹⁾	997	686
Preferred shares of subsidiary	389	389
Non-controlling interest in Portland⁽²⁾	79	82
	1,465	1,157

The Company's non-controlling interests included in the Consolidated Income Statement were as follows:

Year ended December 31 (millions of dollars)	2011	2010	2009
Non-controlling interest in TC PipeLines, LP⁽¹⁾	101	87	66
Preferred share dividends of subsidiary	22	22	22
Non-controlling interest in Portland⁽²⁾	6	6	8
	129	115	96

⁽¹⁾

Effective May 3, 2011, the non-controlling interest in TC PipeLines, LP increased from 61.8 per cent to 66.7 per cent due to the issuance of equity to non-controlling interests in TC PipeLines, LP associated with the sale of 25 per cent interests in GTN LLC and Bison LLC pipelines from TransCanada to TC PipeLines, LP. The non-controlling interest in TC PipeLines, LP from November 18, 2009 to May 2, 2011 was 61.8 per cent, from July 1, 2009 to November 17, 2009 was 57.4 per cent, and from February 22, 2007 to June 30, 2009 was 67.9 per cent.

⁽²⁾

The non-controlling interests in Portland as at December 31, 2011 represented the 38.3 per cent interest not owned by TransCanada (2010 and 2009 – 38.3 per cent).

Preferred Shares of Subsidiary

December 31	Number of Shares	Dividend Rate per Share	Redemption Price per Share	2011	2010
	(thousands)			(millions of dollars)	(millions of dollars)
Cumulative First Preferred Shares of Subsidiary
Series U	4,000	$2.80	$50.00	195	195
Series Y	4,000	$2.80	$50.00	194	194
				389	389

The authorized number of preferred shares of TCPL issuable in each series is unlimited. All of the cumulative first preferred shares of TCPL are without par value.

On or after October 15, 2013, TCPL may redeem the Series U preferred shares at $50 per share, and on or after March 5, 2014, TCPL may redeem the Series Y shares at $50 per share.

Cash Dividends

Cash dividends of $22 million or $2.80 per share were paid on the Series U and Series Y preferred shares in each of 2011, 2010 and 2009.

In 2011, TransCanada received fees of $2 million from TC PipeLines, LP (2010 and 2009 – $2 million) and $7 million from Portland (2010 – $7 million; 2009 – $8 million) for services provided.