The increase in general, administrative and support costs in 2001 reflects the increased activity in TransCanada’s Power business, as well as the company’s focus on future growth in this segment. MANAGEMENT ’ SDISCUSSIONANDANAL YSIS NORTHEASTERN U.S. OPERATIONS CALSTOCK CASTLETON TRANSCANADA 28 T ransCanada com- pleted construction  of an enhanced wood waste-fired power plant at Calstock, Ontario in mid-2000 and trans- ferred it to Power LP in October 2000. In July 1999, Power LP acquired a combined- cycle plant located at Castleton-on-Hudson, New York. 1 Currently under construction. 2 At December 31, 2001, TransCanada held a 35.6 per cent ownership interest in Power LP. 3 TransCanada buys 560 MW of the Sundance A and 353 MW of the Sundance B power plant output through long-term PPAs. Northeastern U.S. Operations includes the 560 MW gas-fired OSP plant, the output from the 64 MW gas-fired Castleton power plant, the 60 MW Curtis Palmer hydroelectric power plant and the Westborough, Massachusetts power marketing office (TCPM). TCPM markets elec- tricity to a variety of customers throughout the northeastern U.S., both directly and through distribution re-sellers. increased its earnings in 2001 by successfully providing electricity supply services to a variety of direct industrial The Northeastern U.S. Operations’ operating income in 2001 increased $91 million or 134 per cent compared to 2000. This was primarily due to the ability to capitalize on unprece- dented price volatility throughout 2001 and significantly increased commercial activity of TCPM in 2001. Through prudent use of physical plant to backstop its marketing activities, supplemented with additional contract supplies and markets, TCPM was able to optimize its assets and capture market opportunities through this volatile period. TCPM sells the majority of the output from the northeastern plants under long-term arrangements, although contin- ued supply flexibility is fundamental to Power’s growth and success in the deregulated New England and New York markets. In addition, TCPM expanded its marketing efforts and Power’s net earnings of $105 million in 2000 increased by $65 million compared to 1999. This increase included a $23 million after-tax gain on the sale of TransCanada’s interest in the Hermiston Power Partnership in 2000, and reflected higher marketing and trading earnings; the acquisition of the remaining 29.9 per cent ownership interest in Ocean State in October 2000; and increased ownership interest and strong plant performance in the Power LP. Higher revenues and operating expenses in the Power segment reflect higher power prices, the addition of new facilities, and increased commercial activity in 2001 when compared to 2000 and 1999. NOMINAL GENERATING CAPACITY OF POWER PLANTS (MW) TransCanada Power Ocean State 560 MacKay River 1 165 Carseland 80 Bear Creek 1 80 Curtis Palmer 60 Redwater  40 Cancarb 27 Power LP 2 Williams Lake 66 Castleton 64 Tunis 43 Kapuskasing 40 Nipigon 40 North Bay 40 Calstock 35 Other 3 Sundance A 560 Sundance B 353 2,253