UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2019

OR

o
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from            to           

Commission file number 1-10934

ENBRIDGE INC. (Exact Name of Registrant as Specified in Its Charter)

Canada	98-0377957
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

200, 425 - 1st Street S.W.

Calgary, Alberta, Canada T2P 3L8

(Address of Principal Executive Offices) (Zip Code)

(403) 231-3900

(Registrant’s Telephone Number, Including Area Code)

_______________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Shares	ENB	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer x	Accelerated filer o
Non-accelerated filer o	Smaller reporting company o
Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

The registrant had 2,023,709,816 common shares outstanding as at May 3, 2019.

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		Page
	PART I
Item 1.	Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	48
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	61
Item 4.	Controls and Procedures	61
	PART II
Item 1.	Legal Proceedings	62
Item 1A.	Risk Factors	62
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	62
Item 3.	Defaults Upon Senior Securities	62
Item 4.	Mine Safety Disclosures	62
Item 5.	Other Information	62
Item 6.	Exhibits	64
	Signatures	66

2

GLOSSARY

AOCI	Accumulated other comprehensive income/(loss)
Army Corps	United States Army Corps of Engineers
ASC	Accounting Standards Codification
ASU	Accounting Standards Update
EBITDA	Earnings before interest, income taxes and depreciation and amortization
Eddystone Rail	Eddystone Rail Company, LLC
EEP	Enbridge Energy Partners, L.P.
Enbridge	Enbridge Inc.
kbpd	thousands of barrels per day
Market Risk	Movements in foreign exchange rates, interest rates, commodity prices and the Company's share price.
NGL	Natural gas liquids
OCI	Other comprehensive income/(loss)
SEP	Spectra Energy Partners, LP
the Court	United States District Court for the Eastern District of Pennsylvania
U.S. L3R Program	United States Line 3 Replacement Program
VIE	Variable Interest Entity

3

CONVENTIONS

The terms "we", "our", "us" and "Enbridge" as used in this report refer collectively to Enbridge Inc. unless the context suggests otherwise. These terms are used for convenience only and are not intended as a precise description of any separate legal entity within Enbridge.

Unless otherwise specified, all dollar amounts are expressed in Canadian dollars, all references to “dollars”, “$” or “C$” are to Canadian dollars and all references to “US$” are to United States dollars. All amounts are provided on a before tax basis, unless otherwise stated.

FORWARD-LOOKING INFORMATION

Forward-looking information, or forward-looking statements, have been included in this quarterly report on Form 10-Q to provide information about us and our subsidiaries and affiliates, including management’s assessment of our and our subsidiaries’ future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ‘‘anticipate”, “believe”, “estimate”, “expect”, “forecast”, “intend”, “likely”, “plan”, “project”, “target” and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to the following: expected earnings before interest, income taxes and depreciation and amortization (EBITDA); expected earnings/(loss); expected earnings/(loss) per share; expected future cash flows; expected performance of the Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution, Renewable Power Generation and Transmission, and Energy Services businesses; financial strength and flexibility; expectations on sources of liquidity and sufficiency of financial resources; expected costs related to announced projects and projects under construction; expected in-service dates for announced projects and projects under construction; expected capital expenditures; expected equity funding requirements for our commercially secured growth program; expected future growth and expansion opportunities; expectations about our joint venture partners’ ability to complete and finance projects under construction; expected closing of acquisitions and dispositions and expected timing thereof; estimated future dividends; expected future actions of regulators; expected costs related to leak remediation and potential insurance recoveries; expectations regarding commodity prices; supply forecasts; expectations regarding the impact of the stock-for-stock merger transaction completed on February 27, 2017 between Enbridge and Spectra Energy Corp (the Merger Transaction) including our combined scale, financial flexibility, growth program, future business prospects and performance; United States Line 3 Replacement Program (U.S. L3R Program); expected impact of the Federal Energy Regulatory Commission (FERC) policy on treatment of income taxes; the transactions undertaken to simplify our corporate structure; our dividend payout policy; dividend growth and dividend payout expectation; expectations on impact of our hedging program; and expectations resulting from the successful execution of our 2018-2020 Strategic Plan.

Although we believe these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about the following: the expected supply of and demand for crude oil, natural gas, natural gas liquids (NGL) and renewable energy; prices of crude oil, natural gas, NGL and renewable energy; exchange rates; inflation; interest rates; availability and price of labor and construction materials; operational reliability; customer and regulatory approvals; maintenance of support and regulatory approvals for our projects; anticipated in-service dates; weather; the timing and closing of dispositions; the realization of anticipated benefits and synergies of the Merger Transaction; governmental legislation; acquisitions and the timing thereof; the success of integration plans; impact of the dividend policy on our future cash flows; credit ratings; capital project funding; expected EBITDA; expected earnings/(loss); expected earnings/(loss) per share; expected future cash flows and estimated future dividends. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for our services. Similarly, exchange rates, inflation and interest rates impact the economies and business environments in which we operate and may impact levels of demand for our services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty, particularly with

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respect to the impact of the Merger Transaction on us, expected EBITDA, expected earnings/(loss), expected earnings/(loss) per share, or estimated future dividends. The most relevant assumptions associated with forward-looking statements regarding announced projects and projects under construction, including estimated completion dates and expected capital expenditures, include the following: the availability and price of labor and construction materials; the effects of inflation and foreign exchange rates on labor and material costs; the effects of interest rates on borrowing costs; the impact of weather and customer, government and regulatory approvals on construction and in-service schedules and cost recovery regimes.

Our forward-looking statements are subject to risks and uncertainties pertaining to the realization of anticipated benefits and synergies of the Merger Transaction, operating performance, regulatory parameters, changes in regulations applicable to our business, dispositions, the transactions undertaken to simplify our corporate structure, our dividend policy, project approval and support, renewals of rights-of-way, weather, economic and competitive conditions, public opinion, changes in tax laws and tax rates, changes in trade agreements, exchange rates, interest rates, commodity prices, political decisions and supply of and demand for commodities, including but not limited to those risks and uncertainties discussed in this quarterly report on Form 10-Q and in our other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and our future course of action depends on management’s assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge Inc. assumes no obligation to publicly update or revise any forward-looking statements made in this quarterly report on Form 10-Q or otherwise, whether as a result of new information, future events or otherwise. All forward-looking statements, whether written or oral, attributable to us or persons acting on our behalf, are expressly qualified in their entirety by these cautionary statements.

5

PART I - FINANCIAL INFORMATION

6

ITEM 1. FINANCIAL STATEMENTS

ENBRIDGE INC.

CONSOLIDATED STATEMENTS OF EARNINGS

	Three months ended March 31,
	2019		2018
(unaudited; millions of Canadian dollars, except per share amounts)
Operating revenues
Commodity sales	6,632		7,268
Gas distribution sales	1,876		1,926
Transportation and other services	4,348		3,532
Total operating revenues (Note 3)	12,856		12,726
Operating expenses
Commodity costs	6,565		6,997
Gas distribution costs	1,207		1,324
Operating and administrative	1,625		1,641
Depreciation and amortization	840		824
Impairment of long-lived assets	—		1,062
Total operating expenses	10,237		11,848
Operating income	2,619		878
Income from equity investments	413		335
Other income/(expense)
Net foreign currency gain/(loss)	214		(185	)
Other	46		65
Interest expense	(685	)	(656	)
Earnings before income taxes	2,607		437
Income tax (expense)/recovery (Note 12)	(584	)	73
Earnings	2,023		510
(Earnings)/loss attributable to noncontrolling interests and redeemable noncontrolling interests	(37	)	24
Earnings attributable to controlling interests	1,986		534
Preference share dividends	(95	)	(89	)
Earnings attributable to common shareholders	1,891		445
Earnings per common share attributable to common shareholders (Note 5)	0.94		0.26
Diluted earnings per common share attributable to common shareholders (Note 5)	0.94		0.26

 See accompanying notes to the interim consolidated financial statements.

7

ENBRIDGE INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Three months ended March 31,
	2019		2018
(unaudited; millions of Canadian dollars)
Earnings	2,023		510
Other comprehensive income/(loss), net of tax
Change in unrealized gain/(loss) on cash flow hedges	(192	)	66
Change in unrealized gain/(loss) on net investment hedges	94		(184	)
Other comprehensive income from equity investees	12		14
Reclassification to earnings of (gain)/loss on cash flow hedges	11		37
Reclassification to earnings of pension and other postretirement benefits (OPEB) amounts	38		(39	)
Foreign currency translation adjustments	(1,291	)	1,579
Other comprehensive income/(loss), net of tax	(1,328	)	1,473
Comprehensive income	695		1,983
Comprehensive (income)/loss attributable to noncontrolling interests and redeemable noncontrolling interests	13		(147	)
Comprehensive income attributable to controlling interests	708		1,836
Preference share dividends	(95	)	(89	)
Comprehensive income attributable to common shareholders	613		1,747

See accompanying notes to the interim consolidated financial statements.

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ENBRIDGE INC.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

	Three months ended March 31,
	2019		2018
(unaudited; millions of Canadian dollars, except per share amounts)
Preference shares (Note 5)
Balance at beginning and end of period	7,747		7,747
Common shares (Note 5)
Balance at beginning of period	64,677		50,737
Dividend Reinvestment and Share Purchase Plan	—		374
Shares issued on exercise of stock options	51		16
Balance at end of period	64,728		51,127
Additional paid-in capital
Balance at beginning of period	—		3,194
Stock-based compensation	4		17
Options exercised	(43	)	(6	)
Dilution gain on Spectra Energy Partners, LP restructuring	—		1,136
Change in reciprocal interest	109		—
Dilution loss and other	2		(28	)
Balance at end of period	72		4,313
Deficit
Balance at beginning of period	(5,538	)	(2,468	)
Earnings attributable to controlling interests	1,986		534
Preference share dividends	(95	)	(89	)
Dividends paid to reciprocal shareholder	5		7
Modified retrospective adoption of ASC 606 Revenue from Contracts with Customers	—		(86	)
Redemption value adjustment attributable to redeemable noncontrolling interests	—		120
Other	2		—
Balance at end of period	(3,640	)	(1,982	)
Accumulated other comprehensive income/(loss) (Note 9)
Balance at beginning of period	2,672		(973	)
Other comprehensive income/(loss) attributable to common shareholders, net of tax	(1,278	)	1,302
Other	55		—
Balance at end of period	1,449		329
Reciprocal shareholding
Balance at beginning of period	(88	)	(102	)
Change in reciprocal interest	37		—
Balance at end of period	(51	)	(102	)
Total Enbridge Inc. shareholders’ equity	70,305		61,432
Noncontrolling interests
Balance at beginning of period	3,965		7,597
Earnings attributable to noncontrolling interests	37		23
Other comprehensive income/(loss) attributable to noncontrolling interests, net of tax
Change in unrealized gain/(loss) on cash flow hedges	(1	)	4
Foreign currency translation adjustments	(49	)	152
Reclassification to earnings of loss on cash flow hedges	—		8
	(50	)	164
Comprehensive income attributable to noncontrolling interests	(13	)	187
Spectra Energy Partners, LP restructuring	—		(1,486	)
Contributions	3		8
Distributions	(46	)	(209	)
Redemption of preferred shares held by subsidiary (Note 10)	(300	)	—
Other	5		(15	)
Balance at end of period	3,614		6,082
Total equity	73,919		67,514
Dividends paid per common share	0.738		0.671
Earnings per common share attributable to common shareholders (Note 5)	0.94		0.26
Diluted earnings per common share attributable to common shareholders (Note 5)	0.94		0.26

See accompanying notes to the interim consolidated financial statements.

9

ENBRIDGE INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Three months ended March 31,
	2019		2018
(unaudited; millions of Canadian dollars)
Operating activities
Earnings	2,023		510
Adjustments to reconcile earnings to net cash provided by operating activities:
Depreciation and amortization	840		824
Deferred income tax (recovery)/expense	435		(147	)
Changes in unrealized (gain)/loss on derivative instruments, net (Note 11)	(538	)	260
Earnings from equity investments	(413	)	(335	)
Distributions from equity investments	466		320
Impairment of long-lived assets	—		1,062
Other	30		78
Changes in operating assets and liabilities	(667	)	622
Net cash provided by operating activities	2,176		3,194
Investing activities
Capital expenditures	(1,612	)	(1,635	)
Long-term investments and restricted long-term investments	(565	)	(222	)
Distributions from equity investments in excess of cumulative earnings	139		57
Additions to intangible assets	(26	)	(258	)
Affiliate loans, net	(84	)	(10	)
Net cash used in investing activities	(2,148	)	(2,068	)
Financing activities
Net change in short-term borrowings	(154	)	(443	)
Net change in commercial paper and credit facility draws	2,773		(465	)
Debenture and term note issues, net of issue costs	1,195		2,061
Debenture and term note repayments	(1,789	)	(996	)
Debt extinguishment costs	—		(63	)
Contributions from noncontrolling interests	3		8
Distributions to noncontrolling interests	(46	)	(209	)
Contributions from redeemable noncontrolling interests	—		20
Distributions to redeemable noncontrolling interests	—		(84	)
Common shares issued	18		13
Preference share dividends	(90	)	(87	)
Common share dividends	(1,486	)	(764	)
Redemption of preferred shares held by subsidiary (Note 10)	(300	)	—
Other	(25	)	—
Net cash provided by/(used in) financing activities	99		(1,009	)
Effect of translation of foreign denominated cash and cash equivalents and restricted cash	(7	)	19
Net increase in cash and cash equivalents and restricted cash	120		136
Cash and cash equivalents and restricted cash at beginning of period	637		587
Cash and cash equivalents and restricted cash at end of period	757		723

See accompanying notes to the interim consolidated financial statements.

10

ENBRIDGE INC.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

	March 31, 2019		December 31, 2018
(unaudited; millions of Canadian dollars; number of shares in millions)
Assets
Current assets
Cash and cash equivalents	702		518
Restricted cash	55		119
Accounts receivable and other	6,486		6,517
Accounts receivable from affiliates	92		79
Inventory	1,047		1,339
	8,382		8,572
Property, plant and equipment, net	93,875		94,540
Long-term investments	16,902		16,707
Restricted long-term investments	356		323
Deferred amounts and other assets	9,505		8,558
Intangible assets, net	2,301		2,372
Goodwill	33,895		34,459
Deferred income taxes	1,292		1,374
Total assets	166,508		166,905
Liabilities and equity
Current liabilities
Short-term borrowings	870		1,024
Accounts payable and other	7,331		9,863
Accounts payable to affiliates	30		40
Interest payable	573		669
Current portion of long-term debt	4,321		3,259
	13,125		14,855
Long-term debt	60,680		60,327
Other long-term liabilities	9,044		8,834
Deferred income taxes	9,740		9,454
	92,589		93,470
Contingencies (Note 15)
Equity
Share capital
Preference shares	7,747		7,747
Common shares (2,024 and 2,022 outstanding at March 31, 2019 and December 31, 2018, respectively)	64,728		64,677
Additional paid-in capital	72		—
Deficit	(3,640	)	(5,538	)
Accumulated other comprehensive income (Note 9)	1,449		2,672
Reciprocal shareholding	(51	)	(88	)
Total Enbridge Inc. shareholders’ equity	70,305		69,470
Noncontrolling interests	3,614		3,965
	73,919		73,435
Total liabilities and equity	166,508		166,905

See accompanying notes to the interim consolidated financial statements.

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NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1. BASIS OF PRESENTATION

The accompanying unaudited interim consolidated financial statements of Enbridge Inc. ("we", "our", "us" and "Enbridge") have been prepared in accordance with generally accepted accounting principles in the United States of America (U.S. GAAP) and Regulation S-X for interim consolidated financial information. They do not include all of the information and notes required by U.S. GAAP for annual consolidated financial statements and should therefore be read in conjunction with our audited updated consolidated financial statements and notes for the year ended December 31, 2018, as filed on Form 8-K with the Securities and Exchange Commission on May 10, 2019. In the opinion of management, the interim consolidated financial statements contain all normal recurring adjustments necessary to present fairly our financial position, results of operations and cash flows for the interim periods reported. These interim consolidated financial statements follow the same significant accounting policies as those included in our audited updated consolidated financial statements for the year ended December 31, 2018, except for the adoption of new standards (Note 2). Amounts are stated in Canadian dollars unless otherwise noted.

Our operations and earnings for interim periods can be affected by seasonal fluctuations within the gas distribution utility businesses, as well as other factors such as the supply of and demand for crude oil and natural gas, and may not be indicative of annual results.

2. CHANGES IN ACCOUNTING POLICIES

ADOPTION OF NEW STANDARDS

Cloud Computing Arrangements

Effective January 1, 2019, we adopted Accounting Standards Update (ASU) 2018-15 on a prospective basis. The new standard was issued to provide guidance on the accounting for implementation costs incurred in a cloud computing arrangement (CCA) that is a service contract. The ASU specifies that an entity would apply Accounting Standards Codification (ASC) 350-40, Internal-use software, to determine which implementation costs related to a hosting arrangement that is a service contract should be capitalized and which should be expensed. The amendments in the update also require that the capitalized costs be amortized on a straight-line basis generally over the term of the arrangement and presented in the same income statement line as fees paid for the hosting service, in addition to specifying that the capitalized costs must be presented on the same balance sheet line as the prepayment of fees related to the hosting arrangement. The ASU requires similar consistency in classifications from a cash flow statement perspective. The adoption of this ASU did not have a material impact on our consolidated financial statements.

Improvements to Accounting for Hedging Activities

Effective January 1, 2019, we adopted ASU 2017-12 on a modified retrospective basis. The new standard was issued with the objective of better aligning a company’s risk management activities and the resulting hedge accounting reflected in the financial statements. The amendments allow cash flow hedging of contractually specified components in financial and non-financial items. As a result of the new standard, hedge ineffectiveness will no longer be measured or recorded, and hedging instruments’ fair value changes will be recorded in the same income statement line as the hedged item. The adoption of this accounting update did not have a material impact on our consolidated financial statements.

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Amending the Amortization Period for Certain Callable Debt Securities Purchased at a Premium

Effective January 1, 2019, we adopted ASU 2017-08 on a modified retrospective basis. The new standard was issued with the intent of shortening the amortization period to the earliest call date for certain callable debt securities held at a premium. The adoption of this accounting update did not have a material impact on our consolidated financial statements.

Recognition of Leases

Effective January 1, 2019 we adopted ASU 2016-02 Leases (Topic 842) using the modified retrospective approach.

We recognize an arrangement as a lease when a customer has the right to obtain substantially all of the economic benefits from the use of an asset, as well as the right to direct the use of the asset. We recognize right-of-use (ROU) assets and the related lease liabilities on the statement of financial position for operating lease arrangements with a term of 12 months or longer. We do not separate non-lease components from the associated lease components of our lessee contracts and account for both components as a single lease component. We combine lease and non-lease components within a contract for operating lessor leases when certain conditions are met. ROU assets are assessed for impairment using the same approach as is applied for other long-lived assets, as described under the Impairment section of the Significant Accounting Policies Note 2 in the annual consolidated financial statements.

Lease liabilities and ROU assets require the use of judgment and estimates, which are applied in determining the term of a lease, appropriate discount rates, whether an arrangement contains a lease, whether there are any indicators of impairment for ROU assets and whether any ROU assets should be grouped with other long-lived assets for impairment testing.

In adopting Topic 842, we elected the package of practical expedients permitted under the transition guidance. The election to apply the package of practical expedients allows an entity to not apply the new lease standard to the prior year comparative periods in the year of adoption. The application of the package of practical expedients also permits entities not to reassess whether any expired or existing contracts contain leases in accordance with the new guidance, lease classifications, and whether initial direct costs capitalized under current guidance continue to meet the definition of initial direct costs under the new guidance. We also elected the practical expedient related to land easements, allowing us to carry forward our accounting treatment for land easements on existing agreements that had commenced prior to January 1, 2019.

On January 1, 2019, ROU assets and corresponding lease liabilities of $771 million were recorded in connection with the adoption of Topic 842. When added to the $85 million of pre-existing liabilities relating to operating leases for which we no longer utilize the leased assets, total lease liabilities at January 1, 2019 were $856 million. All lease liabilities were measured using a weighted average discount rate of 4.32%. The adoption of this standard had no impact to the Consolidated Statements of Earnings, Comprehensive Income, Changes in Equity or Cash Flows during the period.

13

FUTURE ACCOUNTING POLICY CHANGES

Clarifying Interaction between Collaborative Arrangements and Revenue from Contracts with Customers

In November 2018, ASU 2018-18 was issued to provide clarity on when transactions between entities in a collaborative arrangement should be accounted for under the new revenue standard, ASC 606. In determining whether transactions in collaborative arrangements should be accounted under the revenue standard, the update specifies that entities shall apply unit of account guidance to identify distinct goods or services and whether such goods and services are separately identifiable from other promises in the contract. ASU 2018-18 also precludes entities from presenting transactions with a collaborative partner which are not in scope of the new revenue standard together with revenue from contracts with customers. The accounting update is effective January 1, 2020 and early adoption is permitted. We are currently assessing the impact of the new standard on our consolidated financial statements.

Improvements to Related Party Guidance for Variable Interest Entities

ASU 2018-17 was issued in October 2018 to improve the related party guidance on determining whether fees paid to decision makers and service providers (“decision-maker fees”) are variable interests. Under the new guidance, reporting entities must consider indirect interests held through related parties in common control arrangements on a proportionate basis, rather than as the equivalent of a direct interest in its entirety, when determining if a decision maker’s fees constitute a variable interest. The accounting update is effective January 1, 2020 and must be applied on a retrospective basis. We are currently assessing the impact of the new standard on our consolidated financial statements.

Disclosure Effectiveness

In August 2018, the Financial Accounting Standards Board issued two amendments as a part of its disclosure framework project aimed to improve the effectiveness of disclosures in the notes to financial statements.

ASU 2018-14 was issued in August 2018 to improve disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The amendment modifies the current guidance by adding and removing several disclosure requirements while also clarifying the guidance on current disclosure requirements. ASU 2018-14 is effective January 1, 2021 and entities are permitted to adopt the standard early. We are currently assessing the impact of the new standard on our consolidated financial statements.

ASU 2018-13 was issued to improve the disclosure requirements for fair value measurements by eliminating and modifying some disclosures, while also adding new disclosures. This update is effective January 1, 2020, however entities are permitted to early adopt the eliminated or modified disclosures. We are currently assessing the impact of the new standard on our consolidated financial statements.

Accounting for Credit Losses

ASU 2016-13 was issued in June 2016 with the intent of providing financial statement users with more useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. Current treatment uses the incurred loss methodology for recognizing credit losses that delay the recognition until it is probable a loss has been incurred. The accounting update adds a new impairment model, known as the current expected credit loss model, which is based on expected losses rather than incurred losses. Under the new guidance, an entity will recognize as an allowance its estimate of expected credit losses, which the Financial Accounting Standards Board believes will result in more timely recognition of such losses.

Further, ASU 2018-19 was issued in November 2018 to clarify that operating lease receivables should be accounted for under the new leases standard, ASC 842, and are not within the scope of ASC 326, Financial Instruments - Credit Losses. Both accounting updates are effective January 1, 2020. We are currently assessing the impact of the new standard on our consolidated financial statements.

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3. REVENUES

Effective January 1, 2019, we renamed the Green Power and Transmission segment to Renewable Power Generation and Transmission. The presentation of the prior years' tables has been revised in order to align with the current presentation.

REVENUE FROM CONTRACTS WITH CUSTOMERS

Major Products and Services

	Liquids Pipelines	Gas Transmission and Midstream	Gas Distribution	Renewable Power Generation and Transmission	Energy Services	Eliminations and Other	Consolidated
Three months ended March 31, 2019
(millions of Canadian dollars)
Transportation revenues	2,214	1,137	249	—	—	—	3,600
Storage and other revenues	27	53	54	—	—	—	134
Gas gathering and processing revenues	—	116	—	—	—	—	116
Gas distribution revenue	—	—	1,856	—	—	—	1,856
Electricity and transmission revenues	—	—	—	50