INCOME TAXES

6 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The effective income tax rates for the three months ended June 30, 2024 and 2023 were 27.0% and 20.6%, respectively, and for the six months ended June 30, 2024 and 2023 were 24.0% and 21.0%, respectively.

The period-over-period increases in the effective income tax rates are due to higher US minimum tax, the tax effect of the write-down of non-deductible goodwill in the Gas Transmission segment (Note 6), and the effects of rate-regulated accounting for income taxes, partially offset by a state apportionment income tax rate change due to the Questar Acquisition and EOG Acquisition (Note 6), and the non-taxable portion of the gain on disposition of the interests in Alliance Pipeline, Aux Sable and NRGreen equity investments (Note 6) relative to the change in earnings over the comparative periods.

On June 20, 2024, Bill C-69, Budget Implementation Act, 2024 No.1 received Royal Assent and the Excessive Interest and Financing Expenses Limitation (EIFEL) rules, along with the Global Minimum Tax (GMT) Act, were enacted. While the effects of the EIFEL rules and GMT Act have been factored into tax expense for the three and six months ended June 30, 2024, we do not expect either to have a material impact on our consolidated tax expense.