UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended March 31, 2021

OR

☐ 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
6.375% Fixed-to-Floating Rate Subordinated Notes Series 2018-B due 2078	ENBA	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	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

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 ☐ No x

The registrant had 2,025,576,385 common shares outstanding as at April 30, 2021.

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		Page
	PART I
Item 1.	Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	33
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	51
Item 4.	Controls and Procedures	51
	PART II
Item 1.	Legal Proceedings	52
Item 1A.	Risk Factors	52
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	52
Item 3.	Defaults Upon Senior Securities	52
Item 4.	Mine Safety Disclosures	52
Item 5.	Other Information	52
Item 6.	Exhibits	53
	Signatures	54

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GLOSSARY

AOCI	Accumulated other comprehensive income/(loss)
Army Corps	United States Army Corps of Engineers
ASU	Accounting Standards Update
CPP Investments	Canada Pension Plan Investment Board
DAPL	Dakota Access Pipeline
DCP Midstream	DCP Midstream, LLC
EBITDA	Earnings before interest, income taxes and depreciation and amortization
EEP	Enbridge Energy Partners, L.P.
EIS	Environmental Impact Statement
EMF	Éolien Maritime France SAS
Enbridge	Enbridge Inc.
Exchange Act	United States Securities Exchange Act of 1934, as amended
LNG	Liquified natural gas
NGL	Natural gas liquids
SEC	US Securities and Exchange Commission
SEP	Spectra Energy Partners, LP
the Straits	Straits of Mackinac
OCI	Other comprehensive income/(loss)
OPEB	Other postretirement benefit obligations
Texas Eastern	Texas Eastern Transmission, LP

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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 (US) 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: our corporate vision and strategy, including strategic priorities and enablers; the COVID-19 pandemic and the duration and impact thereof; energy intensity and emissions reduction targets and related environment, social and governance matters; diversity and inclusion goals; expected supply of, demand for and prices of crude oil, natural gas, natural gas liquids (NGL), liquified natural gas (LNG) and renewable energy; energy transition; anticipated utilization of our existing assets; expected earnings before interest, income taxes and depreciation and amortization (EBITDA); expected earnings/(loss); expected future cash flows and distributable cash flow; dividend growth and payout policy; financial strength and flexibility; expectations on sources of liquidity and sufficiency of financial resources; expected strategic priorities and performance of the Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation and Energy Services businesses; expected costs related to announced projects and projects under construction; expected in-service dates for announced projects and projects under construction and for maintenance; expected capital expenditures, investment capacity and capital allocation priorities; 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 the timing thereof; expected benefits of transactions, including the realization of efficiencies, synergies and cost savings; expected future actions of regulators and courts; toll and rate cases discussions and filings, including Mainline System contracting; anticipated competition; US Line 3 Replacement Program (US L3R Program), including anticipated in-service dates and capital costs; and Line 5 dual pipelines and related litigation and other matters.

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 COVID-19 pandemic and the duration and impact thereof; the expected supply of and demand for crude oil, natural gas, NGL and renewable energy; prices of crude oil, natural gas, NGL and renewable energy; anticipated utilization of assets; 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 acquisitions and dispositions; the realization of anticipated benefits and synergies of transactions; governmental legislation; litigation; estimated future dividends and impact of our dividend policy on our future cash flows; our credit ratings; capital project funding; hedging program; expected EBITDA; expected earnings/(loss); expected future cash flows; and expected distributable cash flow. 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 and the COVID-19 pandemic 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 respect to expected EBITDA, expected

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earnings/(loss), expected future cash flows, expected distributable cash flow 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, customer, government, court and regulatory approvals on construction and in-service schedules and cost recovery regimes; and the COVID-19 pandemic and the duration and impact thereof.

Our forward-looking statements are subject to risks and uncertainties pertaining to the successful execution of our strategic priorities, operating performance, legislative and regulatory parameters; litigation, including with respect to the Dakota Access Pipeline (DAPL) and the Line 5 dual pipelines; acquisitions, dispositions and other transactions and the realization of anticipated benefits therefrom; 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; exchange rates; interest rates; commodity prices; political decisions; the supply of, demand for and prices of commodities; and the COVID-19 pandemic, 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 US 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 assumes no obligation to publicly update or revise any forward-looking statement 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.

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PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

ENBRIDGE INC.

CONSOLIDATED STATEMENTS OF EARNINGS

	Three months ended March 31,
	2021	2020
(unaudited; millions of Canadian dollars, except per share amounts)
Operating revenues
Commodity sales	6,429	7,389
Transportation and other services	4,218	3,208
Gas distribution sales	1,540	1,416
Total operating revenues (Note 3)	12,187	12,013
Operating expenses
Commodity costs	6,198	7,163
Gas distribution costs	950	855
Operating and administrative	1,559	1,600
Depreciation and amortization	932	882
Total operating expenses	9,639	10,500
Operating income	2,548	1,513
Income from equity investments	395	163
Impairment of equity investments (Note 8)	—	(1,736)
Other income/(expense)
Net foreign currency gain/(loss)	152	(956)
Other	59	(191)
Interest expense	(657)	(706)
Earnings/(loss) before income taxes	2,497	(1,913)
Income tax (expense)/recovery (Note 10)	(483)	549
Earnings/(loss)	2,014	(1,364)
(Earnings)/loss attributable to noncontrolling interests	(22)	31
Earnings/(loss) attributable to controlling interests	1,992	(1,333)
Preference share dividends	(92)	(96)
Earnings/(loss) attributable to common shareholders	1,900	(1,429)
Earnings/(loss) per common share attributable to common shareholders (Note 5)	0.94	(0.71)
Diluted earnings/(loss) per common share attributable to common shareholders (Note 5)	0.94	(0.71)

The accompanying notes are an integral part of these interim consolidated financial statements.

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ENBRIDGE INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Three months ended March 31,
	2021	2020
(unaudited; millions of Canadian dollars)
Earnings/(loss)	2,014	(1,364)
Other comprehensive income/(loss), net of tax
Change in unrealized gain/(loss) on cash flow hedges	370	(513)
Change in unrealized gain/(loss) on net investment hedges	93	(715)
Other comprehensive loss from equity investees	(22)	(10)
Excluded components of fair value hedges	(1)	3
Reclassification to earnings of loss on cash flow hedges	52	32
Reclassification to earnings of pension and other postretirement benefits (OPEB) amounts	5	3
Foreign currency translation adjustments	(796)	5,637
Other comprehensive (loss)/income, net of tax	(299)	4,437
Comprehensive income	1,715	3,073
Comprehensive loss/(income) attributable to noncontrolling interests	3	(145)
Comprehensive income attributable to controlling interests	1,718	2,928
Preference share dividends	(92)	(96)
Comprehensive income attributable to common shareholders	1,626	2,832

The accompanying notes are an integral part of these interim consolidated financial statements.

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ENBRIDGE INC.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

	Three months ended March 31,
	2021	2020
(unaudited; millions of Canadian dollars, except per share amounts)
Preference shares
Balance at beginning and end of period	7,747	7,747
Common shares
Balance at beginning of period	64,768	64,746
Shares issued on exercise of stock options	4	14
Balance at end of period	64,772	64,760
Additional paid-in capital
Balance at beginning of period	277	187
Stock-based compensation	11	14
Options exercised	(3)	(16)
Change in reciprocal interest	39	12
Other	—	5
Balance at end of period	324	202
Deficit
Balance at beginning of period	(9,995)	(6,314)
Earnings/(loss) attributable to controlling interests	1,992	(1,333)
Preference share dividends	(92)	(96)
Dividends paid to reciprocal shareholder	3	5
Modified retrospective adoption of ASU 2016-13 Financial Instruments - Credit Losses	—	(66)
Other	(1)	(4)
Balance at end of period	(8,093)	(7,808)
Accumulated other comprehensive (loss)/income (Note 7)
Balance at beginning of period	(1,401)	(272)
Other comprehensive (loss)/income attributable to common shareholders, net of tax	(274)	4,261
Balance at end of period	(1,675)	3,989
Reciprocal shareholding
Balance at beginning of period	(29)	(51)
Change in reciprocal interest	12	4
Balance at end of period	(17)	(47)
Total Enbridge Inc. shareholders’ equity	63,058	68,843
Noncontrolling interests
Balance at beginning of period	2,996	3,364
Earnings/(loss) attributable to noncontrolling interests	22	(31)
Other comprehensive (loss)/income attributable to noncontrolling interests, net of tax
Change in unrealized loss on cash flow hedges	(3)	(2)
Foreign currency translation adjustments	(22)	178
Contributions	3	15
Distributions	(66)	(76)
Balance at end of period	2,930	3,448
Total equity	65,988	72,291
Dividends paid per common share	0.835	0.810

The accompanying notes are an integral part of these interim consolidated financial statements.

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ENBRIDGE INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Three months ended March 31,
	2021	2020
(unaudited; millions of Canadian dollars)
Operating activities
Earnings/(loss)	2,014	(1,364)
Adjustments to reconcile earnings/(loss) to net cash provided by operating activities:
Depreciation and amortization	932	882
Deferred income tax expense/(recovery)	369	(713)
Changes in unrealized (gain)/loss on derivative instruments, net (Note 9)	(315)	1,556
Income from equity investments	(395)	(163)
Distributions from equity investments	388	428
Impairment of equity investments (Note 8)	—	1,736
Gain on disposition	(41)	—
Other	30	253
Changes in operating assets and liabilities	(418)	194
Net cash provided by operating activities	2,564	2,809
Investing activities
Capital expenditures	(2,059)	(1,147)
Long-term investments and restricted long-term investments	(61)	(87)
Distributions from equity investments in excess of cumulative earnings	61	77
Additions to intangible assets	(65)	(69)
Proceeds from disposition	122	—
Affiliate loans, net	44	(44)
Net cash used in investing activities	(1,958)	(1,270)
Financing activities
Net change in short-term borrowings	(27)	(63)
Net change in commercial paper and credit facility draws	1,727	1,159
Debenture and term note issues, net of issue costs	629	990
Debenture and term note repayments	(912)	(1,657)
Contributions from noncontrolling interests	3	15
Distributions to noncontrolling interests	(66)	(76)
Common shares issued	—	1
Preference share dividends	(92)	(96)
Common share dividends	(1,691)	(1,641)
Redemption of preferred shares held by subsidiary	(115)	—
Other	(21)	(18)
Net cash used in financing activities	(565)	(1,386)
Effect of translation of foreign denominated cash and cash equivalents and restricted cash	(7)	11
Net increase in cash and cash equivalents and restricted cash	34	164
Cash and cash equivalents and restricted cash at beginning of period	490	676
Cash and cash equivalents and restricted cash at end of period	524	840

The accompanying notes are an integral part of these interim consolidated financial statements.

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ENBRIDGE INC.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

	March 31, 2021	December 31, 2020
(unaudited; millions of Canadian dollars; number of shares in millions)
Assets
Current assets
Cash and cash equivalents	465	452
Restricted cash	59	38
Accounts receivable and other	6,227	5,258
Accounts receivable from affiliates	30	66
Inventory	853	1,536
	7,634	7,350
Property, plant and equipment, net	95,141	94,571
Long-term investments	13,627	13,818
Restricted long-term investments	529	553
Deferred amounts and other assets	8,542	8,446
Intangible assets, net	2,219	2,080
Goodwill	32,365	32,688
Deferred income taxes	638	770
Total assets	160,695	160,276
Liabilities and equity
Current liabilities
Short-term borrowings	1,094	1,121
Accounts payable and other	7,211	9,228
Accounts payable to affiliates	18	22
Interest payable	589	651
Current portion of long-term debt	4,014	2,957
	12,926	13,979
Long-term debt	62,688	62,819
Other long-term liabilities	8,360	8,783
Deferred income taxes	10,733	10,332
	94,707	95,913
Contingencies (Note 12)
Equity
Share capital
Preference shares	7,747	7,747
Common shares (2,026 outstanding at March 31, 2021 and December 31, 2020)	64,772	64,768
Additional paid-in capital	324	277
Deficit	(8,093)	(9,995)
Accumulated other comprehensive loss (Note 7)	(1,675)	(1,401)
Reciprocal shareholding	(17)	(29)
Total Enbridge Inc. shareholders’ equity	63,058	61,367
Noncontrolling interests	2,930	2,996
	65,988	64,363
Total liabilities and equity	160,695	160,276

The accompanying notes are an integral part of these 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 (US GAAP) and Regulation S-X for interim consolidated financial information. They do not include all of the information and notes required by US GAAP for annual consolidated financial statements and should therefore be read in conjunction with our audited consolidated financial statements and notes for the year ended December 31, 2020. 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 consolidated financial statements for the year ended December 31, 2020, 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 ACCOUNTING STANDARDS

Reference Rate Reform

For eligible hedging relationships existing as at January 1, 2021 and prospectively, we have applied the optional expedient in Accounting Standards Update (ASU) 2020-04 whereby the modification of the hedging instrument does not result in an automatic hedging relationship de-designation. The adoption of this ASU did not have a material impact on our consolidated financial statements.

Clarifying Interaction between Equity Securities, Equity Method Investments and Derivatives

Effective January 1, 2021, we adopted ASU 2020-01 on a prospective basis. The new standard was issued in January 2020 and clarifies that observable transactions should be considered for the purpose of applying the measurement alternative in accordance with Accounting Standards Codification (ASC) 321 Investments - Equity Securities immediately before the application or upon discontinuance of the equity method of accounting. Furthermore, the ASU clarifies that forward contracts or purchased options on equity securities are not out of scope of ASC 815 Derivatives and Hedging guidance only because, upon the contracts’ exercise, the equity securities could be accounted for under the equity method of accounting or fair value option. The adoption of this ASU did not have a material impact on our consolidated financial statements.

Accounting for Income Taxes

Effective January 1, 2021, we adopted ASU 2019-12 on a prospective basis. The new standard was issued in December 2019 with the intent of simplifying the accounting for income taxes. The accounting update removes certain exceptions to the general principles in ASC 740 Income Taxes as well as provides simplification by clarifying and amending existing guidance. The adoption of this ASU did not have a material impact on our consolidated financial statements.

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FUTURE ACCOUNTING POLICY CHANGES

Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity

ASU 2020-06 was issued in August 2020 to simplify accounting for certain financial instruments. The ASU eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The ASU also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. The ASU amends the diluted earnings per share guidance, including the requirement to use if-converted method for all convertible instruments and an update for instruments that can be settled in either cash or shares. ASU 2020-06 is effective January 1, 2022 and should be applied on a full or modified retrospective basis. We are currently assessing the impact of the new standard on our consolidated financial statements.

3. REVENUES

REVENUE FROM CONTRACTS WITH CUSTOMERS

Major Products and Services

	Liquids Pipelines	Gas Transmission and Midstream	Gas Distribution and Storage	Renewable Power Generation	Energy Services	Eliminations and Other	Consolidated
Three months ended March 31, 2021
(millions of Canadian dollars)
Transportation revenues	2,329	1,121	216	—	—	—	3,666
Storage and other revenues	26	74	58	—	—	—	158
Gas gathering and processing revenues	—	7	—	—	—	—	7
Gas distribution revenue	—	—	1,534	—	—	—	1,534
Electricity and transmission revenues	—	—	—	76	—	—	76
Total revenue from contracts with customers	2,355	1,202	1,808	76	—	—	5,441
Commodity sales	—	—	—	—	6,429	—	6,429
Other revenues1,2	212	12	6	91	—	(4)	317
Intersegment revenues	132	—	9	—	4	(145)	—
Total revenues	2,699	1,214	1,823	167	6,433	(149)	12,187

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	Liquids Pipelines	Gas Transmission and Midstream	Gas Distribution and Storage	Renewable Power Generation	Energy Services	Eliminations and Other	Consolidated
Three months ended March 31, 2020
(millions of Canadian dollars)
Transportation revenues	2,440	1,255	215	—	—	—	3,910
Storage and other revenues	26	79	47	—	—	—	152
Gas gathering and processing revenues	—	7	—	—	—	—	7
Gas distribution revenues	—	—	1,417	—	—	—	1,417
Electricity and transmission revenues	—	—	—	50	—	—	50
Total revenue from contracts with customers	2,466	1,341	1,679	50	—	—	5,536
Commodity sales	—	—	—	—	7,389	—	7,389
Other revenues1,2	(1,017)	16	(1)	103	(7)	(6)	(912)
Intersegment revenues	85	—	4	—	16	(105)	—
Total revenues	1,534	1,357	1,682	153	7,398	(111)	12,013

1 Includes mark-to-market gains/(losses) from our hedging program for the three months ended March 31, 2021 and 2020 of $130 million gain and $1,106 million loss, respectively.

2 Includes revenues from lease contracts for the three months ended March 31, 2021 and 2020 of $159 million and $158 million, respectively.

We disaggregate revenues into categories which represent our principal performance obligations within each business segment. These revenue categories represent the most significant revenue streams in each segment and consequently are considered to be the most relevant revenue information for management to consider in evaluating performance.

Contract Balances

	Contract Receivables	Contract Assets	Contract Liabilities
(millions of Canadian dollars)
Balance as at March 31, 2021	2,120	214	1,724
Balance as at December 31, 2020	2,042	226	1,815

Contract receivables represent the amount of receivables derived from contracts with customers.

Contract assets represent the amount of revenues which has been recognized in advance of payments received for performance obligations we have fulfilled (or partially fulfilled) and prior to the point in time at which our right to payment is unconditional. Amounts included in contract assets are transferred to accounts receivable when our right to receive the consideration becomes unconditional.

Contract liabilities represent payments received for performance obligations which have not been fulfilled. Contract liabilities primarily relate to make-up rights and deferred revenues. Revenue recognized during the three months ended March 31, 2021 included in contract liabilities at the beginning of the period was $145 million. Increases in contract liabilities from cash received, net of amounts recognized as revenues during the three months ended March 31, 2021 were $69 million.

Performance Obligations

There were no material revenues recognized in the three months ended March 31, 2021 from performance obligations satisfied in previous periods.

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Revenues to be Recognized from Unfulfilled Performance Obligations

Total revenues from performance obligations expected to be fulfilled in future periods is $57.4 billion, of which $5.0 billion and $5.7 billion is expected to be recognized during the nine months ending December 31, 2021 and the year ending December 31, 2022, respectively.

The revenues excluded from the amounts above based on optional exemptions available under ASC 606, as explained below, represent a significant portion of our overall revenues and revenue from contracts with customers. Certain revenues such as flow-through operating costs charged to shippers are recognized at the amount for which we have the right to invoice our customers and are excluded from the amounts for revenues to be recognized in the future from unfulfilled performance obligations above. Variable consideration is excluded from the amounts above due to the uncertainty of the associated consideration, which is generally resolved when actual volumes and prices are determined. For example, we consider interruptible transportation service revenues to be variable revenues since volumes cannot be estimated. Additionally, the effect of escalation on certain tolls which are contractually escalated for inflation has not been reflected in the amounts above as it is not possible to reliably estimate future inflation rates. Revenues for periods extending beyond the current rate settlement term for regulated contracts where the tolls are periodically reset by the regulator are excluded from the amounts above since future tolls remain unknown. Finally, revenue from contracts with customers which have an original expected duration of one year or less are excluded from the amounts above.

Recognition and Measurement of Revenues

	Liquids Pipelines	Gas Transmission and Midstream	Gas Distribution and Storage	Renewable Power Generation	Consolidated
Three months ended March 31, 2021
(millions of Canadian dollars)
Revenues from products transferred at a point in time	—	—	17	—	17
Revenues from products and services transferred over time1	2,355	1,202	1,791	76	5,424
Total revenue from contracts with customers	2,355	1,202	1,808	76	5,441

	Liquids Pipelines	Gas Transmission and Midstream	Gas Distribution and Storage	Renewable Power Generation	Consolidated
Three months ended March 31, 2020
(millions of Canadian dollars)
Revenues from products transferred at a point in time	—	—	15	—	15
Revenues from products and services transferred over time1	2,466	1,341	1,664	50	5,521
Total revenue from contracts with customers	2,466	1,341	1,679	50	5,536

1     Includes revenues from crude oil and natural gas pipeline transportation, storage, natural gas gathering, compression and treating, natural gas distribution, natural gas storage services and electricity sales.

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4. SEGMENTED INFORMATION

	Liquids Pipelines	Gas Transmission and Midstream	Gas Distribution and Storage	Renewable Power Generation	Energy Services	Eliminations and Other	Consolidated
Three months ended March 31, 2021