----

| Delaware                                                            |   | 52-2135448                                   |
|---------------------------------------------------------------------|--------|----------------------------------------------|
| (State      or other jurisdiction of incorporation or organization) |   | (I.R.S.      Employer Identification Number) |
|                                                                |   |                                         |

|  13710      FNB Parkway                  |   |            |
|-----------------------------------------------|--------|-----------------|
|  Omaha, Nebraska                         |   | 68154-5200      |
| (Address      of principal executive offices) |   | (Zip      code) |

|   |  877-290-2772                                              |   |
|--------|-----------------------------------------------------------------|--------|
|   |  (Registrant's      telephone number, including area code) |   |

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|                   |                                                                                                                                    | Page      No. |
|------------------------|-----------------------------------------------------------------------------------------------------------------------------------------|---------------|
| TABLE      OF CONTENTS |
|                   |                                                                                                                                    |          |
| PART      I            | FINANCIAL      INFORMATION                                                                                                              |          |
|                   |                                                                                                                                    |          |
|                   | Glossary                                                                                                                                | 3             |
|                   |                                                                                                                                    |          |
| Item      1.           | Financial      Statements                                                                                                               |          |
|                   |                                                                                                                                    |          |
|                   | Consolidated      Statement of Income – Three and nine months ended September 30,      2008 and 2007                    | 4             |
|                   | Consolidated      Statement of Comprehensive Income – Three and nine months ended      September 30, 2008      and 2007 | 4             |
|                   | Consolidated      Balance Sheet – September 30, 2008 and December 31,      2007                                         | 5             |
|                   | Consolidated      Statement of Cash Flows – Nine months ended September 30,      2008 and 2007                     | 6             |
|                   | Consolidated      Statement of Changes in Partners’ Equity – Nine months ended      September 30, 2008            | 7             |
|                   | Notes      to Consolidated Financial Statements                                                                                         | 8             |
|                   |                                                                                                                                    |          |
| Item      2.           | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations                                   | 15            |
|                   |                                                                                                                                    |          |
|                   | Results      of Operations of TC PipeLines                                                                                              | 21            |
|                   | Liquidity      and Capital Resources of TC PipeLines                                                                                    | 25            |
|                   | Liquidity      and Capital Resources of our Pipeline Systems                                                                            | 27            |
|                   |                                                                                                                                    |          |
| Item      3.           | Quantitative      and Qualitative Disclosures About Market Risk                                                                         | 29            |
|                   |                                                                                                                                    |          |
| Item      4.           | Controls      and Procedures                                                                                                            | 30            |
|                   |                                                                                                                                    |          |
| PART      II           | OTHER      INFORMATION                                                                                                                  |          |
|                   |                                                                                                                                    |          |
| Item      1A.          | Risk      Factors                                                                                                                       | 31            |
|                   |                                                                                                                                    |          |
| Item      6.           | Exhibits                                                                                                                                | 33            |

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| ANR  ……………………………...... | ANR      Pipeline Company                                             |
|----------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------|
| Bcf/d……………………………......           | Billion      cubic feet per day                                       |
| Bison      Project…………………......                     | Bison      Pipeline Project                                           |
| Chicago      IV.........................................                                           |  Northern      Border's proposed expansion project               |
| Collar      Agreement.............................                                            |  Northern      Border's zero cost interest rate collar agreement |
| DCF……………………………........           | Discounted      cash flow                                             |
| Dth/d……………………………......           | Dekatherms      per day                                               |
| FASB…………………………..........               | Financial      Accounting Standards Board                             |
| FERC…………………………..........               | Federal      Energy Regulatory Commission                             |
| GAAP…………………………........                 | U.S.      generally accepted accounting principles                    |
| GLGT.............…………………........                         | Great      Lakes Gas Transmission Limited Partnership                 |
| Great      Lakes......................................                                             | Great      Lakes Gas Transmission Limited Partnership            |
| INGAA…………………………........                | Interstate      Natural Gas Association of America                    |
| LIBOR…………………………........                | London      Interbank Offered Rate                                    |
| MLP……………………………........           | Master      Limited Partnership                                       |
| MMcf/d……………………….........                     | Million      cubic feet per day                                       |
| NBPC……………………….............                   | Northern      Border Pipeline Company                                 |
| Northern      Border……………….......                              | Northern      Border Pipeline Company                                 |
| Our      pipeline systems………….......                                       | Great      Lakes, Northern Border and Tuscarora                       |
| Partnership…………………............                      | TC      PipeLines, LP and its subsidiaries                            |
| Pathfinder      Project.............................                                               |  Pathfinder      Pipeline Project                                |
| REX      East…………………………...        | Eastern      segment of the Rockies Express Pipeline                  |
| REX      West…………………………..              | Western      segment of the Rockies Express Pipeline                  |
| ROE……………………………........           | Return      on equity                                                 |
| ROFR...................................................                                            |  Right      of first refusal                                     |
| SEC…………………………….........          | Securities      and Exchange Commission                               |
| SFAS…………………………..........               | Statement      of Financial Accounting Standards                      |
| TC      Pipelines………………………..            | TC      PipeLines, LP and its subsidiaries                            |
| TCNB………………………….........                | TransCanada      Northern Border Inc.                                 |
| TGTC..................................................                                             |  Tuscarora      Gas Transmission Company                         |
| TransCanada…………………........                               | TransCanada      Corporation and its subsidiaries                     |
| TSA.....................................................                                      | Transportation      Security Administration                           |
| Tuscarora………………………......                     | Tuscarora      Gas Transmission Company                               |
| U.S……………………………..........         | United      States of America                                         |
| WCSB…………………………........                 | Western      Canada Sedimentary Basin                                 |

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|  (unaudited)                                              |   | Three      months ended September      30, |   | Nine      months ended September      30, |   |
|----------------------------------------------------------------|--------|-------------------------------------------------|--------|------------------------------------------------|--------|
| (millions      of dollars except per common unit amounts)      |   | 2008                                            |   |                                           | 2007   |   |   | 2008 |   |   | 2007 |   |
|                                                           |   |                                            |   |                                           |   |   |   |   |   |   |   |   |
| Equity      income from investment in Great Lakes (Note 2)     |   |                                            | 12.0   |                                           |   |   | 14.2 |   |   |   | 44.4 |   |   |   | 34.3 |   |
| Equity      income from investment in Northern Border (Note 3) |   |                                            | 19.9   |                                           |   |   | 16.2 |   |   |   | 48.1 |   |   |   | 44.3 |   |
| Transmission      revenues                                     |   |                                            | 8.2    |                                           |   |   | 6.7 |   |   |   | 23.3 |   |   |   | 20.3 |   |
| Operating      expenses                                        |   |                                            | (2.3   | )                                              |   |   | (2.2 | ) |   |   | (6.8 | ) |   |   | (6.4 | ) |
| Depreciation                                                   |   |                                            | (1.8   | )                                              |   |   | (1.6 | ) |   |   | (5.1 | ) |   |   | (4.7 | ) |
| Financial      charges, net and other                          |   |                                            | (7.7   | )                                              |   |   | (8.7 | ) |   |   | (22.8 | ) |   |   | (25.5 | ) |
| Net      income                                                |   |                                            | 28.3   |                                           |   |   | 24.6 |   |   |   | 81.1 |   |   |   | 62.3 |   |
|                                                           |   |                                            |   |                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income allocation                                     |   |                                            |   |                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Common      units                                              |   |                                            | 25.1   |                                           |   |   | 22.4 |   |   |   | 72.5 |   |   |   | 57.0 |   |
| General      partner                                           |   |                                            | 3.2    |                                           |   |   | 2.2 |   |   |   | 8.6 |   |   |   | 5.3 |   |
|                                                           |   |                                            | 28.3   |                                           |   |   | 24.6 |   |   |   | 81.1 |   |   |   | 62.3 |   |
|                                                           |   |                                            |   |                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income per common unit (Note 6)                       |   | $                                               | 0.72   |                                           |   | $ | 0.64 |   |   | $ | 2.08 |   |   | $ | 1.81 |   |
|                                                           |   |                                            |   |                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common units      outstanding (millions)      |   |                                            | 34.9   |                                           |   |   | 34.9 |   |   |   | 34.9 |   |   |   | 31.5 |   |
|                                                           |   |                                            |   |                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Common units outstanding, end      of the period (millions)    |   |                                            | 34.9   |                                           |   |   | 34.9 |   |   |   | 34.9 |   |   |   | 34.9 |   |

|  (unaudited)                                                               |   | Three      months endedSeptember      30, |   |   | Nine      months endedSeptember      30, |   |
|---------------------------------------------------------------------------------|--------|-------------------------------------------|--------|--------|------------------------------------------|--------|
| (millions      of dollars)                                                      |   | 2008                                      |   |   | 2007                                     |   |   | 2008 |   |   | 2007 |   |
|                                                                            |   |                                      |   |   |                                     |   |   |   |   |   |   |   |
| Net      income                                                                 |   |                                      | 28.3   |   |                                     |   | 24.6 |   |   |   | 81.1 |   |   |   | 62.3 |   |
| Other      comprehensive loss                                                   |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
|    Change      associated with hedging transactions (Note 9)     |   |                                      | (1.3   | )      |                                     |   | (7.0 | ) |   |   | (1.7 | ) |   |   | (2.3 | ) |
|    Change      associated with hedging transactions of investees |   |                                      | -      |   |                                     |   | (0.5 | ) |   |   | (0.7 | ) |   |   | (0.9 | ) |
|                                                                            |   |                                      | (1.3   | )      |                                     |   | (7.5 | ) |   |   | (2.4 | ) |   |   | (3.2 | ) |
| Total      comprehensive income                                                 |   |                                      | 27.0   |   |                                     |   | 17.1 |   |   |   | 78.7 |   |   |   | 59.1 |   |
|                                                                            |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| See      accompanying notes to the consolidated financial    statements.        |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |

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| (unaudited)                                                                                   |   |                    |    |   |                   |   |
|-----------------------------------------------------------------------------------------------|--------|-------------------------|---------|--------|------------------------|--------|
| (millions      of dollars)                                                                    |   | September      30, 2008 |    |   | December      31, 2007 |   |
| ASSETS                                                                                        |   |                    |    |   |                   |   |
| Current      Assets                                                                           |   |                    |    |   |                   |   |
|      Cash      and short-term investments                            |   |                    | 11.0    |   |                   |   | 7.5 |   |
|      Accounts      receivable and other                              |   |                    | 3.7     |   |                   |   | 4.2 |   |
|                                                                                          |   |                    | 14.7    |   |                   |   | 11.7 |   |
| Investment      in Great Lakes (Note 2)                                                       |   |                    | 710.5   |   |                   |   | 721.1 |   |
| Investment      in Northern Border (Note 3)                                                   |   |                    | 517.2   |   |                   |   | 541.9 |   |
| Plant,      property and equipment (net of $66.8 accumulated depreciation, 2007 -      $61.7) |   |                    | 135.6   |   |                   |   | 134.1 |   |
| Goodwill                                                                                      |   |                    | 81.7    |   |                   |   | 81.7 |   |
| Other      assets                                                                             |   |                    | 1.6     |   |                   |   | 2.1 |   |
|                                                                                          |   |                    | 1,461.3 |   |                   |   | 1,492.6 |   |
|                                                                                          |   |                    |    |   |                   |   |   |   |
| LIABILITIES      AND PARTNERS' EQUITY                                                         |   |                    |    |   |                   |   |   |   |
| Current      Liabilities                                                                      |   |                    |    |   |                   |   |   |   |
|      Bank      indebtedness                                          |   |                    | -       |   |                   |   | 1.4 |   |
|      Accounts      payable                                           |   |                    | 2.2     |   |                   |   | 4.8 |   |
|      Accrued      interest                                           |   |                    | 3.5     |   |                   |   | 3.0 |   |
|      Current      portion of long-term debt (Note 5)                 |   |                    | 4.5     |   |                   |   | 4.6 |   |
|      Other      current liabilities                                  |   |                    | 0.5     |   |                   |   | - |   |
|                                                                                          |   |                    | 10.7    |   |                   |   | 13.8 |   |
| Other      long-term liabilities                                                              |   |                    | 11.0    |   |                   |   | 9.9 |   |
| Long-term      debt (Note 5)                                                                  |   |                    | 541.6   |   |                   |   | 568.8 |   |
|                                                                                          |   |                    | 563.3   |   |                   |   | 592.5 |   |
| Partners'      Equity                                                                         |   |                    |    |   |                   |   |   |   |
|      Common      units                                               |   |                    | 892.6   |   |                   |   | 892.3 |   |
|      General      partner                                            |   |                    | 19.1    |   |                   |   | 19.1 |   |
|      Accumulated      other comprehensive loss                       |   |                    | (13.7   | )      |                   |   | (11.3 | ) |
|                                                                                          |   |                    | 898.0   |   |                   |   | 900.1 |   |
|                                                                                          |   |                    | 1,461.3 |   |                   |   | 1,492.6 |   |

|                                                                     |   |   |   |
|--------------------------------------------------------------------------|--------|--------|--------|
| Subsequent      events (Note 12)                                         |   |   |   |
|                                                                     |   |   |   |
| See      accompanying notes to the consolidated financial    statements. |   |   |

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| (unaudited)                                                                |   | Nine      months ended September 30, |   |
|----------------------------------------------------------------------------|--------|--------------------------------------|--------|
| (millions      of dollars)                                                 |   | 2008                                 |   |   | 2007 |   |
|                                                                       |   |                                 |   |   |   |   |
| CASH      GENERATED FROM OPERATIONS                                        |   |                                 |   |   |   |   |
| Net      income                                                            |   |                                 | 81.1   |   |   |   | 62.3 |   |
| Depreciation                                                               |   |                                 | 5.1    |   |   |   | 4.7 |   |
| Amortization      of other assets                                          |   |                                 | 0.4    |   |   |   | 0.3 |   |
| Non-controlling      interests                                             |   |                                 | -      |   |   |   | 0.2 |   |
| Increase      in long-term liabilities                                     |   |                                 | 0.1    |   |   |   | - |   |
| Equity      allowance for funds used during construction                   |   |                                 | (0.2   | ) |   |   | - |   |
| Increase      in operating working capital (Note 10)                       |   |                                 | (0.2   | ) |   |   | (0.7 | ) |
|                                                                       |   |                                 | 86.3   |   |   |   | 66.8 |   |
|                                                                       |   |                                 |   |   |   |   |   |   |
| INVESTING      ACTIVITIES                                                  |   |                                 |   |   |   |   |   |   |
| Return      of capital from Great Lakes (Note 2)                           |   |                                 | 10.6   |   |   |   | 6.7 |   |
| Return      of capital from Northern Border (Note 3)                       |   |                                 | 23.9   |   |   |   | 18.2 |   |
| Investment      in Great Lakes (Note 2)                                    |   |                                 | -      |   |   |   | (733.0 | ) |
| Investment      in Northern Border (Note 3)                                |   |                                 | -      |   |   |   | (7.5 | ) |
| Capital      expenditures                                                  |   |                                 | (6.4   | ) |   |   | (4.4 | ) |
| Other      assets                                                          |   |                                 | -      |   |   |   | (1.1 | ) |
| (Increase)/decrease      in investing working capital (Note 10)            |   |                                 | (2.8   | ) |   |   | 1.2 |   |
|                                                                       |   |                                 | 25.3   |   |   |   | (719.9 | ) |
|                                                                       |   |                                 |   |   |   |   |   |   |
| FINANCING      ACTIVITIES                                                  |   |                                 |   |   |   |   |   |   |
| Distributions      paid                                                    |   |                                 | (80.8  | ) |   |   | (61.3 | ) |
| Equity      issuances, net                                                 |   |                                 | -      |   |   |   | 607.0 |   |
| Long-term      debt issued                                                 |   |                                 | 4.0    |   |   |   | 152.5 |   |
| Long-term      debt repaid (Note 5)                                        |   |                                 | (31.3  | ) |   |   | (34.9 | ) |
|                                                                       |   |                                 | (108.1 | ) |   |   | 663.3 |   |
|                                                                       |   |                                 |   |   |   |   |   |   |
| Increase      in cash and short-term investments                           |   |                                 | 3.5    |   |   |   | 10.2 |   |
| Cash      and short-term investments, beginning of period                  |   |                                 | 7.5    |   |   |   | 4.6 |   |
|                                                                       |   |                                 |   |   |   |   |   |   |
| Cash      and short-term investments, end of period                        |   |                                 | 11.0   |   |   |   | 14.8 |   |
|                                                                       |   |                                 |   |   |   |   |   |   |
| Interest      payments made                                                |   |                                 | 17.9   |   |   |   | 23.9 |   |
|                                                                       |   |                                 |   |   |   |   |   |   |
| See      accompanying notes to the consolidated      financial statements. |   |                                 |   |   |   |   |   |   |

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| (unaudited)                                 |   | Common      Units |   |             | General      Partner |   |             | Accumulated      Other Comprehensive Loss (1) |   | Partners'      Equity |   |
|---------------------------------------------|--------|-------------------|--------|------------------|----------------------|--------|------------------|-----------------------------------------------|--------|-----------------------|--------|
|                                        |   | (millions         |   | (millions        |                 |   | (millions        |                                          |   | (millions             |   |   | (millions |   | (millions |   |
|                                        |   | of      units)    |   | of      dollars) |                 |   | of      dollars) |                                          |   | of      dollars)      |   |   | of      units) |   | of      dollars) |   |
|                                        |   |              |   |             |                 |   |             |                                          |   |                  |   |   |   |   |   |   |   |   |
| Partners'      equity at December 31, 2007  |   |              | 34.9   |             |                 |   | 892.3            |                                          |   |                  | 19.1   |   |   |   | (11.3 | ) |   |   | 34.9 |   |   |   | 900.1 |   |
| Net      income                             |   |              | -      |             |                 |   | 72.5             |                                          |   |                  | 8.6    |   |   |   | - |   |   |   | - |   |   |   | 81.1 |   |
| Distributions      paid                     |   |              | -      |             |                 |   | (72.2            | )                                             |   |                  | (8.6   | ) |   |   | - |   |   |   | - |   |   |   | (80.8 | ) |
| Other      comprehensive loss               |   |              | -      |             |                 |   | -                |                                          |   |                  | -      |   |   |   | (2.4 | ) |   |   | - |   |   |   | (2.4 | ) |
| Partners'      equity at September 30, 2008 |   |              | 34.9   |             |                 |   | 892.6            |                                          |   |                  | 19.1   |   |   |   | (13.7 | ) |   |   | 34.9 |   |   |   | 898.0 |   |
|                                        |   |              |   |             |                 |   |             |                                          |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (1) | TC PipeLines, LP      uses derivatives to assist in managing its exposure to interest rate risk.      Based on interest rates at September 30, 2008, the amount of losses      related to cash flow hedges reported in accumulated other comprehensive      income that will be reclassified to net income in the next 12 months is      $3.8 million, which will be offset by a reduction to interest expense of a      similar amount.  |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
|--------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| See      accompanying notes to the consolidated financial    statements. |   |   |   |   |   |   |   |   |   |   |   |   |   |

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| Note 1 | Organization and Significant      Accounting Policies |
|--------|-------------------------------------------------------|

| Note 2 | Investment in Great      Lakes |
|--------|--------------------------------|

|  Summarized      Consolidated Great Lakes Income Statement(unaudited) |   | Three      months ended September      30, |   |   |        Nine      months ended      September      30, |   |   | For      the periodFebruary 23      toSeptember      30, |   |
|----------------------------------------------------------------------------|--------|--------------------------------------------|--------|--------|------------------------------------------------------------|--------|--------|----------------------------------------------------------|--------|
| (millions      of dollars)                                                 |   | 2008                                       |   |   | 2007                                                       |   |   | 2008                                                     |   |   | 2007 |   |
| Transmission      revenues                                                 |   |                                       | 66.7   |   |                                                       |   | 65.6   |                                                     |   |   | 213.9 |   |   |   | 162.2 |   |
| Operating      expenses                                                    |   |                                       | (17.1  | )      |                                                       |   | (12.6  | )                                                        |   |   | (45.9 | ) |   |   | (34.0 | ) |
| Depreciation                                                               |   |                                       | (14.7  | )      |                                                       |   | (14.5  | )                                                        |   |   | (43.9 | ) |   |   | (34.9 | ) |
| Financial      charges, net and other                                      |   |                                       | (8.0   | )      |                                                       |   | (8.1   | )                                                        |   |   | (24.4 | ) |   |   | (19.5 | ) |
| Michigan      business tax                                                 |   |                                       | (1.2   | )      |                                                       |   | -      |                                                     |   |   | (4.2 | ) |   |   | - |   |
| Net      income                                                            |   |                                       | 25.7   |   |                                                       |   | 30.4   |                                                     |   |   | 95.5 |   |   |   | 73.8 |   |

----

| Summarized      Consolidated Great Lakes Balance Sheet |   |               |    |   |              |   |
|--------------------------------------------------------|--------|--------------------|---------|--------|-------------------|--------|
| (unaudited)                                            |   | September      30, |    |   | December      31, |   |
| (millions      of dollars)                             |   | 2008               |    |   | 2007              |   |
| Assets                                                 |   |               |    |   |              |   |
| Cash      and short-term investments                   |   |               | 1.1     |   |              |   | 32.0 |   |
| Other      current assets                              |   |               | 100.6   |   |              |   | 55.5 |   |
| Plant,      property and equipment, net                |   |               | 931.9   |   |              |   | 969.2 |   |
|                                                   |   |               | 1,033.6 |   |              |   | 1,056.7 |   |
| Liabilities      and Partners' Equity                  |   |               |    |   |              |   |   |   |
| Current      liabilities                               |   |               | 49.0    |   |              |   | 50.7 |   |
| Deferred      credits                                  |   |               | 1.7     |   |              |   | 0.4 |   |
| Long-term      debt, including current maturities      |   |               | 440.0   |   |              |   | 440.0 |   |
| Partners'      capital                                 |   |               | 542.9   |   |              |   | 565.6 |   |
|                                                   |   |               | 1,033.6 |   |              |   | 1,056.7 |   |

| Note 3 | Investment in Northern      Border |
|--------|------------------------------------|

| Summarized      Northern Border Income Statement(unaudited) |   | Three      months endedSeptember      30, |   |   | Nine      months endedSeptember      30, |   |
|-------------------------------------------------------------|--------|-------------------------------------------|--------|--------|------------------------------------------|--------|
| (millions of dollars)                                       |   | 2008                                      |   |   | 2007                                     |   |   | 2008 |   |   | 2007 |   |
| Transmission      revenues                                  |   |                                      | 67.7   |   |                                     |   | 79.6 |   |   |   | 212.8 |   |   |   | 228.0 |   |
| Operating      expenses                                     |   |                                      | (19.3  | )      |                                     |   | (21.6 | ) |   |   | (57.5 | ) |   |   | (61.7 | ) |
| Depreciation                                                |   |                                      | (15.3  | )      |                                     |   | (15.1 | ) |   |   | (45.8 | ) |   |   | (45.6 | ) |
| Financial      charges, net and other                       |   |                                      | 7.1    |   |                                     |   | (10.2 | ) |   |   | (12.1 | ) |   |   | (30.9 | ) |
| Net      income                                             |   |                                      | 40.2   |   |                                     |   | 32.7 |   |   |   | 97.4 |   |   |   | 89.8 |   |

| Summarized      Northern Border Balance Sheet                           |   |               |    |   |              |   |
|-------------------------------------------------------------------------|--------|--------------------|---------|--------|-------------------|--------|
| (unaudited)                                                             |   | September      30, |    |   | December      31, |   |
| (millions      of dollars)                                              |   | 2008               |    |   | 2007              |   |
| Assets                                                                  |   |               |    |   |              |   |
| Cash      and short-term investments                                    |   |               | 18.6    |   |              |   | 22.9 |   |
| Other      current assets                                               |   |               | 31.1    |   |              |   | 39.8 |   |
| Plant,      property and equipment, net                                 |   |               | 1,398.3 |   |              |   | 1,428.3 |   |
| Other      assets                                                       |   |               | 25.5    |   |              |   | 23.9 |   |
|                                                                    |   |               | 1,473.5 |   |              |   | 1,514.9 |   |
| Liabilities      and Partners' Equity                                   |   |               |    |   |              |   |   |   |
| Current      liabilities                                                |   |               | 53.0    |   |              |   | 53.4 |   |
| Deferred      credits and other                                         |   |               | 9.2     |   |              |   | 8.1 |   |
| Long-term      debt, including current maturities                       |   |               | 621.4   |   |              |   | 615.3 |   |
| Partners'      equity                                                   |   |               |    |   |              |   |   |   |
|      Partners'      capital                    |   |               | 793.8   |   |              |   | 840.5 |   |
|      Accumulated      other comprehensive loss |   |               | (3.9    | )      |              |   | (2.4 | ) |
|                                                                    |   |               | 1,473.5 |   |              |   | 1,514.9 |   |

----

| Note 4 | Investment in      Tuscarora |
|--------|------------------------------|

| Summarized      Tuscarora Income Statement(unaudited) |   | Three      months ended September      30, |   |   | Nine      months ended September      30, |   |
|-------------------------------------------------------|--------|-------------------------------------------------|--------|--------|------------------------------------------------|--------|
| (millions      of dollars)                            |   | 2008                                            |   |   | 2007                                           |   |   | 2008 |   |   | 2007 |   |
| Transmission      revenues                            |   |                                            | 8.2    |   |                                           |   | 6.7 |   |   |   | 23.3 |   |   |   | 20.3 |   |
| Operating      expenses                               |   |                                            | (1.4   | )      |                                           |   | (1.2 | ) |   |   | (3.7 | ) |   |   | (3.7 | ) |
| Depreciation                                          |   |                                            | (1.8   | )      |                                           |   | (1.6 | ) |   |   | (5.1 | ) |   |   | (4.7 | ) |
| Financial      charges, net and other                 |   |                                            | (1.1   | )      |                                           |   | (1.0 | ) |   |   | (3.1 | ) |   |   | (3.4 | ) |
| Net      income                                       |   |                                            | 3.9    |   |                                           |   | 2.9 |   |   |   | 11.4 |   |   |   | 8.5 |   |

| Summarized      Tuscarora Balance Sheet(unaudited) |   | September      30, |   |   | December      31, |   |
|----------------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|
| (millions      of dollars)                         |   | 2008               |   |   | 2007              |   |
| Assets                                             |   |               |   |   |              |   |
| Cash      and short-term investments               |   |               | -      |   |              |   | 6.1 |   |
| Other      current assets                          |   |               | 13.6   |   |              |   | 2.6 |   |
| Plant,      property and equipment, net            |   |               | 135.6  |   |              |   | 134.1 |   |
| Other      assets                                  |   |               | 0.3    |   |              |   | 0.6 |   |
|                                               |   |               | 149.5  |   |              |   | 143.4 |   |
| Liabilities      and Partners' Equity              |   |               |   |   |              |   |   |   |
| Current      liabilities                           |   |               | 3.1    |   |              |   | 6.1 |   |
| Long-term      debt, including current maturities  |   |               | 64.1   |   |              |   | 66.4 |   |
| Partners'      capital                             |   |               | 82.3   |   |              |   | 70.9 |   |
|                                               |   |               | 149.5  |   |              |   | 143.4 |   |

| Summarized      Tuscarora Cash Flow Statement(unaudited)    |   | Three      months ended September      30, |   |   | Nine      months ended September      30, |   |
|-------------------------------------------------------------|--------|-------------------------------------------------|--------|--------|------------------------------------------------|--------|
| (millions      of dollars)                                  |   | 2008                                            |   |   | 2007                                           |   |   | 2008 |   |   | 2007 |   |
| Cash      flows provided by operating activities            |   |                                            | 7.2    |   |                                           |   | 4.6 |   |   |   | 17.3 |   |   |   | 13.5 |   |
| Cash      flows (used in)/provided by investing activities  |   |                                            | (1.3   | )      |                                           |   | 0.6 |   |   |   | (9.2 | ) |   |   | (3.1 | ) |
| Cash      flows used in financing activities                |   |                                            | (5.8   | )      |                                           |   | - |   |   |   | (14.2 | ) |   |   | (2.4 | ) |
| Increase/(decrease)      in cash and short-term investments |   |                                            | -      |   |                                           |   | 5.2 |   |   |   | (6.1 | ) |   |   | 8.0 |   |
| Cash      and short-term investments, beginning of period   |   |                                            | -      |   |                                           |   | 5.7 |   |   |   | 6.1 |   |   |   | 2.9 |   |
| Cash      and short-term investments, end of period         |   |                                            | -      |   |                                           |   | 10.9 |   |   |   | - |   |   |   | 10.9 |   |

----

| Note 5 | Credit Facility and Long-Term      Debt |
|--------|-----------------------------------------|

| (unaudited)                               |   | September      30, |   |   | December      31, |   |
|-------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|
| (millions      of dollars)                |   | 2008               |   |   | 2007              |   |
|                                      |   |               |   |   |              |   |
| Senior      Credit Facility               |   |               | 482.0  |   |              |   | 507.0 |   |
| 7.13%      Series A Senior Notes due 2010 |   |               | 52.9   |   |              |   | 54.5 |   |
| 7.99%      Series B Senior Notes due 2010 |   |               | 5.3    |   |              |   | 5.5 |   |
| 6.89%      Series C Senior Notes due 2012 |   |               | 5.9    |   |              |   | 6.4 |   |
|                                      |   |               | 546.1  |   |              |   | 573.4 |   |

| Note 6 | Net Income per Common      Unit |
|--------|---------------------------------|

| (unaudited)                                                      |   | Three      months ended September      30, |   |   | Nine      months ended September      30, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|--------|--------|------------------------------------------------|--------|
| (millions      of dollars except per unit)                                                                                                                                                                                                                                                                                                |   | 2008                                            |   |   | 2007                                           |   |   | 2008 |   |   | 2007 |   |
| Net      income                                                                                                                                                                                                                                                                                                                           |   |                                            | 28.3   |   |                                           |   | 24.6 |   |   |   | 81.1 |   |   |   | 62.3 |   |
| Net      income allocated to general partner                                                                                                                                                                                                                                                                                              |   |                                            |   |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
|    General      partner interest                                                                                                                                                                                                                                                                                           |   |                                            | (0.6   | )      |                                           |   | (0.4 | ) |   |   | (1.6 | ) |   |   | (1.2 | ) |
|    Incentive      distribution income allocation                                                                                                                                                                                                                                                                           |   |                                            | (2.6   | )      |                                           |   | (1.8 | ) |   |   | (7.0 | ) |   |   | (4.1 | ) |
|                                                                                                                                                                                                                                                                                                                                      |   |                                            | (3.2   | )      |                                           |   | (2.2 | ) |   |   | (8.6 | ) |   |   | (5.3 | ) |
| Net      income allocable to common units                                                                                                                                                                                                                                                                                                 |   |                                            | 25.1   |   |                                           |   | 22.4 |   |   |   | 72.5 |   |   |   | 57.0 |   |
| Weighted      average common units outstanding (millions)                                                                                                                                                                                                                                                                                 |   |                                            | 34.9   |   |                                           |   | 34.9 |   |   |   | 34.9 |   |   |   | 31.5 |   |
| Net      income per common unit                                                                                                                                                                                                                                                                                                           |   | $                                               | 0.72   |   |                                           | $      | 0.64 |   |   | $ | 2.08 |   |   | $ | 1.81 |   |

| Note 7 | Cash    Distributions |
|--------|-----------------------|

----

| Note 8 | Related Party      Transactions |
|--------|---------------------------------|

| (unaudited)                                                                                                                                                                                                     |   | Three      months ended September      30, |   |   | Nine      months ended September      30, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|--------|--------|------------------------------------------------|--------|
| (millions      of dollars)                                                                                                                                                                                      |   | 2008                                            |   |   | 2007                                           |   |   | 2008 |   |   | 2007      (1) |   |
|                                                                                                                                                                                                            |   |                                            |   |   |                                           |   |   |   |   |   |   |   |
| Costs      charged by TransCanada and its affiliates:                                                                                                                                                           |   |                                            |   |   |                                           |   |   |   |   |   |
|      Great      Lakes                                                                                                                                                                  |   |                                            | 8.2    |   |                                           |   | 5.2 |   |   |   | 23.4 |   |   |   | 22.2 |   |
|      Northern      Border                                                                                                                                                              |   |                                            | 7.5    |   |                                           |   | 7.4 |   |   |   | 23.5 |   |   |   | 14.9 |   |
|      Tuscarora                                                                                                                                                                         |   |                                            | 0.9    |   |                                           |   | 0.8 |   |   |   | 2.9 |   |   |   | 1.7 |   |
| Impact      on the Partnership's net income:                                                                                                                                                                    |   |                                            |   |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
|      Great      Lakes                                                                                                                                                                  |   |                                            | 3.6    |   |                                           |   | 2.4 |   |   |   | 10.1 |   |   |   | 10.3 |   |
|      Northern      Border                                                                                                                                                              |   |                                            | 3.2    |   |                                           |   | 3.7 |   |   |   | 9.6 |   |   |   | 7.5 |   |
|      Tuscarora                                                                                                                                                                         |   |                                            | 0.7    |   |                                           |   | 0.8 |   |   |   | 2.0 |   |   |   | 1.7 |   |
|                                                                                                                                                                                                            |   |                                            |   |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
| (1)      The amounts disclosed for Great Lakes are for the period February 23 to      September 30, 2007. The amounts disclosed for Northern Border are for      the period April 1 to September 30, 2007. |   |

|                                                |   |               |   |   |              |   |   |
|-----------------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|--------|
| (unaudited)                                         |   | September      30, |   |   | December      31, |
| (millions      of dollars)                          |   | 2008               |   |   | 2007              |
|                                                |   |               |   |   |              |   |   |
| Amount      owed to TransCanada and its affiliates: |   |               |   |   |
|      Great      Lakes      |   |               | 8.1    |   |              |   | 1.9    |
|      Northern      Border  |   |               | 5.1    |   |              |   | 3.0    |
|      Tuscarora             |   |               | 0.5    |   |              |   | 3.5    |

----

| Note 9 | Derivative Financial      Instruments |
|--------|---------------------------------------|

| Note 10 | Changes in Working      Capital |
|---------|---------------------------------|

| (unaudited)                                               |   | Nine      months ended September 30, |   |
|-----------------------------------------------------------|--------|--------------------------------------|--------|
| (millions      of dollars)                                |   | 2008                                 |   |   | 2007 |   |
|                                                      |   |                                 |   |   |   |   |
| Decrease/(increase)      in accounts receivable and other |   |                                 | 0.5    |   |   |   | (2.4 | ) |
| Decrease      in bank indebtedness                        |   |                                 | (1.4   | ) |   |   | - |   |
| Decrease      in accounts payable                         |   |                                 | (2.6   | ) |   |   | (0.3 | ) |
| Increase      in accrued interest                         |   |                                 | 0.5    |   |   |   | 3.2 |   |
|                                                      |   |                                 | (3.0   | ) |   |   | 0.5 |   |

| Note 11 | Accounting      Pronouncements |
|---------|--------------------------------|

----

| Note 12 | Subsequent    Events |
|---------|----------------------|

----

| ·   | the      ability of Great Lakes and Northern Border to continue to make      distributions at their currentlevels; |
|--------------------|--------------------------------------------------------------------------------------------------------------------|

| ·   | the      impact of unsold capacity on Great Lakes and Northern Border being greater      or less than expected; |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | competitive      conditions in our industry and the ability of our pipeline systems to      market pipeline capacity on favorable terms, which is affected      by: |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | future      demand for and prices of naturalgas; |
|---------------|--------------------------------------------------|

| o   | competitive      conditions in the overall natural gas and electricity    markets; |
|---------------|------------------------------------------------------------------------------------|

| o   | availability      of supplies of Canadian and United States (U.S.) natural    gas; |
|---------------|------------------------------------------------------------------------------------|

| o   | the      oversupply of natural gas in the Mid-continent  market; |
|---------------|------------------------------------------------------------------|

| o   | availability      of additional storage capacity and current storage  levels; |
|---------------|-------------------------------------------------------------------------------|

| o   | weather      conditions; |
|---------------|--------------------------|

| o   | competitive      developments by Canadian and U.S. natural gas transmission companies,      including the construction of the Eastern segment of the Rockies Express      Pipeline (REX East) to Clarington, Ohio;and |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | development      of newly discovered natural gas plays such as the Horn River and Montney      shale gas plays in Western Canada, the Louisiana Haynesville shale gas      play, and the Marcellus shale gas play in West Virginia, Pennsylvania, and      New York. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      Alberta (Canada) government’s decision to implement a new royalty regime      effective January 2009 may affect the amount of exploration and      drilling in the Western Canada Sedimentary Basin  (WCSB); |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      decision by TransCanada to advance the Pathfinder Pipeline Project or the      Bison Pipeline Project and the regulatory, financing and construction      risks related to construction of interstate natural gas      pipelines; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      successful completion, timing, cost, scope and future financial      performance of our pipeline systems’ expansion projects could differ      materially from our expectations due to availability of contractors or      equipment, weather, difficulties or delays in obtaining regulatory      approvals or denied applications, land owner opposition, the lack of      adequate materials, labor difficulties or shortages, expansion costs that      are higher than anticipated and numerous other factors beyond our      control; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | performance      of contractual obligations by customers of our pipeline      systems; |
|--------------------|----------------------------------------------------------------------------------------|

| ·   | the      imposition of state income taxes on  partnerships; |
|--------------------|-------------------------------------------------------------|

| ·   | operating      hazards, natural disasters, weather-related delays, casualty losses and      other matters beyond our control; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      impact of current and future laws, rulings and governmental regulations,      particularly Federal Energy Regulatory Commission (FERC) regulations, on      us and our pipeline systems; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | our      ability to control operating costs;and |
|--------------------|-------------------------------------------------|

| ·   | prevailing      economic conditions, including the current uncertainty in the global      economic markets, that impact the capital and equity markets and our      ability to access these markets. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

----

| The      shaded areas in the tables below disclose the results from Great Lakes and      Northern Border, representing 100 per cent of each entity's operations for      the given period. |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (unaudited)                                                                                                                                                                                |   | For      the three months ended September 30, 2008 |   |   | For      the nine months ended September 30, 2008 |   |
| (millions      of dollars)                                                                                                                                                                 |   | PipeLP |   |   | TGTC(1) |   | Other |   |   | GLGT(2) |   |   | NBPC(3) |   | PipeLP |   |   | TGTC(1) |   | Other |   |   | GLGT(2) |   |   | NBPC(3) |   |
| Transmission      revenues                                                                                                                                                                 |   |   | 8.2 |   |   |   | 8.2 |   |   |   | - |   |   |   | 66.7 |   |   |   | 67.7 |   |   |   | 23.3 |   |   |   | 23.3 |   |   |   | - |   |   |   | 213.9 |   |   |   | 212.8 |   |
| Operating      expenses                                                                                                                                                                    |   |   | (2.3 | ) |   |   | (1.4 | ) |   |   | (0.9 | ) |   |   | (17.1 | ) |   |   | (19.3 | ) |   |   | (6.8 | ) |   |   | (3.7 | ) |   |   | (3.1 | ) |   |   | (45.9 | ) |   |   | (57.5 | ) |
|                                                                                                                                                                                       |   |   | 5.9 |   |   |   | 6.8 |   |   |   | (0.9 | ) |   |   | 49.6 |   |   |   | 48.4 |   |   |   | 16.5 |   |   |   | 19.6 |   |   |   | (3.1 | ) |   |   | 168.0 |   |   |   | 155.3 |   |
| Depreciation                                                                                                                                                                               |   |   | (1.8 | ) |   |   | (1.8 | ) |   |   | - |   |   |   | (14.7 | ) |   |   | (15.3 | ) |   |   | (5.1 | ) |   |   | (5.1 | ) |   |   | - |   |   |   | (43.9 | ) |   |   | (45.8 | ) |
| Financial      charges, net and other                                                                                                                                                      |   |   | (7.7 | ) |   |   | (1.1 | ) |   |   | (6.6 | ) |   |   | (8.0 | ) |   |   | 7.1 |   |   |   | (22.8 | ) |   |   | (3.1 | ) |   |   | (19.7 | ) |   |   | (24.4 | ) |   |   | (12.1 | ) |
| Michigan      business tax                                                                                                                                                                 |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (1.2 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (4.2 | ) |   |   | - |   |
|                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 25.7 |   |   |   | 40.2 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 95.5 |   |   |   | 97.4 |   |
| Equity      income                                                                                                                                                                         |   |   | 31.9 |   |   |   | - |   |   |   | - |   |   |   | 12.0 |   |   |   | 19.9 |   |   |   | 92.5 |   |   |   | - |   |   |   | - |   |   |   | 44.4 |   |   |   | 48.1 |   |
| Net      income                                                                                                                                                                            |   |   | 28.3 |   |   |   | 3.9 |   |   |   | (7.5 | ) |   |   | 12.0 |   |   |   | 19.9 |   |   |   | 81.1 |   |   |   | 11.4 |   |   |   | (22.8 | ) |   |   | 44.4 |   |   |   | 48.1 |   |
|                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                  |   |                                               |   |   |                                              |   |   |   |   |    |   |   |    |   |   |   |   |    |   |   |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|---------------------------------------|--------|----------------------------------------------------|--------|--------|---------------------------------------------------|--------|--------|--------|--------|---------|--------|--------|---------|--------|--------|--------|--------|---------|--------|--------|--------|--------|---------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| (unaudited)                           |   | For      the three months ended September 30, 2007 |   |   | For      the nine months ended September 30, 2007 |   |
| (millions      of dollars)            |   | PipeLP                                             |   |   | TGTC(1)                                           |   | Other  |   |   | GLGT(2) |   |   | NBPC(3) |   | PipeLP |   |   | TGTC(1) |   | Other  |   |   | GLGT(2) |   |   | NBPC(3) |   |
| Transmission      revenues            |   |                                               | 6.7    |   |                                              |   | 6.7    |   |   |    | -      |   |    |   | 65.6   |   |   |    | 79.6   |   |   |   | 20.3    |   |   |    | 20.3   |   |   |   | -      |   |   |   | 162.2  |   |   |   | 228.0  |   |
| Operating      expenses               |   |                                               | (2.2   | )      |                                              |   | (1.2   | )      |   |    | (1.0   | )      |    |   | (12.6  | )      |   |    | (21.6  | )      |   |   | (6.4    | )      |   |    | (3.7   | )      |   |   | (2.7   | )      |   |   | (34.0  | )      |   |   | (61.7  | )      |
|                                  |   |                                               | 4.5    |   |                                              |   | 5.5    |   |   |    | (1.0   | )      |    |   | 53.0   |   |   |    | 58.0   |   |   |   | 13.9    |   |   |    | 16.6   |   |   |   | (2.7   | )      |   |   | 128.2  |   |   |   | 166.3  |   |
| Depreciation                          |   |                                               | (1.6   | )      |                                              |   | (1.6   | )      |   |    | -      |   |    |   | (14.5  | )      |   |    | (15.1  | )      |   |   | (4.7    | )      |   |    | (4.7   | )      |   |   | -      |   |   |   | (34.9  | )      |   |   | (45.6  | )      |
| Financial      charges, net and other |   |                                               | (8.7   | )      |                                              |   | (1.0   | )      |   |    | (7.7   | )      |    |   | (8.1   | )      |   |    | (10.2  | )      |   |   | (25.5   | )      |   |    | (3.4   | )      |   |   | (22.1  | )      |   |   | (19.5  | )      |   |   | (30.9  | )      |
|                                  |   |                                               |   |   |                                              |   |   |   |   |    |   |   |    |   | 30.4   |   |   |    | 32.7   |   |   |   |    |   |   |    |   |   |   |   |   |   |   |   | 73.8   |   |   |   | 89.8   |   |
| Equity      income                    |   |                                               | 30.4   |   |                                              |   | -      |   |   |    | -      |   |    |   | 14.2   |   |   |    | 16.2   |   |   |   | 78.6    |   |   |    | -      |   |   |   | -      |   |   |   | 34.3   |   |   |   | 44.3   |   |
| Net      income                       |   |                                               | 24.6   |   |                                              |   | 2.9    |   |   |    | (8.7   | )      |    |   | 14.2   |   |   |    | 16.2   |   |   |   | 62.3    |   |   |    | 8.5    |   |   |   | (24.8  | )      |   |   | 34.3   |   |   |   | 44.3   |   |

----

----

| (unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                     |   | Three      months ended September      30, |   |   | Nine      months endedSeptember      30, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|--------|--------|------------------------------------------|--------|
| (millions      of dollars except per common unit amounts)                                                                                                                                                                                                                                                                                                                                                                       |   | 2008                                            |   |   | 2007                                     |   |   | 2008 |   |   | 2007 |   |
| Net      Income                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                            | 28.3   |   |                                     |   | 24.6 |   |   |   | 81.1 |   |   |   | 62.3 |   |
| Add:                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                            |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Cash      flows provided by Tuscarora's operating activities                                                                                                                                                                                                                                                                                                                                                                    |   |                                            | 7.2    |   |                                     |   | 4.6 |   |   |   | 17.3 |   |   |   | 13.5 |   |
| Cash      distributions from Great Lakes                                                                                                                                                                                                                                                                                                                                                                                        |   |                                            | 19.3   |   |                                     |   | 17.4 |   |   |   | 55.0 |   |   |   | 41.0 |   |
| Cash      distributions from Northern Border                                                                                                                                                                                                                                                                                                                                                                                    |   |                                            | 22.6   |   |                                     |   | 14.8 |   |   |   | 72.0 |   |   |   | 62.5 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                            | 49.1   |   |                                     |   | 36.8 |   |   |   | 144.3 |   |   |   | 117.0 |   |
| Less:                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                            |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Tuscarora's      net income                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                            | (3.9   | )      |                                     |   | (2.9 | ) |   |   | (11.4 | ) |   |   | (8.5 | ) |
| Equity      income from investment in Great Lakes                                                                                                                                                                                                                                                                                                                                                                               |   |                                            | (12.0  | )      |                                     |   | (14.2 | ) |   |   | (44.4 | ) |   |   | (34.3 | ) |
| Equity      income from investment in Northern Border                                                                                                                                                                                                                                                                                                                                                                           |   |                                            | (19.9  | )      |                                     |   | (16.2 | ) |   |   | (48.1 | ) |   |   | (44.3 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                            | (35.8  | )      |                                     |   | (33.3 | ) |   |   | (103.9 | ) |   |   | (87.1 | ) |
| Partnership      cash flows                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                            | 41.6   |   |                                     |   | 28.1 |   |   |   | 121.5 |   |   |   | 92.2 |   |
| Partnership      cash flows allocated to general partner (1)                                                                                                                                                                                                                                                                                                                                                                    |   |                                            | (3.2   | )      |                                     |   | (2.3 | ) |   |   | (8.6 | ) |   |   | (5.3 | ) |
| Partnership      cash flows allocated to common units                                                                                                                                                                                                                                                                                                                                                                           |   |                                            | 38.4   |   |                                     |   | 25.8 |   |   |   | 112.9 |   |   |   | 86.9 |   |
| Cash      distributions declared                                                                                                                                                                                                                                                                                                                                                                                                |   |                                            | (27.8  | )      |                                     |   | (25.4 | ) |   |   | (83.0 | ) |   |   | (75.4 | ) |
| Cash      distributions declared per common unit (2)                                                                                                                                                                                                                                                                                                                                                                            |   | $                                               | 0.705  |   |                                     | $      | 0.660 |   |   | $ | 2.110 |   |   | $ | 1.965 |   |
| Cash      distributions paid                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                            | (27.8  | )      |                                     |   | (25.1 | ) |   |   | (80.8 | ) |   |   | (61.3 | ) |
| Cash      distributions paid per common unit (2)                                                                                                                                                                                                                                                                                                                                                                                |   | $                                               | 0.705  |   |                                     | $      | 0.655 |   |   | $ | 2.070 |   |   | $ | 1.905 |   |
| Weighted      average common units outstanding (millions)                                                                                                                                                                                                                                                                                                                                                                       |   |                                            | 34.9   |   |                                     |   | 34.9 |   |   |   | 34.9 |   |   |   | 31.5 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                            |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| (1)      Partnership cash flows allocated to general partner represents the cash      distributions paid to the general partner with respect to its two per cent      interest plus an amount equal to incentive distributions.                                                                                                                                                                                                 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                            |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| (2)      Cash distributions declared per common unit and cash distributions paid      per common unit are computed by dividing cash distributions, after the      deduction of the general partner's allocation, by the number of common      units outstanding. The general partner's allocation is computed based upon      the general partner's two per cent interest plus an amount equal to      incentive distributions. |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                            |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |

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|                                      |   | Payments      Due by Period |   |
|-------------------------------------------|--------|-----------------------------|--------|
| (unaudited)(millions      of dollars)     |   | Total                       |   |   | Less      Than 1 Year |   |   | Long-term      Portion |   |
|                                      |   |                        |   |   |   |   |   |   |   |
| Senior      Credit Facility               |   |                        | 482.0  |   |   |   | - |   |   |   | 482.0 |   |
| 7.13%      Series A Senior Notes due 2010 |   |                        | 52.9   |   |   |   | 3.2 |   |   |   | 49.7 |   |
| 7.99%      Series B Senior Notes due 2010 |   |                        | 5.3    |   |   |   | 0.5 |   |   |   | 4.8 |   |
| 6.89%      Series C Senior Notes due 2012 |   |                        | 5.9    |   |   |   | 0.8 |   |   |   | 5.1 |   |
| Total                                     |   |                        | 546.1  |   |   |   | 4.5 |   |   |   | 541.6 |   |

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|                                            |   | Payments      Due by Period |   |
|-------------------------------------------------|--------|-----------------------------|--------|
| (unaudited)(millions      of dollars)           |   | Total                       |   |   | Less      than 1 year |   |   | Long-term      Portion |   |
|                                            |   |                        |   |   |   |   |   |   |   |
| 8.74%      series Senior Notes due 2008 to 2011 |   |                        | 40.0   |   |   |   | 10.0 |   |   |   | 30.0 |   |
| 6.73%      series Senior Notes due 2009 to 2018 |   |                        | 90.0   |   |   |   | 9.0 |   |   |   | 81.0 |   |
| 9.09%      series Senior Notes due 2012 to 2021 |   |                        | 100.0  |   |   |   | - |   |   |   | 100.0 |   |
| 6.95%      series Senior Notes due 2019 to 2028 |   |                        | 110.0  |   |   |   | - |   |   |   | 110.0 |   |
| 8.08%      series Senior Notes due 2021 to 2030 |   |                        | 100.0  |   |   |   | - |   |   |   | 100.0 |   |
| Total                                           |   |                        | 440.0  |   |   |   | 19.0 |   |   |   | 421.0 |   |
|                                            |   |                        |   |   |   |   |   |   |   |   |   |   |

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|                                                                                                                                 |   | Payments      Due by Period |   |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|--------|
| (unaudited)(millions      of dollars)                                                                                                |   | Total                       |   |   | Less      than 1 year |   |   | Long-term      Portion |   |
|                                                                                                                                 |   |                        |   |   |   |   |   |   |   |
| 7.75%      senior notes due 2009                                                                                                     |   |                        | 200.0  |   |   |   | 200.0 |   |   |   | - |   |
| 7.50%      senior notes due 2021                                                                                                     |   |                        | 250.0  |   |   |   | - |   |   |   | 250.0 |   |
| $250      million credit agreement due 2012(a)                                                                                       |   |                        | 172.0  |   |   |   | - |   |   |   | 172.0 |   |
| Total                                                                                                                                |   |                        | 622.0  |   |   |   | 200.0 |   |   |   | 422.0 |   |
|                                                                                                                                 |   |                        |   |   |   |   |   |   |   |   |   |   |
| (a)      Northern Border is required to pay a facility fee of 0.05% on the      principal commitment amount of its credit agreement. |   |

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| 10.1 | Membership      Interest Purchase Agreement as of August 28, 2008, by and between Northern      Border Pipeline Company and TransCanada Pipeline USA  Ltd. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2 | First      Amendment to Amended and Restated Revolving Credit Agreement dated as of      July 31, 2008 between Northern Border Pipeline Company and the lenders      named therein. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.1 | Certification      of Principal Executive Officer pursuant to Section 302 of the      Sarbanes-Oxley Actof  2002. |
|------|-----------------------------------------------------------------------------------------------------------------------------|

| 31.2 | Certification      of Principal Financial Officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002. |
|------|-------------------------------------------------------------------------------------------------------------------|

| 32.1 | Certification      of Principal Executive Officer pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002. |
|------|-------------------------------------------------------------------------------------------------------------------|

| 32.2   | Certification      of Principal Financial Officer pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002. |
|------------------|-------------------------------------------------------------------------------------------------------------------|

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|   | TC      PipeLines, LP                       |
|--------|---------------------------------------------|
|   | (a      Delaware Limited Partnership)  |
|   | By:                                         | TC      PipeLines GP, Inc., its general partner  |
| Date:  | November      3, 2008                       | By: | /s/  Russell      K. Girling Russell      K. GirlingChairman,      Chief Executive Officer and DirectorTC      PipeLines GP, Inc. (Principal Executive Officer)  |
| Date:  | November      3, 2008                       | By: | /s/  Amy W.      LeongAmy      W. LeongControllerTC      PipeLines GP, Inc. (Principal FinancialOfficer) |