Obligations and Commitments Total long-term debt at December 31, 2001 was $9.830 billion compared to $10.540 billion at December 31, 2000. Total non-recourse debt of joint ventures at December 31, 2001 was $1.339 billion, relatively unchanged from  $1.325 billion in the prior year. Total notes payable, including those of joint ventures, at December 31, 2001 were  $343 million compared to $200 million at December 31, 2000. The debt and notes payable of joint ventures are non-recourse to TransCanada. The security provided by each joint venture is limited to the rights and assets of that joint venture and does not extend to the rights and assets of TransCanada, except to the extent of TransCanada’s investment. At December 31, 2001, mandatory retirements resulting from maturities and sinking fund obligations related to long-term debt and the company’s proportionate share of the non-recourse debt of joint ventures are as follows. TransCanada has no significant operating leases at December 31, 2001. The company had no outstanding guarantees related to the long-term debt of unrelated third parties at December 31, 2001. TransCanada and its affiliates have long-term natural gas transportation and natural gas purchase arrangements as well as other pur- chase obligations, all of which are transacted at market prices and in the normal course of business. TransCanada has guaranteed the equity undertaking of a subsidiary which supports the payment of debt obligations of TransGas de Occidente, S.A. (TransGas), in the event a change of law would result in insufficient funds in TransGas to pay the interest and principal on its public US$240 million debt obligations. The company has an indirect 46.5 per cent interest in TransGas. Under the terms of the agreement, the company and another major multinational company, may be required to fund more than their proportionate share of debt obligations of TransGas in the event that the minority shareholders fail to contribute. Any payments made by TransCanada under this agreement convert into shares of TransGas. The potential exposure is contingent on the impact of any change of law on TransGas’ ability to service the debt. From the issuance of the debt in 1995 to date, there has been no change in applicable law and thus no exposure to TransCanada. The debt matures in 2010. At December 31, 2001, TransCanada held a 35.6 per cent interest in Power LP which is a publicly-held limited partnership. On June 30, 2017, the partnership will redeem all units outstanding, not held directly or indirectly by TransCanada, at their then fair market value, being the average of the fair market values assigned thereto by independent valuators, plus all declared and unpaid distributions of distributable cash thereon (the Redemption Price). The Redemption Price will be satisfied by TransCanada in cash or, at the election of TransCanada, in com- mon shares of TransCanada or a combination of cash and common shares. TransCanada has granted a $50 million operating line of credit to Power LP. As at December 31, 2001, the amount borrowed against this line of credit was $15.9 million compared to $4.0 million at December 31, 2000. At December 31, 2001, TransCanada held a 33.4 per cent interest in TC PipeLines, LP which is a publicly-held limited partnership. On May 28, 2001, TC PipeLines, LP renewed its $40 million unsecured two-year revolving credit facility (TransCanada Credit Facility) with a subsidiary of TransCanada. At December 31, 2001 and 2000, the partnership had no amount outstanding under the TransCanada Credit Facility. 2002 2003 2004 2005 2006 2007+ Long-term debt 483 550 370 358 503 7,566 Non-recourse debt of joint ventures  44 231 38 339 26 661 December 31 (millions of dollars) MANDATORY RETIREMENTS TRANSCANADA 34 MANAGEMENT ’ SDISCUSSIONANDANALYSIS