----

| 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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|  TC PIPELINES, LP                                                            |                                                                                                          |           |
|-----------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|----------------|
|                                                                              |                                                                                                          |  Page No. |
|  TABLE OF CONTENTS                                                           |                                                                                                          |           |
|                                                                              |                                                                                                          |           |
|  PART I                                                                      |  FINANCIAL INFORMATION                                                                                   |           |
|                                                                              |                                                                                                          |           |
|                                                                              |  Glossary                                                                                                |  3        |
|                                                                              |                                                                                                          |           |
|  Item 1.                                                                     |  Financial Statements                                                                                    |           |
|                                                                              |                                                                                                          |           |
|                                                                              |  Consolidated Statement of Income - Three and six months ended June 30, 2009 and 2008               |  4        |
|                                                                              |  Consolidated Statement of Comprehensive Income - Three and six months ended June 30, 2009 and 2008 |  4        |
|                                                                              |  Consolidated Balance Sheet - June 30, 2009 and December 31, 2008                                   |  5        |
|                                                                              |  Consolidated Statement of Cash Flows - Six months ended June 30, 2009 and 2008                     |  6        |
|                                                                              |  Consolidated Statement of Changes in Partners' Equity - Six months ended June 30, 2009                  |  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                                                         |  26       |
|                                                                              |  Liquidity and Capital Resources of our Pipeline Systems                                                 |  27       |
|                                                                              |                                                                                                          |           |
|  Item 3.                                                                     |  Quantitative and Qualitative Disclosures About Market Risk                                              |  30       |
|                                                                              |                                                                                                          |           |
|  Item 4.                                                                     |  Controls and Procedures                                                                                 |  32       |
|                                                                              |                                                                                                          |           |
|  PART II                                                                |  OTHER INFORMATION                                                                                       |           |
|                                                                              |                                                                                                          |           |
|  Item 1A.                                                                    |  Risk Factors                                                                                            |  33       |
|                                                                              |                                                                                                          |           |
|  Item 6.                                                                     |  Exhibits                                                                                                |  34       |
|                                                                              |                                                                                                          |           |
|  All amounts are stated in United States dollars unless otherwise indicated. |                                                                                                          |

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| Acquisition               | The acquisition of 100 per cent of North Baja Pipeline, LLC by the Partnership                                                                                                                                                                                                                                                                                      |
|---------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Collar Agreement     | Northern Border's interest rate collar agreement                                                                                                                                                                                                                                                                                                                    |
| EPA                       | United States Environmental Protection Agency                                                                                                                                                                                                                                                                                                                       |
| Exchange Agreement        | Agreement with the general partner pursuant to which the Partnership issued new common units to the general partner and provided for revised incentive distribution rights in exchange for the cancellation of the incentive distribution rights available to the general partner under the Amendedand Restated Agreement of Limited Partnership of the Partnership |
| FASB                      | Financial Accounting Standards Board                                                                                                                                                                                                                                                                                                                                |
| FERC                      | Federal Energy Regulatory Commission                                                                                                                                                                                                                                                                                                                                |
| GAAP                      | U.S. generally accepted accounting principles                                                                                                                                                                                                                                                                                                                       |
| General partner           | TC PipeLines GP, Inc.                                                                                                                                                                                                                                                                                                                                               |
| GLGT                      | Great Lakes Gas Transmission Limited Partnership                                                                                                                                                                                                                                                                                                                    |
| Great Lakes               | Great Lakes Gas Transmission Limited Partnership                                                                                                                                                                                                                                                                                                                    |
| GTN                       | Gas Transmission Northwest Corporation                                                                                                                                                                                                                                                                                                                              |
| IDRs                      | Incentive Distribution Rights                                                                                                                                                                                                                                                                                                                                       |
| LIBOR                     | London Interbank Offered Rate                                                                                                                                                                                                                                                                                                                                       |
| MMcf/d                    | Million cubic feet per day                                                                                                                                                                                                                                                                                                                                          |
| NBPC                      | Northern Border Pipeline Company                                                                                                                                                                                                                                                                                                                                    |
| Net WCSB Flows to Markets | Net of the supply of and demand for WCSB natural gas that is available for transportation to downstream markets; where supply represents WCSB production adjusted for injections into and withdrawals from WCSB storage                                                                                                                                             |
| North Baja                | North Baja Pipeline, LLC                                                                                                                                                                                                                                                                                                                                            |
| Northern Border           | Northern Border Pipeline Company                                                                                                                                                                                                                                                                                                                                    |
| NOV                       | Notice of Violation                                                                                                                                                                                                                                                                                                                                                 |
| Offering                  | The sale of 2,609,680 newly issued, unregistered common units representing limited partner interests in the Partnership to TransCan Northern at a price per common unit of $30.042 for an aggregate amount of approximately $78.4 million                                                                                                                           |
| Old IDRs                  | Incentive Distribution Rights per the Amended and Restated Agreement of Limited Partnership                                                                                                                                                                                                                                                                         |
| Our pipeline systems      | Great Lakes, Northern Border and Tuscarora (and North Baja beginning on July 1, 2009)                                                                                                                                                                                                                                                                               |
| Partnership               | TC PipeLines, LP and its subsidiaries                                                                                                                                                                                                                                                                                                                               |
| PipeLP                    | TC PipeLines, LP and its subsidiaries                                                                                                                                                                                                                                                                                                                               |
| Purchase Agreement   | Common Unit Purchase Agreement                                                                                                                                                                                                                                                                                                                                      |
| Revised IDRs              | Incentive Distribution Rights per the Second Amended and Restated Agreement of Limited Partnership                                                                                                                                                                                                                                                                  |
| REX East                  | Eastern segment of the Rockies Express Pipeline                                                                                                                                                                                                                                                                                                                     |
| REX West                  | Western segment of the Rockies Express Pipeline                                                                                                                                                                                                                                                                                                                     |
| Senior Credit Facility    | TC PipeLines' revolving credit and term loan agreement                                                                                                                                                                                                                                                                                                              |
| SFAS                      | Statement of Financial Accounting Standards                                                                                                                                                                                                                                                                                                                         |
| TC PipeLines              | TC PipeLines, LP and its subsidiaries                                                                                                                                                                                                                                                                                                                               |
| TGTC                      | Tuscarora Gas Transmission Company                                                                                                                                                                                                                                                                                                                                  |
| TransCan Northern         | TransCan Northern Ltd.                                                                                                                                                                                                                                                                                                                                              |
| TransCanada               | TransCanada Corporation and its subsidiaries                                                                                                                                                                                                                                                                                                                        |
| Tuscarora                 | Tuscarora Gas Transmission Company                                                                                                                                                                                                                                                                                                                                  |
| U.S.                      | United States of America                                                                                                                                                                                                                                                                                                                                            |
| WCSB                      | Western Canada Sedimentary Basin                                                                                                                                                                                                                                                                                                                                    |

----

| (unaudited)                                               |   | Three months endedJune 30, |   | Six months endedJune 30, |   |
|-----------------------------------------------------------|--------|----------------------------|--------|--------------------------|--------|
| (millions of dollars except per common unit amounts)      |   | 2009                       |   |                     | 2008   |   |   | 2009 |   |   | 2008 |   |
|                                                      |   |                       |   |                     |   |   |   |   |   |   |   |   |
| Equity income from investment in Great Lakes (Note 2)     |   |                       | 12.9   |                     |   |   | 13.8 |   |   |   | 32.4 |   |   |   | 32.4 |   |
| Equity income from investment in Northern Border (Note 3) |   |                       | 5.4    |                     |   |   | 8.7 |   |   |   | 21.0 |   |   |   | 28.2 |   |
| Transmission revenues                                     |   |                       | 8.2    |                     |   |   | 8.2 |   |   |   | 16.6 |   |   |   | 15.1 |   |
| Operating expenses                                        |   |                       | (4.1   | )                        |   |   | (2.3 | ) |   |   | (6.7 | ) |   |   | (4.5 | ) |
| Depreciation                                              |   |                       | (1.7   | )                        |   |   | (1.7 | ) |   |   | (3.5 | ) |   |   | (3.3 | ) |
| Financial charges, net and other                          |   |                       | (7.0   | )                        |   |   | (7.5 | ) |   |   | (14.3 | ) |   |   | (15.1 | ) |
| Net income                                                |   |                       | 13.7   |                     |   |   | 19.2 |   |   |   | 45.5 |   |   |   | 52.8 |   |
|                                                      |   |                       |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income allocation                                     |   |                       |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Common units                                              |   |                       | 10.8   |                     |   |   | 16.2 |   |   |   | 39.3 |   |   |   | 46.6 |   |
| General partner                                           |   |                       | 2.9    |                     |   |   | 3.0 |   |   |   | 6.2 |   |   |   | 6.2 |   |
|                                                      |   |                       | 13.7   |                     |   |   | 19.2 |   |   |   | 45.5 |   |   |   | 52.8 |   |
|                                                      |   |                       |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income per common unit (Note 6)                       |   | $                          | 0.31   |                     |   | $ | 0.47 |   |   | $ | 1.13 |   |   | $ | 1.34 |   |
|                                                      |   |                       |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common units outstanding (millions)      |   |                       | 34.9   |                     |   |   | 34.9 |   |   |   | 34.9 |   |   |   | 34.9 |   |
|                                                      |   |                       |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Common units outstanding, end of the period (millions)    |   |                       | 34.9   |                     |   |   | 34.9 |   |   |   | 34.9 |   |   |   | 34.9 |   |

| (unaudited)                                                                             |   | Three months endedJune 30, |   |   | Six months endedJune 30, |   |
|-----------------------------------------------------------------------------------------|--------|----------------------------|--------|--------|--------------------------|--------|
| (millions of dollars)                                                                   |   | 2009                       |   |   | 2008                     |   |   | 2009 |   |   | 2008 |   |
|                                                                                    |   |                       |   |   |                     |   |   |   |   |   |   |   |
| Net income                                                                              |   |                       | 13.7   |   |                     |   | 19.2 |   |   |   | 45.5 |   |   |   | 52.8 |   |
| Other comprehensive income/(loss)                                                       |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
|    Change associated with hedging transactions (Note 9)                  |   |                       | 5.0    |   |                     |   | 11.9 |   |   |   | 6.4 |   |   |   | (0.4 | ) |
|    Change associated with hedging transactions of investees              |   |                       | 0.3    |   |                     |   | 1.9 |   |   |   | 0.2 |   |   |   | 0.3 |   |
|                                                                                    |   |                       | 5.3    |   |                     |   | 13.8 |   |   |   | 6.6 |   |   |   | (0.1 | ) |
| Total comprehensive income                                                              |   |                       | 19.0   |   |                     |   | 33.0 |   |   |   | 52.1 |   |   |   | 52.7 |   |
|                                                                                    |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| The accompanying notes are an integral part of these consolidated financial statements. |   |                       |   |   |                     |   |   |   |   |

----

| (unaudited)                                                                                  |   |          |    |   |                    |   |
|----------------------------------------------------------------------------------------------|--------|---------------|---------|--------|-------------------------|--------|
| (millions of dollars)                                                                        |   | June 30, 2009 |    |   | December 31, 2008  |
| ASSETS                                                                                       |   |          |    |   |                    |   |
| Current Assets                                                                               |   |          |    |   |                    |   |
|      Cash and cash equivalents                                      |   |          | 22.8    |   |                    |   | 8.4 |   |
|      Accounts receivable and other                                  |   |          | 2.9     |   |                    |   | 3.4 |   |
|                                                                                         |   |          | 25.7    |   |                    |   | 11.8 |   |
| Investment in Great Lakes (Note 2)                                                           |   |          | 702.7   |   |                    |   | 704.5 |   |
| Investment in Northern Border (Note 3)                                                       |   |          | 493.6   |   |                    |   | 514.8 |   |
| Plant, property and equipment (net of $72.1 accumulated depreciation, 2008 - $68.6)          |   |          | 131.0   |   |                    |   | 134.2 |   |
| Goodwill                                                                                     |   |          | 81.7    |   |                    |   | 81.7 |   |
| Other assets                                                                                 |   |          | 1.2     |   |                    |   | 1.5 |   |
|                                                                                         |   |          | 1,435.9 |   |                    |   | 1,448.5 |   |
|                                                                                         |   |          |    |   |                    |   |   |   |
| LIABILITIES AND PARTNERS' EQUITY                                                             |   |          |    |   |                    |   |   |   |
| Current Liabilities                                                                          |   |          |    |   |                    |   |   |   |
|      Accounts payable                                               |   |          | 2.2     |   |                    |   | 2.2 |   |
|      Accrued interest                                               |   |          | 1.4     |   |                    |   | 2.1 |   |
|      Current portion of long-term debt (Note 5)                     |   |          | 4.4     |   |                    |   | 4.4 |   |
|      Current portion of fair value of derivative contracts (Note 9) |   |          | 10.8    |   |                    |   | 11.8 |   |
|                                                                                         |   |          | 18.8    |   |                    |   | 20.5 |   |
| Fair value of derivative contracts and other (Note 9)                                        |   |          | 14.8    |   |                    |   | 20.0 |   |
| Long-term debt (Note 5)                                                                      |   |          | 530.1   |   |                    |   | 532.4 |   |
|                                                                                         |   |          | 563.7   |   |                    |   | 572.9 |   |
| Partners' Equity                                                                             |   |          |    |   |                    |   |   |   |
|      Common units                                                   |   |          | 881.6   |   |                    |   | 891.4 |   |
|      General partner                                                |   |          | 18.9    |   |                    |   | 19.1 |   |
|      Accumulated other comprehensive loss                           |   |          | (28.3   | )      |                    |   | (34.9 | ) |
|                                                                                         |   |          | 872.2   |   |                    |   | 875.6 |   |
|                                                                                         |   |          | 1,435.9 |   |                    |   | 1,448.5 |   |
|                                                                                         |   |          |    |   |                    |   |   |   |
| Subsequent events (Note 12)                                                                  |   |          |    |   |                    |   |   |   |
|                                                                                         |   |          |    |   |                    |   |   |   |
| The accompanying notes are an integral part of these consolidated financial statements.      |   |          |    |   |                    |

----

| (unaudited)                                                                             |   | Six months ended June 30, |   |
|-----------------------------------------------------------------------------------------|--------|---------------------------|--------|
| (millions of dollars)                                                                   |   | 2009                      |   |   | 2008 |   |
|                                                                                    |   |                      |   |   |   |   |
| CASH GENERATED FROM OPERATIONS                                                          |   |                      |   |   |   |   |
| Net income                                                                              |   |                      | 45.5   |   |   |   | 52.8 |   |
| Depreciation                                                                            |   |                      | 3.5    |   |   |   | 3.3 |   |
| Amortization of other assets                                                            |   |                      | 0.3    |   |   |   | 0.2 |   |
| Increase in long-term liabilities                                                       |   |                      | 0.2    |   |   |   | 0.1 |   |
| Equity allowance for funds used during construction                                     |   |                      | -      |   |   |   | (0.2 | ) |
| Increase in operating working capital (Note 10)                                         |   |                      | (0.2   | ) |   |   | (1.9 | ) |
|                                                                                    |   |                      | 49.3   |   |   |   | 54.3 |   |
|                                                                                    |   |                      |   |   |   |   |   |   |
| INVESTING ACTIVITIES                                                                    |   |                      |   |   |   |   |   |   |
| Cumulative distributions in excess of equity earnings:                                  |   |                      |   |   |   |   |   |   |
|      Great Lakes                                               |   |                      | 1.8    |   |   |   | 3.3 |   |
|      Northern Border                                           |   |                      | 25.7   |   |   |   | 21.2 |   |
| Investment in Northern Border (Note 3)                                                  |   |                      | (4.3   | ) |   |   | - |   |
| Capital expenditures                                                                    |   |                      | (0.3   | ) |   |   | (5.4 | ) |
| Increase in investing working capital (Note 10)                                         |   |                      | -      |   |   |   | (2.5 | ) |
|                                                                                    |   |                      | 22.9   |   |   |   | 16.6 |   |
|                                                                                    |   |                      |   |   |   |   |   |   |
| FINANCING ACTIVITIES                                                                    |   |                      |   |   |   |   |   |   |
| Distributions paid (Note 7)                                                             |   |                      | (55.5  | ) |   |   | (53.0 | ) |
| Long-term debt repaid (Note 5)                                                          |   |                      | (2.3   | ) |   |   | (24.3 | ) |
|                                                                                    |   |                      | (57.8  | ) |   |   | (77.3 | ) |
|                                                                                    |   |                      |   |   |   |   |   |   |
| Increase/(decrease) in cash and cash equivalents                                        |   |                      | 14.4   |   |   |   | (6.4 | ) |
| Cash and cash equivalents, beginning of period                                          |   |                      | 8.4    |   |   |   | 7.5 |   |
|                                                                                    |   |                      |   |   |   |   |   |   |
| Cash and cash equivalents, end of period                                                |   |                      | 22.8   |   |   |   | 1.1 |   |
|                                                                                    |   |                      |   |   |   |   |   |   |
| Interest payments made                                                                  |   |                      | 7.7    |   |   |   | 14.3 |   |
|                                                                                    |   |                      |   |   |   |   |   |   |
| The accompanying notes are an integral part of these consolidated financial statements. |   |

----

| (unaudited)                                                                                                                                                                                                                                                                                                                                                                                               |   |   Common Units |   |      |   General Partner |      |   | AccumulatedOtherComprehensive(Loss)/Income (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, 2008                                                                                                                                                                                                                                                                                                                                                                     |   |                     | 34.9   |      |                        |      | 891.4  |                                                 |      |                         | 19.1        |   |   |   | (34.9 | ) |   |   | 34.9 |   |   |   | 875.6 |   |
| Net income                                                                                                                                                                                                                                                                                                                                                                                                |   |                     | -      |      |                        |      | 39.3   |                                                 |      |                         | 6.2         |   |   |   | - |   |   |   | - |   |   |   | 45.5 |   |
| Distributions paid                                                                                                                                                                                                                                                                                                                                                                                        |   |                     | -      |      |                        |      | (49.1  | )                                                    |      |                         | (6.4        | ) |   |   | - |   |   |   | - |   |   |   | (55.5 | ) |
| Other comprehensive income                                                                                                                                                                                                                                                                                                                                                                                |   |                     | -      |      |                        |      | -      |                                                 |      |                         | -           |   |   |   | 6.6 |   |   |   | - |   |   |   | 6.6 |   |
| Partners' equity at June 30, 2009                                                                                                                                                                                                                                                                                                                                                                         |   |                     | 34.9   |      |                        |      | 881.6  |                                                 |      |                         | 18.9        |   |   |   | (28.3 | ) |   |   | 34.9 |   |   |   | 872.2 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                      |   |                     |   |      |                        |      |   |                                                 |      |                         |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1) TC PipeLines, LP uses derivatives to assist in managing its exposure to interest rate risk.Based on interest rates at June 30, 2009, 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 $10.8 million, which will be offset by a reduction to interest expense of a similar amount. |   |
|                                                                                                                                                                                                                                                                                                                                                                                                      |   |                     |   |      |                        |      |   |                                                 |      |                         |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| The accompanying notes are an integral part of these consolidated financial statements.                                                                                                                                                                                                                                                                                                                   |   |                     |   |      |                        |      |   |                                                 |      |

----

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

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

| Summarized Consolidated Great Lakes Income Statement |   | Three months ended |   |   | Six months ended |   |
|------------------------------------------------------|--------|--------------------|--------|--------|------------------|--------|
| (unaudited)                                          |   |  June 30,     |   |   | June 30,         |   |
| (millions of dollars)                                |   | 2009               |   |   | 2008             |   |   | 2009 |   |   | 2008 |   |
| Transmission revenues                                |   |               | 69.0   |   |             |   | 67.5 |   |   |   | 151.5 |   |   |   | 147.2 |   |
| Operating expenses                                   |   |               | (17.1  | )      |             |   | (13.7 | ) |   |   | (33.1 | ) |   |   | (28.8 | ) |
| Depreciation                                         |   |               | (14.6  | )      |             |   | (14.6 | ) |   |   | (29.2 | ) |   |   | (29.2 | ) |
| Financial charges, net and other                     |   |               | (8.1   | )      |             |   | (8.2 | ) |   |   | (16.3 | ) |   |   | (16.4 | ) |
| Michigan business tax                                |   |               | (1.3   | )      |             |   | (1.3 | ) |   |   | (3.1 | ) |   |   | (3.0 | ) |
| Net income                                           |   |               | 27.9   |   |             |   | 29.7 |   |   |   | 69.8 |   |   |   | 69.8 |   |

----

| Summarized Consolidated Great Lakes Balance Sheet |   |     |   |   |         |   |
|---------------------------------------------------|--------|----------|--------|--------|--------------|--------|
| (unaudited)                                       |   | June 30, |   |   | December 31, |   |
| (millions of dollars)                             |   | 2009     |   |   | 2008         |   |
| Assets                                            |   |     |   |   |         |   |
| Cash and cash equivalents                         |   |     | -      |   |         |   | 1.6 |   |
| Other current assets                              |   |     | 91.0   |   |         |   | 80.2 |   |
| Plant, property and equipment, net                |   |     | 895.7  |   |         |   | 923.4 |   |
|                                              |   |     | 986.7  |   |         |   | 1,005.2 |   |
| Liabilities and Partners' Equity                  |   |     |   |   |         |   |   |   |
| Current liabilities                               |   |     | 36.8   |   |         |   | 43.0 |   |
| Deferred credits                                  |   |     | 3.0    |   |         |   | 2.3 |   |
| Long-term debt, including current maturities      |   |     | 421.0  |   |         |   | 430.0 |   |
| Partners' capital                                 |   |     | 525.9  |   |         |   | 529.9 |   |
|                                              |   |     | 986.7  |   |         |   | 1,005.2 |   |

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

| Summarized Northern Border Income Statement |   | Three months ended |   |   | Six months ended |   |
|---------------------------------------------|--------|--------------------|--------|--------|------------------|--------|
| (unaudited)                                 |   | June 30,           |   |   | June 30,         |   |
| (millions of dollars)                       |   | 2009               |   |   | 2008             |   |   | 2009 |   |   | 2008 |   |
| Transmission revenues                       |   |               | 54.2   |   |             |   | 61.3 |   |   |   | 128.7 |   |   |   | 145.1 |   |
| Operating expenses                          |   |               | (18.3  | )      |             |   | (18.8 | ) |   |   | (36.8 | ) |   |   | (38.2 | ) |
| Depreciation                                |   |               | (15.5  | )      |             |   | (15.3 | ) |   |   | (30.8 | ) |   |   | (30.5 | ) |
| Financial charges, net and other            |   |               | (9.2   | )      |             |   | (9.5 | ) |   |   | (18.3 | ) |   |   | (19.2 | ) |
| Net income                                  |   |               | 11.2   |   |             |   | 17.7 |   |   |   | 42.8 |   |   |   | 57.2 |   |

| Summarized Northern Border Balance Sheet                           |   |     |    |   |         |   |
|--------------------------------------------------------------------|--------|----------|---------|--------|--------------|--------|
| (unaudited)                                                        |   | June 30, |    |   | December 31, |   |
| (millions of dollars)                                              |   | 2009     |    |   | 2008         |   |
| Assets                                                             |   |     |    |   |         |   |
| Cash and cash equivalents                                          |   |     | 13.1    |   |         |   | 21.6 |   |
| Other current assets                                               |   |     | 26.3    |   |         |   | 39.1 |   |
| Plant, property and equipment, net                                 |   |     | 1,368.7 |   |         |   | 1,390.8 |   |
| Other assets                                                       |   |     | 24.5    |   |         |   | 24.5 |   |
|                                                               |   |     | 1,432.6 |   |         |   | 1,476.0 |   |
| Liabilities and Partners' Equity                                   |   |     |    |   |         |   |   |   |
| Current liabilities                                                |   |     | 41.4    |   |         |   | 48.7 |   |
| Deferred credits and other                                         |   |     | 7.8     |   |         |   | 11.2 |   |
| Long-term debt, including current maturities                       |   |     | 639.5   |   |         |   | 630.4 |   |
| Partners' equity                                                   |   |     |    |   |         |   |   |   |
|      Partners' capital                    |   |     | 749.2   |   |         |   | 791.4 |   |
|      Accumulated other comprehensive loss |   |     | (5.3    | )      |         |   | (5.7 | ) |
|                                                               |   |     | 1,432.6 |   |         |   | 1,476.0 |   |

----

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

| Summarized Tuscarora Income Statement |   | Three months ended |   |   | Six months ended |   |
|---------------------------------------|--------|--------------------|--------|--------|------------------|--------|
| (unaudited)                           |   | June 30,           |   |   | June 30,         |   |
| (millions of dollars)                 |   | 2009               |   |   | 2008             |   |   | 2009 |   |   | 2008 |   |
| Transmission revenues                 |   |               | 8.2    |   |             |   | 8.2 |   |   |   | 16.6 |   |   |   | 15.1 |   |
| Operating expenses                    |   |               | (1.2   | )      |             |   | (1.1 | ) |   |   | (2.6 | ) |   |   | (2.3 | ) |
| Depreciation                          |   |               | (1.7   | )      |             |   | (1.7 | ) |   |   | (3.5 | ) |   |   | (3.3 | ) |
| Financial charges, net and other      |   |               | (1.2   | )      |             |   | (1.1 | ) |   |   | (2.3 | ) |   |   | (2.0 | ) |
| Net income                            |   |               | 4.1    |   |             |   | 4.3 |   |   |   | 8.2 |   |   |   | 7.5 |   |

| Summarized Tuscarora Balance Sheet           |   |     |   |   |         |   |
|----------------------------------------------|--------|----------|--------|--------|--------------|--------|
| (unaudited)                                  |   | June 30, |   |   | December 31, |   |
| (millions of dollars)                        |   | 2009     |   |   | 2008         |   |
| Assets                                       |   |     |   |   |         |   |
| Other current assets                         |   |     | 7.6    |   |         |   | 3.1 |   |
| Plant, property and equipment, net           |   |     | 131.0  |   |         |   | 134.2 |   |
| Other assets                                 |   |     | 0.2    |   |         |   | 0.3 |   |
|                                         |   |     | 138.8  |   |         |   | 137.6 |   |
| Liabilities and Partners' Equity             |   |     |   |   |         |   |   |   |
| Current liabilities                          |   |     | 2.1    |   |         |   | 2.0 |   |
| Long-term debt, including current maturities |   |     | 59.5   |   |         |   | 61.8 |   |
| Partners' capital                            |   |     | 77.2   |   |         |   | 73.8 |   |
|                                         |   |     | 138.8  |   |         |   | 137.6 |   |

| Summarized Tuscarora Cash Flow Statement       |   | Three months ended |   |   | Six months ended |   |
|------------------------------------------------|--------|--------------------|--------|--------|------------------|--------|
| (unaudited)                                    |   | June 30,           |   |   | June 30,         |   |
| (millions of dollars)                          |   | 2009               |   |   | 2008             |   |   | 2009 |   |   | 2008 |   |
| Cash flows provided by operating activities    |   |               | 4.8    |   |             |   | 4.1 |   |   |   | 12.0 |   |   |   | 10.1 |   |
| Cash flows used in investing activities        |   |               | (0.1   | )      |             |   | (3.9 | ) |   |   | (0.3 | ) |   |   | (7.9 | ) |
| Cash flows used in financing activities        |   |               | (4.7   | )      |             |   | (0.2 | ) |   |   | (11.7 | ) |   |   | (8.3 | ) |
| Decrease in cash and cash equivalents          |   |               | -      |   |             |   | - |   |   |   | - |   |   |   | (6.1 | ) |
| Cash and cash equivalents, beginning of period |   |               | -      |   |             |   | - |   |   |   | - |   |   |   | 6.1 |   |
| Cash and and cash equivalents, end of period   |   |               | -      |   |             |   | - |   |   |   | - |   |   |   | - |   |

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

| (unaudited)                          |   | June 30, |   |   | December 31, |   |
|--------------------------------------|--------|----------|--------|--------|--------------|--------|
| (millions of dollars)                |   | 2009     |   |   | 2008         |   |
|                                 |   |     |   |   |         |   |
| Senior Credit Facility               |   |     | 475.0  |   |         |   | 475.0 |   |
| 7.13% Series A Senior Notes due 2010 |   |     | 49.7   |   |         |   | 51.3 |   |
| 7.99% Series B Senior Notes due 2010 |   |     | 4.7    |   |         |   | 5.0 |   |
| 6.89% Series C Senior Notes due 2012 |   |     | 5.1    |   |         |   | 5.5 |   |
|                                 |   |     | 534.5  |   |         |   | 536.8 |   |

----

| (unaudited)           |                                                                                                                                                                                                                                                                                                                                                                                          |
|-----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (millions of dollars) |                                                                                                                                                                                                                                                                                                                                                                                          |
| 2009                  |                                                                2.2 |
| 2010                  |                                                              53.4            |
| 2011                  |                                                            475.8                       |
| 2012                  |                                                                3.1 |
|                  |                                                            534.5                       |

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

| (unaudited) |   | Three months endedJune 30, | Six months endedJune 30, |   |
|-------------|--------|----------------------------|--------------------------|--------|

| (millions of dollars except per unit)                      |   | 2009   |   |   | 2008   |   |   | 2009   |   |   | 2008   |   |
|------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Net income                                                 |   |   | 13.7   |   |   |   | 19.2   |   |   |   | 45.5   |   |   |   | 52.8 |   |
| Net income allocated to general partner                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    General partner interest                 |   |   | (0.3   | )      |   |   | (0.4   | )      |   |   | (0.9   | )      |   |   | (1.1 | ) |
|    Incentive distribution income allocation |   |   | (2.6   | )      |   |   | (2.6   | )      |   |   | (5.3   | )      |   |   | (5.1 | ) |
|                                                       |   |   | (2.9   | )      |   |   | (3.0   | )      |   |   | (6.2   | )      |   |   | (6.2 | ) |
| Net income allocable to common units                       |   |   | 10.8   |   |   |   | 16.2   |   |   |   | 39.3   |   |   |   | 46.6 |   |
| Weighted average common units outstanding (millions)       |   |   | 34.9   |   |   |   | 34.9   |   |   |   | 34.9   |   |   |   | 34.9 |   |
| Net income per common unit                                 |   | $      | 0.31   |   |   | $      | 0.47   |   |   | $      | 1.13   |   |   | $ | 1.34 |   |

----

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

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

| (unaudited)                                      |   | Three months endedJune 30, |   |   | Six months endedJune 30, |   |
|--------------------------------------------------|--------|----------------------------|--------|--------|--------------------------|--------|
| (millions of dollars)                            |   | 2009                       |   |   | 2008                     |   |   | 2009 |   |   | 2008 |   |
|                                             |   |                       |   |   |                     |   |   |   |   |   |   |   |
| Costs charged by TransCanada and its affiliates: |   |                       |   |   |                     |   |   |   |   |   |   |   |
|      Great Lakes        |   |                       | 8.2    |   |                     |   | 7.9 |   |   |   | 15.5 |   |   |   | 15.2 |   |
|      Northern Border    |   |                       | 6.4    |   |                     |   | 9.2 |   |   |   | 12.7 |   |   |   | 16.0 |   |
|      Tuscarora          |   |                       | 0.8    |   |                     |   | 0.9 |   |   |   | 1.5 |   |   |   | 2.0 |   |
| Impact on the Partnership's net income:          |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
|      Great Lakes        |   |                       | 3.7    |   |                     |   | 3.1 |   |   |   | 6.9 |   |   |   | 6.5 |   |
|      Northern Border    |   |                       | 3.1    |   |                     |   | 3.1 |   |   |   | 6.0 |   |   |   | 6.4 |   |
|      Tuscarora          |   |                       | 0.7    |   |                     |   | 0.9 |   |   |   | 1.4 |   |   |   | 2.0 |   |

| (unaudited)                                    |   | June 30, |   |   | December 31, |   |
|------------------------------------------------|--------|----------|--------|--------|--------------|--------|
| (millions of dollars)                          |   | 2009     |   |   | 2008         |   |
|                                           |   |     |   |   |         |   |
| Amount owed to TransCanada and its affiliates: |   |     |   |   |         |   |
|      Great Lakes      |   |     | 3.8    |   |         |   | 4.5 |   |
|      Northern Border  |   |     | 2.7    |   |         |   | 2.8 |   |
|      Tuscarora        |   |     | 0.7    |   |         |   | 0.8 |   |

----

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

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

| (unaudited)                               |   | Six months ended June 30, |   |
|-------------------------------------------|--------|---------------------------|--------|
| (millions of dollars)                     |   | 2009                      |   |   | 2008 |   |
|                                      |   |                      |   |   |   |   |
| Decrease in accounts receivable and other |   |                      | 0.5    |   |   |   | 0.6 |   |
| Decrease in bank indebtedness             |   |                      | -      |   |   |   | (1.4 | ) |
| Decrease in accounts payable              |   |                      | -      |   |   |   | (2.8 | ) |
| Decrease in accrued interest              |   |                      | (0.7   | ) |   |   | (0.8 | ) |
|                                      |   |                      | (0.2   | ) |   |   | (4.4 | ) |
| Increase in investing working capital     |   |                      | -      |   |   |   | (2.5 | ) |
| Increase in operating working capital     |   |                      | (0.2   | ) |   |   | (1.9 | ) |

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

----

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

----

| ●   | the ability of Great Lakes and Northern Border to continue to make distributions at their current levels; |
|---------------------|-----------------------------------------------------------------------------------------------------------|

| ●   | 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 Great Lakes, Northern Border, Tuscarora and North Baja, (together "our pipeline systems"), to market pipeline capacity on favorable terms, which is affected by: |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | future demand for and prices of natural gas; |
|---------------|----------------------------------------------|

| o   | level of natural gas basis differentials; |
|---------------|-------------------------------------------|

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

| o   | availability of supplies of Canadian and United States (U.S.) natural gas, including newly discovered natural gas developments such as the Horn River and Montney shale gas developments in Western Canada, U.S. Rockies and U.S. Mid-Continent shale gas developments, and the Marcellus shale gas developments; |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| o   | level of liquefied natural gas imports; |
|---------------|-----------------------------------------|

| o   | weather conditions that impact supply and demand; |
|---------------|---------------------------------------------------|

| o   | ability of shippers to meet credit worthiness requirements; and |
|---------------|-----------------------------------------------------------------|

| o   | competitive developments by Canadian and U.S. natural gas transmission companies; |
|---------------|-----------------------------------------------------------------------------------|

| ●   | changes in relative cost structures of natural gas producing basins, such as changes in royalty programs, that may prejudice the development of the Western Canada Sedimentary Basin (WCSB); |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | the decision by other pipeline companies to advance projects which will affect our pipeline systems and the regulatory, financing and construction risks related to construction of interstate natural gas pipelines; |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| ●   | the imposition of entity level taxation by states 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, and proposed and pending legislation by Congress and proposed and pending regulations by the U.S. Environmental Protection Agency (EPA) related to greenhouse gas emissions on us and our pipeline systems; |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | our ability to control operating costs and the ability of TransCanada to implement its reorganization of U.S. pipeline operations, including the operations of our pipeline systems, and realize expected cost savings; and |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | the severity and length of the current economic downturn, which impacts: |
|---------------------|--------------------------------------------------------------------------|

| o   | the debt and equity capital markets and our ability to access these markets; |
|---------------|------------------------------------------------------------------------------|

| o   | the overall demand for natural gas by end users; and |
|---------------|------------------------------------------------------|

| o   | natural gas prices |
|---------------|--------------------|

----

----

----

----

----

----

----

| 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)                                                                                                                                                                 |   | Three months ended June 30, 2009  |   | Six months ended June 30, 2009  |
| (millions of dollars)                                                                                                                                                       |   | PipeLP |   |   | TGTC |   |   | Other |   |   | GLGT |   |   | NBPC(1) |   |   | PipeLP |   |   | TGTC |   |   | Other |   |   | GLGT |   |   | NBPC(1) |   |
| Transmission revenues                                                                                                                                                       |   |   | 8.2 |   |   |   | 8.2 |   |   |   | - |   | 69.0 |   |   |   | 54.2 |   |   |   | 16.6 |   |   |   | 16.6 |   |   |   | - |   |   |   | 151.5 |   |   |   | 128.7 |   |
| Operating expenses                                                                                                                                                          |   |   | (4.1 | ) |   |   | (1.2 | ) |   |   | (2.9 | ) | (17.1 | ) |   |   | (18.3 | ) |   |   | (6.7 | ) |   |   | (2.6 | ) |   |   | (4.1 | ) |   |   | (33.1 | ) |   |   | (36.8 | ) |
|                                                                                                                                                                        |   |   | 4.1 |   |   |   | 7.0 |   |   |   | (2.9 | ) | 51.9 |   |   |   | 35.9 |   |   |   | 9.9 |   |   |   | 14.0 |   |   |   | (4.1 | ) |   |   | 118.4 |   |   |   | 91.9 |   |
| Depreciation                                                                                                                                                                |   |   | (1.7 | ) |   |   | (1.7 | ) |   |   | - |   |   |   | (14.6 | ) |   |   | (15.5 | ) |   |   | (3.5 | ) |   |   | (3.5 | ) |   |   | - |   |   |   | (29.2 | ) |   |   | (30.8 | ) |
| Financial charges, net and other                                                                                                                                            |   |   | (7.0 | ) |   |   | (1.2 | ) |   |   | (5.8 | ) |   |   | (8.1 | ) |   |   | (9.2 | ) |   |   | (14.3 | ) |   |   | (2.3 | ) |   |   | (12.0 | ) |   |   | (16.3 | ) |   |   | (18.3 | ) |
| Michigan business tax                                                                                                                                                       |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (1.3 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (3.1 | ) |   |   | - |   |
|                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 27.9 |   |   |   | 11.2 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 69.8 |   |   |   | 42.8 |   |
| Equity income                                                                                                                                                               |   |   | 18.3 |   |   |   | - |   |   |   | - |   |   |   | 12.9 |   |   |   | 5.4 |   |   |   | 53.4 |   |   |   | - |   |   |   | - |   | 32.4 |   |   |   | 21.0 |   |
| Net income                                                                                                                                                                  |   |   | 13.7 |   |   |   | 4.1 |   |   |   | (8.7 | ) |   |   | 12.9 |   |   |   | 5.4 |   |   |   | 45.5 |   |   |   | 8.2 |   |   |   | (16.1 | ) |   |   | 32.4 |   |   |   | 21.0 |   |

----

| (unaudited)                      |   | Three months ended June 30, 2008  |   | Six months ended June 30, 2008  |
|----------------------------------|--------|----------------------------------------|--------|--------------------------------------|
| (millions of dollars)            |   | PipeLP                                 |   |                                 | TGTC |   |   | Other |   |   | GLGT |   |   | NBPC(1) |   |   | PipeLP |   |   | TGTC |   |   | Other |   |   | GLGT |   |   | NBPC(1) |   |
| Transmission revenues            |   |                                   | 8.2    |                                 |   |   | 8.2 |   |   |   | - |   | 67.5 |   | 61.3 |   |   |   | 15.1 |   |   |   | 15.1 |   |   |   | - |   | 147.2 |   | 145.1 |   |
| Operating expenses               |   |                                   | (2.3   | )                                    |   |   | (1.1 | ) |   |   | (1.2 | ) | (13.7 | ) | (18.8 | ) |   |   | (4.5 | ) |   |   | (2.3 | ) |   |   | (2.2 | ) | (28.8 | ) | (38.2 | ) |
|                             |   |                                   | 5.9    |                                 |   |   | 7.1 |   |   |   | (1.2 | ) | 53.8 |   | 42.5 |   |   |   | 10.6 |   |   |   | 12.8 |   |   |   | (2.2 | ) | 118.4 |   | 106.9 |   |
| Depreciation                     |   |                                   | (1.7   | )                                    |   |   | (1.7 | ) |   |   | - |   | (14.6 | ) | (15.3 | ) |   |   | (3.3 | ) |   |   | (3.3 | ) |   |   | - |   | (29.2 | ) | (30.5 | ) |
| Financial charges, net and other |   |                                   | (7.5   | )                                    |   |   | (1.1 | ) |   |   | (6.4 | ) | (8.2 | ) | (9.5 | ) |   |   | (15.1 | ) |   |   | (2.0 | ) |   |   | (13.1 | ) | (16.4 | ) | (19.2 | ) |
| Michigan business tax            |   |                                   | -      |                                 |   |   | - |   |   |   | - |   | (1.3 | ) | - |   |   |   | - |   |   |   | - |   |   |   | - |   | (3.0 | ) | - |   |
|                             |   |                                   |   |                                 |   |   |   |   |   |   |   |   | 29.7 |   | 17.7 |   |   |   |   |   |   |   |   |   |   |   |   |   | 69.8 |   | 57.2 |   |
| Equity income                    |   |                                   | 22.5   |                                 |   |   | - |   |   |   | - |   |   |   | 13.8 |   |   |   | 8.7 |   |   |   | 60.6 |   |   |   | - |   |   |   | - |   |   |   | 32.4 |   |   |   | 28.2 |   |
| Net income                       |   |                                   | 19.2   |                                 |   |   | 4.3 |   |   |   | (7.6 | ) |   |   | 13.8 |   |   |   | 8.7 |   |   |   | 52.8 |   |   |   | 7.5 |   |   |   | (15.3 | ) |   |   | 32.4 |   |   |   | 28.2 |   |

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                             |   |   |                           |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|--------|--------|--------------------------------|--------|
| (unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |  Three months endedJune 30, |   |   |  Six months endedJune 30, |   |
| (millions of dollars except per common unit amounts)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 2009                             |   |   | 2008                           |   |   | 2009 |   |   | 2008 |   |
| Net Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                             | 13.7   |   |                           |   | 19.2 |   |   |   | 45.5 |   |   |   | 52.8 |   |
| Add:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                             |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Cash flows provided by Tuscarora's operating activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                             | 4.8    |   |                           |   | 4.1 |   |   |   | 12.0 |   |   |   | 10.1 |   |
| Cash distributions from Great Lakes (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                             | 21.7   |   |                           |   | 24.1 |   |   |   | 34.2 |   |   |   | 35.7 |   |
| Cash distributions from Northern Border (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                             | 22.5   |   |                           |   | 26.3 |   |   |   | 46.7 |   |   |   | 49.4 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                             | 49.0   |   |                           |   | 54.5 |   |   |   | 92.9 |   |   |   | 95.2 |   |
| Less:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                             |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Tuscarora's net income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                             | (4.1   | )      |                           |   | (4.3 | ) |   |   | (8.2 | ) |   |   | (7.5 | ) |
| Equity income from investment in Great Lakes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                             | (12.9  | )      |                           |   | (13.8 | ) |   |   | (32.4 | ) |   |   | (32.4 | ) |
| Equity income from investment in Northern Border                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                             | (5.4   | )      |                           |   | (8.7 | ) |   |   | (21.0 | ) |   |   | (28.2 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                             | (22.4  | )      |                           |   | (26.8 | ) |   |   | (61.6 | ) |   |   | (68.1 | ) |
| Partnership cash flows                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                             | 40.3   |   |                           |   | 46.9 |   |   |   | 76.8 |   |   |   | 79.9 |   |
| Partnership cash flows allocated to general partner (2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                             | (3.2   | )      |                           |   | (3.2 | ) |   |   | (6.4 | ) |   |   | (6.2 | ) |
| Partnership cash flows allocated to common units                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                             | 37.1   |   |                           |   | 43.7 |   |   |   | 70.4 |   |   |   | 73.7 |   |
| Cash distributions declared                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                             | (30.7  | )      |                           |   | (27.8 | ) |   |   | (58.5 | ) |   |   | (55.2 | ) |
| Cash distributions declared per common unit (3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $                                | 0.730  |   |                           | $      | 0.705 |   |   | $ | 1.435 |   |   | $ | 1.405 |   |
| Cash distributions paid                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                             | (27.8  | )      |                           |   | (27.4 | ) |   |   | (55.5 | ) |   |   | (53.0 | ) |
| Cash distributions paid per common unit (3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $                                | 0.705  |   |                           | $      | 0.700 |   |   | $ | 1.410 |   |   | $ | 1.365 |   |
| Weighted average common units outstanding (millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                             | 34.9   |   |                           |   | 34.9 |   |   |   | 34.9 |   |   |   | 34.9 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                             |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| (1) In accordance with the cash distribution policies of the respective pipeline assets, cash distributions from Great Lakes and Northern Border are based on their respective prior quarter financial results.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| (2) Partnership cash flows allocated to general partner represents the cash distributions declared to the general partner with respect to its two per cent interest plus an amount equal to incentive distributions.Prior to 2009, Partnership cash flows allocated to general partner were based on the cash distributions paid during the quarter to the general partner. As a result of the retrospective application of EITF 07-4, Partnership cash flows allocated to general partner in the second quarter of 2008 increased from $3.0 million to $3.2 million. Partnership cash flows allocated to the general partner for the six months ended June 30, 2008 increased from $5.4 million to $6.2 million.  |   |
| (3) 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 thenumber 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 1Year |   |   | Long-termPortion |   |
|                                 |   |                         |   |   |   |   |   |   |   |
| Senior Credit Facility due 2011      |   |                         | 475.0  |   |   |   | - |   |   |   | 475.0 |   |
| 7.13% Series A Senior Notes due 2010 |   |                         | 49.7   |   |   |   | 3.1 |   |   |   | 46.6 |   |
| 7.99% Series B Senior Notes due 2010 |   |                         | 4.7    |   |   |   | 0.5 |   |   |   | 4.2 |   |
| 6.89% Series C Senior Notes due 2012 |   |                         | 5.1    |   |   |   | 0.8 |   |   |   | 4.3 |   |
| Total                                |   |                         | 534.5  |   |   |   | 4.4 |   |   |   | 530.1 |   |

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|                                       |   | Payments Due by Period  |   |
|--------------------------------------------|--------|------------------------------|--------|
| (unaudited)(millions of dollars)           |   | Total                        |   |   | Less than 1 year |   |   | Long-termPortion |   |
|                                       |   |                         |   |   |   |   |   |   |   |
| 8.74% series Senior Notes due 2007 to 2011 |   |                         | 30.0   |   |   |   | 10.0 |   |   |   | 20.0 |   |
| 6.73% series Senior Notes due 2009 to 2018 |   |                         | 81.0   |   |   |   | 9.0 |   |   |   | 72.0 |   |
| 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                                      |   |                         | 421.0  |   |   |   | 19.0 |   |   |   | 402.0 |   |

|                                                                                                                       |   | Payments Due by Period  |   |
|----------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|--------|
| (unaudited)(millions of dollars)                                                                                           |   | Total                        |   |   | Less than 1 year |   |   | Long-termPortion |   |
|                                                                                                                       |   |                         |   |   |   |   |   |   |   |
| 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)                                                                                 |   |                         | 190.0  |   |   |   | - |   |   |   | 190.0 |   |
| Total                                                                                                                      |   |                         | 640.0  |   |   |   | 200.0 |   |   |   | 440.0 |   |
|                                                                                                                       |   |                         |   |   |   |   |   |   |   |   |   |   |
| (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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| ●   | Swaps - contractual agreements between two parties to exchange streams of payments over time according to specified terms. The Partnership and our pipeline systems enter into interest rate swaps to mitigate the impact of changes in interest rates. |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ●   | Options - contractual agreements to convey the right, but not the obligation, for the purchaser to buy or sell a specific amount of a financial instrument at a fixed price, either at a fixed date or at any time within a specified period. The Partnership and our pipeline systems enter into option agreements to mitigate the impact of changes in interestrates. |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|  Item 6.         | Exhibits    |
|-----------------------|-------------|
|                  |        |
|  No.   | Description |

| *2.1 | Agreement for Purchase and Sale of Membership Interest dated May 19, 2009 by and between Gas Transmission Northwest Corporation and TC PipeLines Intermediate Limited Partnership (Exhibit 2.1 to TC PipeLines, LP's Form 8-K filed on May 20, 2009 (File No. 000-26091)). |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *3.1 | Second Amended and Restated Agreement of Limited Partnership of TC PipeLines, LP dated July 1, 2009 (Exhibit 3.1 to TC PipeLines, LP's Form 8-K filed on July 1, 2009 (File No. 000-26091)). |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *10.1 | Common Unit Purchase Agreement dated July 1, 2009 by and between TC PipeLines, LP and TransCan Northern Ltd. (Exhibit 10.1 to TC PipeLines, LP's Form 8-K filed on July 1, 2009 (File No. 000-26091)). |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2 | Management Services Agreement dated January 1, 2002 by and between Gas Transmission Service Company, LLC (formally PG&E Gas Transmission Service Company, LLC) and North Baja Pipeline, LLC. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.1 | Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of  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:  | August 4, 2009                         | By: | /s/  Russell K. Girling Russell K. GirlingChairman, Chief Executive Officer and DirectorTC PipeLines GP, Inc. (Principal Executive Officer)  |
| Date:  | August 4, 2009                         | By: | /s/  Amy W. LeongAmy W. LeongControllerTC PipeLines GP, Inc. (Principal Financial Officer) |

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