REGULATORY MATTERS (Tables)

12 Months Ended

Dec. 31, 2019

Regulated Operations [Abstract]

Schedule of Regulatory Assets

Accounting for rate-regulated activities has resulted in the recognition of the following significant regulatory assets and liabilities on the Consolidated Statements of Financial Position:

December 31,	Recovery/Refund Period Ends	2019		2018
(millions of Canadian dollars)
Regulatory assets/(liabilities), net
Liquids Pipelines
Deferred income taxes1	Various	1,767		1,673
Tolling deferrals	Various	(25	)	(28	)
Recoverable income taxes	Through 2040	24		27
Pipeline future abandonment costs2	Various	(293	)	(201	)
Other deferrals	Various	32		—
Gas Transmission and Midstream
Deferred income taxes1	Various	511		826
Regulatory liability related to income taxes3	Various	(866	)	(912	)
Long-term debt4	Various	108		124
Pipeline future abandonment costs2	Various	(159	)	(111	)
Other	Various	215		205
Gas Distribution and Storage
Deferred income taxes1	Various	1,273		1,132
Purchased gas variance	2020	(19	)	197
Pension plans and OPEB	Various	275		118
Future removal and site restoration reserves5	Various	(1,424	)	(1,107	)
Federal carbon program	2020	145		—
Long-term debt4	Various	362		387
Constant dollar net salvage adjustment	2018	—		6
Other	Various	88		(4	)

1 The deferred income taxes balance represents the regulatory offset to deferred income tax liabilities to the extent that it is expected to be included in regulator-approved future rates and recovered from future customers. The recovery period depends on the timing of the reversal of the temporary differences. In the absence of rate-regulated accounting, this regulatory balance and the related earnings impact would not be recorded.

2 The pipeline future abandonment costs liability results from amounts collected and set aside in accordance with the CER’s LMCI to cover future abandonment costs for CER regulated Canadian pipelines. Funds collected are included in Restricted long-term investments (Note 14).Concurrently, we reflect the future abandonment cost as a regulatory liability. The settlement of this balance will occur as pipeline abandonment costs are incurred.

3 Relates to the establishment of a regulatory liability as a result of the United States tax reform legislation enacted December 22, 2017.

4 The debt balance represents our regulatory offset to the fair value adjustment to debt that resulted from the merger with Spectra Energy. The offset is viewed as a proxy for the regulatory asset that would be recorded in the event such debt was extinguished at an amount higher than the carrying value.

5 Future removal and site restoration reserves result from amounts collected from customers by us, with the approval of the OEB, to fund future costs for removal and site restoration relating to property, plant and equipment. These costs are collected as part of depreciation charged on property, plant and equipment that is recorded in rates. The balance represents the amount that we have collected from customers, net of actual costs expended on removal and site restoration. The settlement of this balance will occur over the long-term as future removal and site restoration costs are incurred. In the absence of rate-regulated accounting, costs incurred for removal and site restoration would be charged to earnings as incurred with recognition of revenue for amounts previously collected.

Schedule of Regulatory Liabilities

Accounting for rate-regulated activities has resulted in the recognition of the following significant regulatory assets and liabilities on the Consolidated Statements of Financial Position:

December 31,	Recovery/Refund Period Ends	2019		2018
(millions of Canadian dollars)
Regulatory assets/(liabilities), net
Liquids Pipelines
Deferred income taxes1	Various	1,767		1,673
Tolling deferrals	Various	(25	)	(28	)
Recoverable income taxes	Through 2040	24		27
Pipeline future abandonment costs2	Various	(293	)	(201	)
Other deferrals	Various	32		—
Gas Transmission and Midstream
Deferred income taxes1	Various	511		826
Regulatory liability related to income taxes3	Various	(866	)	(912	)
Long-term debt4	Various	108		124
Pipeline future abandonment costs2	Various	(159	)	(111	)
Other	Various	215		205
Gas Distribution and Storage
Deferred income taxes1	Various	1,273		1,132
Purchased gas variance	2020	(19	)	197
Pension plans and OPEB	Various	275		118
Future removal and site restoration reserves5	Various	(1,424	)	(1,107	)
Federal carbon program	2020	145		—
Long-term debt4	Various	362		387
Constant dollar net salvage adjustment	2018	—		6
Other	Various	88		(4	)

1 The deferred income taxes balance represents the regulatory offset to deferred income tax liabilities to the extent that it is expected to be included in regulator-approved future rates and recovered from future customers. The recovery period depends on the timing of the reversal of the temporary differences. In the absence of rate-regulated accounting, this regulatory balance and the related earnings impact would not be recorded.

2 The pipeline future abandonment costs liability results from amounts collected and set aside in accordance with the CER’s LMCI to cover future abandonment costs for CER regulated Canadian pipelines. Funds collected are included in Restricted long-term investments (Note 14).Concurrently, we reflect the future abandonment cost as a regulatory liability. The settlement of this balance will occur as pipeline abandonment costs are incurred.

3 Relates to the establishment of a regulatory liability as a result of the United States tax reform legislation enacted December 22, 2017.

4 The debt balance represents our regulatory offset to the fair value adjustment to debt that resulted from the merger with Spectra Energy. The offset is viewed as a proxy for the regulatory asset that would be recorded in the event such debt was extinguished at an amount higher than the carrying value.

5 Future removal and site restoration reserves result from amounts collected from customers by us, with the approval of the OEB, to fund future costs for removal and site restoration relating to property, plant and equipment. These costs are collected as part of depreciation charged on property, plant and equipment that is recorded in rates. The balance represents the amount that we have collected from customers, net of actual costs expended on removal and site restoration. The settlement of this balance will occur over the long-term as future removal and site restoration costs are incurred. In the absence of rate-regulated accounting, costs incurred for removal and site restoration would be charged to earnings as incurred with recognition of revenue for amounts previously collected.