2001 ANNUAL REPORT  17 MANAGEMENT ’ S DISCUSSION AND ANALYSIS SEGMENT RESULTS-AT-A-GLANCE Year ended December 31 (millions of dollars) TRANSMISSION HIGHLIGHTS Net Earnings:  Net earnings from the Transmission business in 2001 were $585 million. Cost Savings:  In 2001, TransCanada achieved approximately $65 million of pre-tax operating cost savings on the wholly-owned pipelines. Alberta System Settlement:  The Alberta System settlement provides TransCanada and its customers more opera- tional and contractual flexibility than previously available. Canadian Mainline Settlement:  In 2001, the National Energy Board (NEB) approved TransCanada’s 2001 and 2002 Tolls and Tariff Application on its Canadian Mainline system. The settlement resolved all issues other than cost of capital that will be addressed at the Fair Return Application proceedings, with an NEB decision expected in mid-2002. North American Pipeline Ventures:  In 2001, TransCanada purchased an additional 5.96 per cent interest in Iroquois Gas Transmission System (Iroquois) and an additional 11.88 per cent in Portland Natural Gas Transmission System (Portland), increasing TransCanada’s total interest to 40.96 per cent and 33.29 per cent, respectively. Northern Development:  The signing of a Memorandum of Understanding with nine other major American and Canadian pipeline companies in November 2001 reinforces TransCanada’s commitment to bring Alaska North Slope natural gas to markets in Canada and the lower 48 states. 2001 2000 1999 Transmission 585 623 677 Power 157 105 40 Corporate (72) (78) (263) Continuing operations 670 650 454 Discontinued operations (67) 61 (534) Net Income Applicable to Common Shares 603 711 (80)