TC PipeLines LP

Investor Information

TC PipeLines, LP (the Partnership) is a publicly traded limited partnership which, as an entity, is not subject to federal or state income tax. Instead, partners are required to report their allocable share of the Partnership's items of taxable income, gain, deduction or loss in their individual income tax returns as though each partner had incurred such items directly.

The Partnership determines taxable income annually and allocates it to the unitholders in accordance with their particular percentage interest in the Partnership. Unitholders are required to include their share of the Partnership's taxable income in their income for tax purposes and add the amount to the tax basis of their units. The amount allocated may exceed or be less than the amount of cash distributed in the year. Generally, cash distributions are considered a return of capital and reduce the tax basis of a limited partner's units.

Form K-1

TC PipeLines, LP intends to furnish unitholders with a Schedule K-1, which describes each unitholder's share of our income, gain, loss and deduction for the 2007 taxable year. TC PipeLines, LP unitholders can expect to receive their Schedule K-1 in March 2008.

To assist unitholders with questions concerning information contained in their Schedule K-1, TC PipeLines, LP has made available the following toll free number:

1-877-699-1091

TC PipeLines will not be preparing any partnership tax reporting information that may be required for jurisdictions outside of the United States.

Frequently Asked Questions

Important Notice:
The following information is provided for your general guidance. The information is not intended to be, nor should it be construed as, the basis of tax advice. The tax information discussed here is based on existing federal and state laws and regulations as interpreted by the General Partner. Before undertaking any tax filing, we suggest that you refer to the appropriate federal and state income tax laws or consult with your personal tax advisor.


	Q: What is a Schedule K-1?
	A: TC PipeLines, LP is a publicly traded limited partnership consisting of one general partner and many limited partners (the investing public). Therefore, all income and expenses flow through to the unitholders to be reported on their individual tax returns. The Partnership is required to file a Form 1065 with the IRS which includes a Schedule K-1 for each unitholder reporting their respective tax information.
	Q: Why am I receiving a Schedule K-1 rather than a Form 1099?
	A: Form 1099's are used to report dividends and interest (among other items), rather than partnership information.
	Q: Do I report any cash I received as my taxable income?
	A: No. You should report the income items shown on your Schedule K-1 provided to you by the Partnership.
	Q: Why is the amount of cash I received different than the amount I have to report on my individual income tax return?
	A: The cash you receive is a return of capital and represents your share of the Partnership's available cash. The amount you are required to include in your individual income tax return is your share of the Partnership's income and related items, allocated based on the number of units you owned during the year and reported on your Schedule K-1. These amounts differ due to changes in cash flow and depreciation (a non-cash expense).
	Q: How is my basis affected by cash distributions and partnership net income?
	A: The cash distributions you receive are a return of capital and decrease your basis in the Partnership. At year end your basis is increased by your share of the Partnership's taxable income allocated to you on your Schedule K-1.
	Q: What should I do if the information in my tax package is incorrect?
	A: Make any corrections directly onto the Ownership Schedule and return it to the Partnership by May 15, 2008 at the following address: TC PipeLines, LP K-1 Support P.O. Box 799060 Dallas, TX 75379-9060 or call 1-877-699-1091
	Q: Is TC PipeLines, LP registered as a tax shelter?
	A: The Partnership is registered as a tax shelter. The tax shelter number assigned by the IRS is 99140000010. This number should be used when completing Form 8271, Investor Reporting of Tax Shelter Registration Number.
	Q: What states do I have to file tax returns in as a result of owning TC PipeLines, LP common units?
	A: In addition to the filing requirements of the state in which you live, you may be required to file a non-resident tax return in the states in which the Partnership operates. The Partnership operates in eleven states, nine of which impose income tax on a Partner's share of Partnership income allocable to such state. These state are California, Illinois, Indiana, Iowa, Minnesota, Montana, Nebraska, North Dakota, and Oregon.