REGULATORY MATTERS (Tables)

12 Months Ended

Dec. 31, 2022

Regulated Operations [Abstract]

Schedule of Regulatory Assets

December 31,	2022	2021	Recovery/Refund Period Ends
(millions of Canadian dollars)
Current regulatory assets
Purchase gas variance	190	15	2023
Under-recovery of fuel costs	109	114	2023
Other current regulatory assets	305	130	2023
Total current regulatory assets1 (Note 9)	604	259
Long-term regulatory assets
Deferred income taxes2	4,473	4,176	Various
Long-term debt3	378	398	2032-2046
Negative salvage4	265	243	Various
Purchase gas variance	244	215	2024
Accounting policy changes5	219	157	Various
Pension plan receivable6	40	78	Various
Other long-term regulatory assets	244	339	Various
Total long-term regulatory assets1	5,863	5,606
Total regulatory assets	6,467	5,865
Current regulatory liabilities
Other current regulatory liabilities	167	106	2023
Total current regulatory liabilities7	167	106
Long-term regulatory liabilities
Future removal and site restoration reserves8	1,615	1,543	Various
Regulatory liability related to US income taxes9	918	895	2050-2072
Pipeline future abandonment costs (Note 14)	610	649	Various
Pension plan payable6	231	—	Various
Other long-term regulatory liabilities	250	234	Various
Total long-term regulatory liabilities7	3,624	3,321
Total regulatory liabilities	3,791	3,427

1Current regulatory assets are included in Accounts receivable and other, while long-term regulatory assets are included in Deferred amounts and other assets.

2Represents 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.

3Represents 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.

4The 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.

5This deferral primarily consists of 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.

6Represents 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.

7Current regulatory liabilities are included in Accounts payable and other, while long-term regulatory liabilities are included in Other long-term liabilities.

8Future 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.

9The 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,	2022	2021	Recovery/Refund Period Ends
(millions of Canadian dollars)
Current regulatory assets
Purchase gas variance	190	15	2023
Under-recovery of fuel costs	109	114	2023
Other current regulatory assets	305	130	2023
Total current regulatory assets1 (Note 9)	604	259
Long-term regulatory assets
Deferred income taxes2	4,473	4,176	Various
Long-term debt3	378	398	2032-2046
Negative salvage4	265	243	Various
Purchase gas variance	244	215	2024
Accounting policy changes5	219	157	Various
Pension plan receivable6	40	78	Various
Other long-term regulatory assets	244	339	Various
Total long-term regulatory assets1	5,863	5,606
Total regulatory assets	6,467	5,865
Current regulatory liabilities
Other current regulatory liabilities	167	106	2023
Total current regulatory liabilities7	167	106
Long-term regulatory liabilities
Future removal and site restoration reserves8	1,615	1,543	Various
Regulatory liability related to US income taxes9	918	895	2050-2072
Pipeline future abandonment costs (Note 14)	610	649	Various
Pension plan payable6	231	—	Various
Other long-term regulatory liabilities	250	234	Various
Total long-term regulatory liabilities7	3,624	3,321
Total regulatory liabilities	3,791	3,427

1Current regulatory assets are included in Accounts receivable and other, while long-term regulatory assets are included in Deferred amounts and other assets.

2Represents 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.

3Represents 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.

4The 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.

5This deferral primarily consists of 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.

6Represents 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.

7Current regulatory liabilities are included in Accounts payable and other, while long-term regulatory liabilities are included in Other long-term liabilities.

8Future 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.

9The 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.