VARIABLE INTEREST ENTITIES

12 Months Ended

Dec. 31, 2023

Equity Method Investments and Joint Ventures [Abstract]

CONSOLIDATED VARIABLE INTEREST ENTITIES

Our consolidated VIEs consist of legal entities where we are the primary beneficiary. We are the primary beneficiary when our variable interest(s) provide us with (i) the power to direct the activities of the VIE that most significantly impact the VIE's economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. We determine whether we are the primary beneficiary of a VIE by considering qualitative and quantitative factors, including, but not limited to: decision-making responsibilities, the VIE capital structure, risk and rewards sharing, contractual agreements with the VIE, voting rights and level of involvement of other parties.

The following table includes assets to be used to settle liabilities of our consolidated VIEs. The creditors of the liabilities of our consolidated VIEs do not have recourse to our general credit as the primary beneficiary. These assets and liabilities are included in the Consolidated Statements of Financial Position.


December 31,	2023	2022
(millions of Canadian dollars)
Assets
Cash and cash equivalents	442	426
Restricted cash	9	12
Trade receivables and unbilled revenue	144	185
Other current assets	8	14
Accounts receivable from affiliates	5	23
Inventory	11	12
	619	672
Property, plant and equipment, net	7,105	7,707
Long-term investments	14	14
Restricted long-term investments	106	98
Deferred amounts and other assets	148	158
Intangible assets, net	84	102


	8,076	8,751
Liabilities

Trade payables and accrued liabilities	83	99
Other current liabilities	145	152
Accounts payable to affiliates	4	21



	232	272
Long-term debt	1	—
Other long-term liabilities	971	859
Deferred income taxes	5	5
	1,209	1,136
	6,867	7,615

We do not have obligations to provide additional financial support to any of our consolidated VIEs.

UNCONSOLIDATED VARIABLE INTEREST ENTITIES

We currently hold interests in several non-consolidated VIEs where we are not the primary beneficiary as we do not have the power to direct the activities of the VIEs that most significantly impact their economic performance. These interests include investments in limited partnerships that are assessed to be VIEs due to the limited partners not having substantive kick-out rights or participating rights. The power to direct the activities of a majority of these non-consolidated limited partnership VIEs is shared amongst the partners. Each partner has representatives that make up an executive committee that makes significant decisions for the VIE, and none of the partners may make significant decisions unilaterally.

The carrying amount of these VIEs and our estimated maximum exposure to loss as at December 31, 2023 and 2022 are presented below:


	Carrying Amount of	Maximum Exposure to
December 31, 2023	the VIE	Loss
(millions of Canadian dollars)
Aux Sable Liquid Products L.P.1	105	130
Rampion Offshore Wind Limited2	391	452
Vector Pipeline L.P.3	191	320
Woodfibre LNG Limited Partnership4	778	2,854
Fox Squirrel Solar LLC5	312	661
Other4	132	230
	1,909	4,647


	Carrying Amount of	Maximum Exposure to
December 31, 2022	the VIE	Loss
(millions of Canadian dollars)
Aux Sable Liquid Products L.P.1	91	117
EIH S.á r.l.6	37	637

Rampion Offshore Wind Limited2	413	468
Vector Pipeline L.P.3	195	325
Woodfibre LNG Limited Partnership4	635	2,476
Other4	245	443
	1,616	4,466

1As at December 31, 2023 and 2022, the maximum exposure to loss includes a guarantee by us for our respective share of the VIE's borrowing on a bank credit facility.

2As at December 31, 2023 and 2022, the maximum exposure to loss includes our parental guarantees that have been committed in project contracts in which we would be liable for in the event of default by the VIE.

3As at December 31, 2023 and 2022, the maximum exposure to loss includes the carrying value of outstanding affiliate loans receivable for $24 million and $25 million held by us as at December 31, 2023 and 2022, respectively, and an outstanding credit facility for $105 million as at December 31, 2023 and 2022.

4As at December 31, 2023 and 2022, the maximum exposure to loss includes our parental guarantees that have been committed in connection with the project for which we would be liable in the event of default by the VIE.

5In November 2023, Enbridge acquired a 50% interest in Fox Squirrel JV, LLC (Fox Squirrel Solar LLC). Refer to Note 13 - Long-Term Investments. Fox Squirrel Solar LLC is a VIE due to its lack of sufficient equity at risk to finance its activities. Enbridge does not hold decision-making rights to direct Fox Squirrel Solar LLC's activities that most significantly impacts its economic performance. As at December 31, 2023, the maximum exposure to loss includes our parental guarantees that have been committed in project contracts in which we would be liable for in the event of default by the VIE.

6As at December 31, 2023, EIH S.á r.l no longer met the requirements of a VIE as a result of a VIE reconsideration event. As at December 31, 2022, the maximum exposure to loss includes our parental guarantees that have been committed in connection with the three French offshore wind projects for which we would be liable in the event of default by the VIE and an outstanding affiliate loan receivable for $56 million.

We do not have an obligation to and did not provide any additional financial support to the VIEs during the years ended December 31, 2023 and 2022.