financing costs (Tables)

6 Months Ended

Jun. 30, 2024

financing costs

Schedule of financing costs

	Three months				Six months
Periods ended June 30 (millions)	2024		2023		2024		2023
Interest expense
Long-term debt, excluding lease liabilities – gross	$	298	$	270	$	595	$	533
Long-term debt, excluding lease liabilities – capitalized 1		(4)		(1)		(4)		(3)
Long-term debt, excluding lease liabilities		294		269		591		530
Lease liabilities (Note 19)		40		31		80		59
Short-term borrowings and other		9		9		10		12
Accretion on provisions (Note 25)		7		7		15		15
		350		316		696		616
Employee defined benefit plans net interest (Note 15)		2		2		4		4
Foreign exchange		3		—		(6)		4
Unrealized changes in virtual power purchase agreements forward element		37		7		103		26
		392		325		797		650
Interest income		(10)		(2)		(21)		(7)
	$	382	$	323	$	776	$	643
Net interest cost (Note 3)					$	673	$	616
Interest expense on long-term debt, excluding lease liabilities – capitalized 1						(4)		(3)
Employee defined benefit plans net interest						4		4
Unrealized changes in virtual power purchase agreements forward element						103		26
					$	776	$	643

1 Interest on long-term debt, excluding lease liabilities, at a composite rate of 5.3% (2023 - 3.1%) was capitalized to intangible assets with indefinite lives during the period.