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REGULATORY MATTERS (Tables)
 12 Months Ended
Dec. 31, 2021
Regulated Operations [Abstract]  
Schedule of Regulatory Assets
December 31,20212020Recovery/Refund
Period Ends
(millions of Canadian dollars)
Current regulatory assets
   Under-recovery of fuel costs114 86 2022
   Other current regulatory assets145 146 2022
Total current regulatory assets1 (Note 9)
259 232 
Long-term regulatory assets
   Deferred income taxes2
4,176 3,890 Various
   Long-term debt3
398 429 2023-2046
Negative salvage4
243 246 Various
   Purchase gas variance215 — 2023
   Accounting policy changes5
157 169 Various
   Pension plan receivable6
78 402 Various
   Other long-term regulatory assets339 261 Various
Total long-term regulatory assets1
5,606 5,397 
Total regulatory assets5,865 5,629 
Current regulatory liabilities
   Purchase gas variance— 153 2021
   Other current regulatory liabilities106 117 2022
Total current regulatory liabilities7
106 270 
Long-term regulatory liabilities
   Future removal and site restoration reserves8
1,543 1,455 Various
   Regulatory liability related to US income taxes9
895 941 2050-2072
   Pipeline future abandonment costs (Note 14)
649 578 Various
   Other long-term regulatory liabilities234 150 Various
Total long-term regulatory liabilities7
3,321 3,124 
Total regulatory liabilities3,427 3,394 

1 Current regulatory assets are included in Accounts receivable and other, while long-term regulatory assets are included in Deferred amounts and other assets.
2 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 temporary differences. In the absence of rate-regulated accounting, this regulatory balance and the related earnings impact would not be recorded.
3 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.
4 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.
5 This 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.
6 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.
7 Current regulatory liabilities are included in Accounts payable and other, while long-term regulatory liabilities are included in Other long-term liabilities.
8 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.
9 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 31,20212020Recovery/Refund
Period Ends
(millions of Canadian dollars)
Current regulatory assets
   Under-recovery of fuel costs114 86 2022
   Other current regulatory assets145 146 2022
Total current regulatory assets1 (Note 9)
259 232 
Long-term regulatory assets
   Deferred income taxes2
4,176 3,890 Various
   Long-term debt3
398 429 2023-2046
Negative salvage4
243 246 Various
   Purchase gas variance215 — 2023
   Accounting policy changes5
157 169 Various
   Pension plan receivable6
78 402 Various
   Other long-term regulatory assets339 261 Various
Total long-term regulatory assets1
5,606 5,397 
Total regulatory assets5,865 5,629 
Current regulatory liabilities
   Purchase gas variance— 153 2021
   Other current regulatory liabilities106 117 2022
Total current regulatory liabilities7
106 270 
Long-term regulatory liabilities
   Future removal and site restoration reserves8
1,543 1,455 Various
   Regulatory liability related to US income taxes9
895 941 2050-2072
   Pipeline future abandonment costs (Note 14)
649 578 Various
   Other long-term regulatory liabilities234 150 Various
Total long-term regulatory liabilities7
3,321 3,124 
Total regulatory liabilities3,427 3,394 

1 Current regulatory assets are included in Accounts receivable and other, while long-term regulatory assets are included in Deferred amounts and other assets.
2 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 temporary differences. In the absence of rate-regulated accounting, this regulatory balance and the related earnings impact would not be recorded.
3 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.
4 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.
5 This 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.
6 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.
7 Current regulatory liabilities are included in Accounts payable and other, while long-term regulatory liabilities are included in Other long-term liabilities.
8 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.
9 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.