Company: TCPA
Filing Date: 2025-10-06
Form Type: SUPPL
Source: 0001193125-25-231083
Chunk: 22

Company: TRANSCANADA PIPELINES LTD
Filing Date: 2025-10-06
Form: SUPPL
Chunk 22
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 to accrue and include in taxable income on a constant yield basis over the remaining term of the Notes, without regard to the time interest is actually paid on the Notes and without regard to such U.S.
holder’s regular method of accounting for U.S. federal income tax purposes. The amount of OID income includible in such U.S. holder’s taxable income would be determined on the basis of a constant yield method over the remaining term of
the Notes, and the actual receipt of future payments of stated interest on the Notes would no longer be separately reported as taxable income. The total amount of OID related to the deferred payments that would accrue during the deferral period
would be approximately equal to the amount of the cash payment due immediately following the end of that period. Any OID included in income would increase such U.S. holder’s adjusted tax basis in its Notes, and its actual receipt of cash
interest payments would reduce that adjusted tax basis. Accordingly, if a U.S. holder sells a Note during a Deferral Period, although such U.S. holder will not receive any of the interest that accrued on that Note during the Deferral Period, such
U.S. holder will be required to report any OID accrued while it held such Note as income for U.S. federal income tax purposes. See “Certain U.S. Federal Income Tax Considerations”.

Further, if the likelihood of our exercise of the option to defer the payment of interest on the Notes were determined not to be
“remote” within the meaning of applicable U.S. Treasury regulations, the Notes could be treated as issued with OID at the time of issuance and all stated interest would be treated as OID as long as the Notes are outstanding. We believe
the likelihood that we exercise such option is remote. Accordingly, a U.S. holder generally will be required to recognize any stated interest as ordinary income in the manner described under “Certain U.S. Federal Income Tax Considerations—Stated Interest”. See “Certain U.S. Federal Income Tax Considerations”.

S-14

TRANSCANADA PIPELINES LIMITED

TCPL operates in two core businesses—Natural Gas Pipelines and Power and Energy Solutions. In order to provide information that is
aligned with how management decisions about our businesses are made and how performance of our businesses is assessed, our results are reflected in four operating segments: Canadian Natural Gas Pipelines, U.S. Natural Gas Pipelines, Mexico Natural
Gas Pipelines and Power and Energy Solutions. We also have a Corporate segment consisting of corporate and administrative