INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2025

Income Taxes [Abstract]

Schedule of components of income tax expense

The major components of income tax expense for the years ended December 31, 2025 and 2024 are set out below:

FOR THE YEARS ENDED DEC. 31 (MILLIONS)	2025		2024
Current income tax expense	$	1,906	$	1,323
Deferred income tax (recovery)/expense
Origination and (reversal) of temporary differences	(731)		(319)
Recovery arising from previously unrecognized tax assets	(52)		(23)
Change in tax rates and new legislation	12		1
Total deferred income tax (recovery)/expense	(771)		(341)
Income tax expense	$	1,135	$	982

Schedule of income tax rates

Below is a reconciliation of the company’s Canadian domestic statutory income tax rate to the company’s effective income tax rate:

FOR THE YEARS ENDED DEC. 31	2025		2024
Statutory income tax rate	26	%	26	%
(Reduction)/increase in rate resulting from:
Portion of gains subject to different tax rates	(17)		(15)
Taxable loss attributable to non-controlling interests	11		24
International operations subject to different tax rates	3		1
Derecognition (Recognition) of deferred tax assets	—		(19)
Non-recognition of the benefit of current year’s tax losses	14		14
Non-deductible expenses (non-taxable income)	—		10
Investment and production tax credits	(13)		(10)
Other	2		4
Effective income tax rate	26	%	35	%

Schedule of deferred income tax assets and liabilities

Deferred income tax assets and liabilities as at December 31, 2025 and 2024 relate to the following:

AS AT DEC. 31 (MILLIONS)	2025		2024
Non-capital losses (Canada)	$	2,421	$	1,922
Capital losses (Canada)	5		12
Losses (U.S.)	2,336		2,833
Losses (International)	2,245		2,360
Difference in basis	(29,795)		(28,672)
Total net deferred tax liabilities	$	(22,788)	$	(21,545)

Disclosure of unrecognized deferred tax assets

The following table details the expiry date, if applicable, of the unrecognized deferred tax assets:

AS AT DEC. 31 (MILLIONS)	2025		2024
One year from reporting date	$	1,009	$	32
Two years from reporting date	26		31
Three years from reporting date	55		24
After three years from reporting date	533		465
Do not expire	2,922		2,661
Total	$	4,545	$	3,213

Schedule of components of income taxes in other comprehensive income

The components of the income taxes in other comprehensive income for the years ended December 31, 2025 and 2024 are set out below:

FOR THE YEARS ENDED DEC. 31 (MILLIONS)	2025		2024
Revaluation of property, plant and equipment	$	1,209	$	1,949
Financial contracts and power sale agreements	(30)		(116)
Fair value through OCI securities	42		160
Foreign currency translation	(3)		(1)
Revaluation of pension obligation	13		29
Total deferred tax in other comprehensive income	$	1,231	$	2,021