REGULATORY MATTERS (Tables)

12 Months Ended

Dec. 31, 2023

Regulated Operations [Abstract]

Schedule of Regulatory Assets

Accounting for rate-regulated activities has resulted in the recognition of the following regulatory assets and liabilities in the Consolidated Statements of Financial Position.

December 31,	2023	2022	Recovery/Refund Period Ends
(millions of Canadian dollars)
Current regulatory assets
Purchase gas variance	15	190	2024
Under-recovery of fuel costs	75	109	2024
Other current regulatory assets	380	305	2024
Total current regulatory assets1 (Note 9)	470	604
Long-term regulatory assets
Deferred income taxes2	4,456	4,473	Various
Long-term debt3	348	378	2032-2046
Negative salvage4	180	265	Various
Purchase gas variance	—	244	2024
Accounting policy changes5	—	219	2024
Pension plan receivable6	1	40	Various
Other long-term regulatory assets	252	244	Various
Total long-term regulatory assets1	5,237	5,863
Total regulatory assets	5,707	6,467
Current regulatory liabilities
Purchase gas variance	31	—	2024
Other current regulatory liabilities	276	167	2024
Total current regulatory liabilities7	307	167
Long-term regulatory liabilities
Future removal and site restoration reserves8	1,693	1,615	Various
Regulatory liability related to US income taxes9	854	918	2050-2072
Pipeline future abandonment costs (Note 23)	745	610	Various
Pension plan payable6	143	231	Various
Other long-term regulatory liabilities	86	250	Various
Total long-term regulatory liabilities7	3,521	3,624
Total regulatory liabilities	3,828	3,791

1Current regulatory assets are included in Other current assets, 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. The balance as at December 31, 2023 is net of regulatory deferred tax write-offs.

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.

5In 2022, this deferral primarily consisted 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. The Phase 1 Decision disallowed recovery of the remaining balance related to pre-2017 pension amounts and was impaired with a nil balance as at December 31, 2023. The residual balance in this account pertains to the impact of other accounting changes during the deferred rebasing period and were approved for disposition in 2024 in the Phase 1 Decision and subsequently transferred to Other current regulatory assets as at December 31, 2023.

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 Other current liabilities, 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

Accounting for rate-regulated activities has resulted in the recognition of the following regulatory assets and liabilities in the Consolidated Statements of Financial Position.

December 31,	2023	2022	Recovery/Refund Period Ends
(millions of Canadian dollars)
Current regulatory assets
Purchase gas variance	15	190	2024
Under-recovery of fuel costs	75	109	2024
Other current regulatory assets	380	305	2024
Total current regulatory assets1 (Note 9)	470	604
Long-term regulatory assets
Deferred income taxes2	4,456	4,473	Various
Long-term debt3	348	378	2032-2046
Negative salvage4	180	265	Various
Purchase gas variance	—	244	2024
Accounting policy changes5	—	219	2024
Pension plan receivable6	1	40	Various
Other long-term regulatory assets	252	244	Various
Total long-term regulatory assets1	5,237	5,863
Total regulatory assets	5,707	6,467
Current regulatory liabilities
Purchase gas variance	31	—	2024
Other current regulatory liabilities	276	167	2024
Total current regulatory liabilities7	307	167
Long-term regulatory liabilities
Future removal and site restoration reserves8	1,693	1,615	Various
Regulatory liability related to US income taxes9	854	918	2050-2072
Pipeline future abandonment costs (Note 23)	745	610	Various
Pension plan payable6	143	231	Various
Other long-term regulatory liabilities	86	250	Various
Total long-term regulatory liabilities7	3,521	3,624
Total regulatory liabilities	3,828	3,791

1Current regulatory assets are included in Other current assets, 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. The balance as at December 31, 2023 is net of regulatory deferred tax write-offs.

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.

5In 2022, this deferral primarily consisted 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. The Phase 1 Decision disallowed recovery of the remaining balance related to pre-2017 pension amounts and was impaired with a nil balance as at December 31, 2023. The residual balance in this account pertains to the impact of other accounting changes during the deferred rebasing period and were approved for disposition in 2024 in the Phase 1 Decision and subsequently transferred to Other current regulatory assets as at December 31, 2023.

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 Other current liabilities, 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.