We record assets and liabilities that result from regulated ratemaking processes that would not be recorded under US GAAP for non-regulated entities. See Note 2 - Significant Accounting Policies for further discussion. Our significant regulated businesses and the related accounting impacts are described below.

Under the current authorized rate structure for certain operations, income tax costs are recovered in rates based on the current income tax payable and do not include accruals for deferred income tax. However, as income taxes become payable as a result of the reversal of temporary differences that created the deferred income taxes, it is expected that rates will be adjusted to recover these taxes. Since most of these temporary differences are related to property, plant and equipment costs, this recovery is expected to occur over the life of the related assets. In the absence of rate-regulated accounting, this regulatory tax asset and the related earnings impact would not be recorded.

Canadian Mainline includes the Canadian portion of our Mainline system. The Mainline Tolling Settlement (MTS), governs the tolls paid for products shipped on its Mainline System, with the exception of Lines 8 and 9 which are tolled on a separate basis and was approved by the CER on March 4, 2024. The MTS has a seven-and-a-half year term through the end of 2028 and continues with the previous CTS framework with a Canadian Local Toll for all volumes shipped on the Canadian Mainline and an International Joint Tariff for all volumes shipped from western Canadian receipt points to delivery points on our Lakehead System. We have recognized a regulatory asset of $2.0 billion as at December 31, 2024 (2023 - $1.9 billion) to offset deferred income taxes, as a CER rate order governing flow-through income tax treatment permits future recovery. No other material regulatory assets or liabilities are recognized under the terms of the MTS.

In February 2024, we entered into fixed-toll agreements for a five-year term. As at December 31, 2023, since we did not expect to renew the agreements under a cost-of-service toll methodology, Southern Lights Pipeline was no longer subject to rate-regulated accounting. As a result, $151 million of net regulatory liabilities, $92 million of regulatory tax assets and $23 million of regulatory deferred tax liabilities were derecognized in 2023.

British Columbia (BC) Pipeline and Maritimes & Northeast Canada (M&N Canada) are regulated by the CER. Rates are approved by the CER through negotiated toll settlement agreements based on cost-of-service. Both our BC Pipeline and M&N Canada systems currently operate under the terms of their respective 2022-2026 and 2024-2025 settlement agreements, which stipulate an allowable return on equity (ROE) and the continuation and establishment of certain deferral and variance accounts. M&N Canada reached a toll settlement with shippers for the effective period from January 1, 2024 to December 31, 2025. On November 28, 2023, M&N Canada filed the 2024-2025 toll settlement agreement with the CER, which was approved on February 14, 2024, as filed.

The majority of our US gas transmission and storage services are regulated by the FERC and may also be subject to the jurisdiction of various other federal, state and local agencies. The FERC regulates natural gas transmission in US interstate commerce including the establishment of rates for services, while rates for intrastate commerce and/or gathering services are regulated by the state gas commissions. Cost-of-service is the basis for the calculation of regulated tariff rates, although the FERC also allows the use of negotiated and discounted rates within contracts with shippers that may result in a rate that is above or below the FERC-regulated recourse rate for that service.

Enbridge Gas Ontario's distribution rates, commencing in 2024, were set by the OEB under a five-year Incentive Regulation (IR) framework. The framework included the establishment of 2024 base rates on a cost-of-service basis, while rates for 2025 through 2028 will be established using a price cap mechanism. The price cap mechanism will establish new rates each year through an annual base rate adjustment to expense an incremental $50 million of capitalized overheads as operating and maintenance costs; annual base rate escalation at inflation less a 0.28% productivity factor; annual updates for certain costs to be passed through to customers; and, where applicable, it will provide for the recovery of material unexpected events and discrete incremental capital investments beyond those that can be funded through base rates. The price cap mechanism includes the continuation and establishment of certain deferral and variance accounts, as well as an earnings sharing mechanism that requires Enbridge Gas Ontario to share equally with customers any earnings in excess of 100 basis points over the allowed ROE, and share 90% of earnings in excess of 300 basis points over the allowed ROE.

Enbridge Gas Ohio is subject to the jurisdiction of the Ohio Commission with its natural gas sales and transportation and storage services being provided under rate schedules approved by the regulatory commission. Enbridge Gas Ohio uses a straight-fixed-variable rate design, where majority of operating costs are recovered through a monthly charge, as established in a 2008 rate case settlement.

In October 2023, Enbridge Gas Ohio filed for a non-fuel base rate increase of $212 million projected to be effective January 2025. This base rate increase aims to recover investments in distribution infrastructure for the benefit of Ohio customers. The proposed rates would provide an ROE of 10.40% compared to the currently authorized 10.38%. Additionally, Enbridge Gas Ohio also requested approval for an alternative rate plan for the continuation and modification of the Pipeline Infrastructure Replacement (PIR) and the Capital Expenditure Program (CEP). On December 18, 2024, Enbridge Gas Ohio filed a Notice of Intent to Modify Filed Positions. The Notice of Intent indicated a willingness to accept a reduced annual revenue requirement increase (from $212 million to $60 million) and, if the reduced position were adopted, to forgo filing a new base rate case until October 31, 2027. The hearing began on January 13, 2025, and remains underway.

Enbridge Gas Utah, Enbridge Gas Wyoming and Enbridge Gas Idaho are regulated by the Utah Commission, the Wyoming Commission, and the Idaho Commission. For rate oversight of Enbridge Gas Idaho's operations in a small area of southeastern Idaho, the Idaho Commission has contracted with Utah Commission. Both Utah and Wyoming Commissions allow for the recovery of gas costs through a balancing-account mechanism.

Enbridge Gas Utah, Enbridge Gas Wyoming and Enbridge Gas Idaho use several mechanisms to manage costs and promote efficiency. They recover gas costs through a balance-account mechanism that adjusts rates periodically to reflect changes in natural gas prices. The Infrastructure Replacement Program allows Enbridge Gas Utah, Enbridge Gas Wyoming, and Enbridge Gas Idaho to earn a return on capital expenditures for infrastructure replacement. The CET decouples non-gas revenues from customer usage, enabling the collection of allowed revenue per customer and encourages energy conservation. The Energy Efficiency Program promotes natural gas conservation through advertising, rebates, and home energy plans. These costs are recovered through periodic rate adjustments. The Utah Commission approved the construction of natural gas infrastructure to extend services to rural Utah, including 30 miles of intermediate high-pressure pipeline and up to 500 service lines. Recent approvals also include adjustments in the rural expansion rate tracker.

Enbridge Gas North Carolina is subject to regulation of rates and other aspects of its business by the North Carolina Commission. Base rates for Enbridge Gas North Carolina are designed primarily based on rate design methodology in which the majority of operating costs are recovered through volumetric charges. The North Carolina Commission authorized Enbridge Gas North Carolina to use a tracker mechanism to recover costs related to pipeline integrity and safety requirements that are not included in current base rates.

Enbridge Gas North Carolina uses several mechanisms to adjust rates and recover costs. CUT allows for rate adjustments based on changes in customer usage patterns. Rider D enables the recovery of gas purchases from customers, with rates periodically adjusted to reflect market price changes. Rider F facilitates the recovery of costs associated with energy efficiency measures and programs.

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,	2024	2023	Recovery/Refund Period Ends
(millions of Canadian dollars)
Current regulatory assets
Purchase gas variance	74	15	2025
Under-recovery of fuel costs	4	75	2025
Deferred projects costs1	90	—	2025




Other current regulatory assets	304	380	2025
Total current regulatory assets2 (Note 9)	472	470
Long-term regulatory assets
Deferred income taxes3	4,698	4,456	Various
Deferred projects costs1	1,045	—	Various
Long-term debt4	318	348	2032-2046
Negative salvage5	136	180	Various


Demand-side management costs	237	54	Various
Pension plan receivable6	266	1	Various
Other long-term regulatory assets	447	198	Various
Total long-term regulatory assets2	7,147	5,237
Total regulatory assets	7,619	5,707
Current regulatory liabilities

Purchase gas variance	292	31	2025



Regulatory liability related to US income taxes7	44	—	2025
Other current regulatory liabilities	280	276	2025
Total current regulatory liabilities8 (Note 16)	616	307
Long-term regulatory liabilities
Future removal and site restoration reserves9	2,964	1,693	Various
Regulatory liability related to US income taxes7	2,021	854	Various
Pipeline future abandonment costs (Note 23)	826	745	Various
Pension plan payable6	59	143	Various
Other long-term regulatory liabilities	242	86	Various
Total long-term regulatory liabilities8	6,112	3,521
Total regulatory liabilities	6,728	3,828

1Represents the amounts anticipated to be collected from customers in East Ohio’s service areas for rider projects, including CEP, PIR and costs related to the Pipeline Safety Management Program. The recovery periods for these expenditures vary according to the stipulations outlined in the respective riders. For Enbridge Gas North Carolina, these amounts relate to pipeline integrity management which represent operating costs incurred to comply with federal regulatory requirements related to natural gas pipelines and have been deferred pending future approval of rate recovery.

3Represents 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, 2024 is net of regulatory deferred tax write-offs.

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.

7The 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 for our US Gas Transmission pipelines and by the respective state utility commission for each US Gas Distribution franchise.

9Future removal and site restoration reserves consists of amounts collected from customers, with the approval of the respective regulatory authorities, 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.