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RATE-REGULATED BUSINESSES (Tables)
12 Months Ended
Dec. 31, 2016
Regulated Operations [Abstract]  
Schedule of Regulatory Assets and Liabilities
at December 31
2016

 
2015

 
Remaining
Recovery/
Settlement
Period (years)

(millions of Canadian $)
 
 
 
 
 
 
Regulatory Assets
 
 
 
 
 
Deferred income taxes1
861

 
894

 
n/a

Operating and debt-service regulatory assets2
1

 
47

 
1

Pensions and other post retirement benefits3
382

 
210

 
n/a

Foreign exchange on long-term debt1,4
37

 
54

 
1-13

Other
74

 
64

 
n/a

 
1,355

 
1,269

 
 

Less: Current portion included in Other current assets (Note 7)
33

 
85

 
 
 
1,322

 
1,184

 
 

 
 
 
 
 
 
Regulatory Liabilities
 

 
 
 
 
Operating and debt-service regulatory liabilities2
47

 
32

 
1

Pensions and other post retirement benefits3
180

 

 
n/a

ANR related post-employment and retirement benefits other than pension5
141

 
147

 
n/a

Long term adjustment account6
659

 
231

 
45

Pipeline abandonment costs
541

 
285

 
n/a

Bridging amortization account6
451

 
456

 
14

Cost of removal7
226

 
36

 
n/a

Other
54

 
16

 
n/a

 
2,299

 
1,203

 
 

Less: Current portion included in Accounts payable and other (Note 14)
178

 
44

 
 

 
2,121

 
1,159

 
 


1
These regulatory assets are underpinned by non-cash transactions or are recovered without an allowance for return as approved by the regulator. Accordingly, these regulatory assets are not included in rate base and do not yield a return on investment during the recovery period.
2
Operating and debt-service regulatory assets and liabilities represent the accumulation of cost and revenue variances approved by the regulatory authority for inclusion in determining tolls for the following calendar year.
3
These balances represent the regulatory offset to pension plan and other post-retirement obligations to the extent the amounts are expected to be collected from customers in future rates. The balances are excluded from the rate base and do not earn a return on investment.
4
Foreign exchange on long-term debt of the NGTL System represents the variance resulting from revaluing foreign currency-denominated debt instruments to the current foreign exchange rate from the historical foreign exchange rate at the time of issue. Foreign exchange gains and losses realized when foreign debt matures or is redeemed early are expected to be recovered or refunded through the determination of future tolls.
5
This balance represents what ANR estimated that it would be required to refund to its customers for post-retirement and post-employment benefit amounts collected through its FERC-approved rates that have not been used to pay benefits to its employees since a 1997 rate settlement. Pursuant to a FERC-approved September 2016 rate settlement, $106 million of the regulatory liability balance that accumulated between January 2007 and July 2016 will be resolved through a refund of $53 million to its customers and ANR amortizing $53 million over a three year period that began August 1, 2016. A remaining $41 million balance accumulated prior to 2007 is subject to resolution through future regulatory proceedings, and accordingly a settlement period cannot be determined at this time.
6
These regulatory accounts are used to capture Canadian Mainline revenue and cost variances and stabilize tolls during the 2015-2030 settlement term.
7
This balance represents anticipated costs of removal that have been, and continue to be, included in depreciation rates and collected in the service rates of certain rate-regulated subsidiaries for future costs to be incurred.