INCOME TAXES

6 Months Ended

Jun. 30, 2025

Income Tax Disclosure [Abstract]

INCOME TAXES

11. INCOME TAXES

The effective income tax rates for the three months ended June 30, 2025 and 2024 were 22.3% and 27.0%, respectively, and for the six months ended June 30, 2025 and 2024 were 22.1% and 24.0%, respectively.

The period-over-period decreases in the effective income tax rates were primarily due to higher US investment tax credits, lower US minimum tax, the prior year write-down of non-deductible goodwill on the Gas Transmission segment, partially offset by the prior year tax benefits relating to the state apportionment income tax rate change due to the Acquisitions (Note 6) and the non-taxable portion of the gain on the disposition of Alliance Pipeline and Aux Sable (Note 6) relative to the increase in earnings over the comparative periods.

On July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act, which includes a broad range of tax reform provisions. As the legislation was enacted after the reporting period, the financial results for the period ended June 30, 2025, do not reflect the impact of this new law. We do not expect the changes from the One Big Beautiful Bill Act to have a material impact on our consolidated financial results.