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REGULATORY MATTERS (Tables)
 12 Months Ended
Dec. 31, 2020
Regulated Operations [Abstract]  
Schedule of Regulatory Assets
December 31,20202019Recovery/Refund
Period Ends
(millions of Canadian dollars)
Current regulatory assets
   Federal carbon receivables1
— 145 2020
   Under-recovery of fuel costs86 119 2021
   Other current regulatory assets146 212 2021
Total current regulatory assets2
232 476 
Long-term regulatory assets
   Deferred income taxes3
3,890 3,551 Various
   Long-term debt4
429 464 2022-2046
   Pension plan receivable5
402 275 Various
Negative salvage6
246 5 Various
   Accounting policy changes7
169 175 Various
   Other long-term regulatory assets261 166 Various
Total long-term regulatory assets2
5,397 4,636 
Total regulatory assets5,629 5,112 
Current regulatory liabilities
   Purchase gas variance153 41 2021
   Other current regulatory liabilities117 202 2021
Total current regulatory liabilities8
270 243 
Long-term regulatory liabilities
   Future removal and site restoration reserves9
1,455 1,424 Various
   Regulatory liability related to US income taxes10
941 866 Various
   Pipeline future abandonment costs (Note 14)
578 454 Various
   Other long-term regulatory liabilities150 111 Various
Total long-term regulatory liabilities8
3,124 2,855 
Total regulatory liabilities3,394 3,098 

1The federal carbon balance is the difference between actual carbon costs and carbon costs recovered in rates, as well as the administration costs associated with the impacts of the federal carbon program requirements. This balance has been recovered from customers in the fourth quarter of 2020 in accordance with the OEB's approval.
2 Current regulatory assets are included in Accounts receivable and other, while long-term regulatory assets are included in Deferred amounts and other assets.
3 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 future regulator-approved rates and recovered from 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.
4 The debt balance represents our regulatory offset to the fair value adjustment to debt acquired in our merger with Spectra Energy Corp. (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 The pension plan balance represents the regulatory offset to our pension liability to the extent that it is expected to be included in regulator-approved future rates and recovered from customers. The settlement period for this balance is not determinable. In the absence of rate-regulated accounting, this regulatory balance and the related pension expense would be recorded in earnings and OCI.
6 The negative salvage balance represents the recovery in future rates of the actual cost of removal of previously retired or decommissioned plant assets, as approved by the FERC.
7 The accounting policy changes deferral reflects unamortized accumulated actuarial gains/losses and past service costs incurred by Union Gas Limited, relating to the period up to our merger with Spectra Energy, which were previously recorded in AOCI. The amortization of this balance is recognized as a component of accrual-based pension expenses, which are included in Other income/(expense) and recovered in rates, as previously approved by the OEB.
8 Current regulatory liabilities are included in Accounts payable and other, while long-term regulatory liabilities are included in Other long-term liabilities.
9 Future removal and site restoration reserves consists of amounts collected from customers, with the approval of the OEB, to fund future costs of removal and site restoration relating to property, plant and equipment. These costs are collected as part of the depreciation expense charged on property, plant and equipment that is reflected in rates. The settlement of this balance will occur over the long-term as costs are incurred. In the absence of rate-regulated accounting, depreciation rates would not include a charge for removal and site restoration and costs would be charged to earnings as incurred with recognition of revenue for amounts previously collected.
10 The regulatory liability related to US income taxes resulted from the US tax reform legislation dated December 22, 2017. These balances will be refunded to customers in accordance with the respective rate settlements approved by the FERC.
Schedule of Regulatory Liabilities
December 31,20202019Recovery/Refund
Period Ends
(millions of Canadian dollars)
Current regulatory assets
   Federal carbon receivables1
— 145 2020
   Under-recovery of fuel costs86 119 2021
   Other current regulatory assets146 212 2021
Total current regulatory assets2
232 476 
Long-term regulatory assets
   Deferred income taxes3
3,890 3,551 Various
   Long-term debt4
429 464 2022-2046
   Pension plan receivable5
402 275 Various
Negative salvage6
246 5 Various
   Accounting policy changes7
169 175 Various
   Other long-term regulatory assets261 166 Various
Total long-term regulatory assets2
5,397 4,636 
Total regulatory assets5,629 5,112 
Current regulatory liabilities
   Purchase gas variance153 41 2021
   Other current regulatory liabilities117 202 2021
Total current regulatory liabilities8
270 243 
Long-term regulatory liabilities
   Future removal and site restoration reserves9
1,455 1,424 Various
   Regulatory liability related to US income taxes10
941 866 Various
   Pipeline future abandonment costs (Note 14)
578 454 Various
   Other long-term regulatory liabilities150 111 Various
Total long-term regulatory liabilities8
3,124 2,855 
Total regulatory liabilities3,394 3,098 

1The federal carbon balance is the difference between actual carbon costs and carbon costs recovered in rates, as well as the administration costs associated with the impacts of the federal carbon program requirements. This balance has been recovered from customers in the fourth quarter of 2020 in accordance with the OEB's approval.
2 Current regulatory assets are included in Accounts receivable and other, while long-term regulatory assets are included in Deferred amounts and other assets.
3 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 future regulator-approved rates and recovered from 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.
4 The debt balance represents our regulatory offset to the fair value adjustment to debt acquired in our merger with Spectra Energy Corp. (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 The pension plan balance represents the regulatory offset to our pension liability to the extent that it is expected to be included in regulator-approved future rates and recovered from customers. The settlement period for this balance is not determinable. In the absence of rate-regulated accounting, this regulatory balance and the related pension expense would be recorded in earnings and OCI.
6 The negative salvage balance represents the recovery in future rates of the actual cost of removal of previously retired or decommissioned plant assets, as approved by the FERC.
7 The accounting policy changes deferral reflects unamortized accumulated actuarial gains/losses and past service costs incurred by Union Gas Limited, relating to the period up to our merger with Spectra Energy, which were previously recorded in AOCI. The amortization of this balance is recognized as a component of accrual-based pension expenses, which are included in Other income/(expense) and recovered in rates, as previously approved by the OEB.
8 Current regulatory liabilities are included in Accounts payable and other, while long-term regulatory liabilities are included in Other long-term liabilities.
9 Future removal and site restoration reserves consists of amounts collected from customers, with the approval of the OEB, to fund future costs of removal and site restoration relating to property, plant and equipment. These costs are collected as part of the depreciation expense charged on property, plant and equipment that is reflected in rates. The settlement of this balance will occur over the long-term as costs are incurred. In the absence of rate-regulated accounting, depreciation rates would not include a charge for removal and site restoration and costs would be charged to earnings as incurred with recognition of revenue for amounts previously collected.
10 The regulatory liability related to US income taxes resulted from the US tax reform legislation dated December 22, 2017. These balances will be refunded to customers in accordance with the respective rate settlements approved by the FERC.