VARIABLE INTEREST ENTITIES (Tables)

12 Months Ended

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The consolidated VIEs whose assets cannot be used for purposes other than for the settlement of the VIE’s obligations, or are not considered a business, were as follows:


at December 31
(millions of Canadian $)	2022	2021

ASSETS
Current Assets
Cash and cash equivalents	60	72
Accounts receivable	98	70
Inventories	32	28
Other current assets	14	13
	204	183
Plant, Property and Equipment	3,997	3,672
Equity Investments	748	890
Goodwill	449	421

	5,398	5,166
LIABILITIES
Current Liabilities
Accounts payable and other	234	232

Accrued interest	18	17
Current portion of long-term debt	31	29
	283	278
Regulatory Liabilities	78	66
Other Long-Term Liabilities	1	1
Deferred Income Tax Liabilities	16	13
Long-Term Debt	2,136	2,025
	2,514	2,383

The carrying value of these VIEs and the maximum exposure to loss as a result of the Company's involvement with these VIEs were as follows:


at December 31
(millions of Canadian $)	2022	2021

Balance sheet
Loans receivable from affiliates (Notes 7 and 12)1	—	1
Equity investments
Bruce Power	5,783	4,493
Coastal GasLink (Note 7)1	—	386
Pipeline equity investments and other	1,148	1,219
Long-term loans receivable from affiliate (Note 7)	—	238
Off-balance sheet2
Bruce Power3	2,025	974
Coastal GasLink4	3,300	3,037
Pipeline equity investments	58	171
Maximum exposure to loss	12,314	10,519

1The pre-impairment balances in Equity investments ($2,798 million) and Loans receivable from affiliates ($250 million) at December 31, 2022 related to TC Energy’s investment in Coastal GasLink LP were reduced to a nil balance and an impairment charge was recognized in fourth quarter 2022 in Impairment of equity investment in the Consolidated statement of income.

2Includes maximum potential exposure to guarantees and future funding commitments.

3On March 7, 2022, the IESO verified Bruce Power's Unit 3 MCR program final cost and schedule duration estimate submitted in December 2021. As at December 31, 2022, the maximum exposure includes TC Energy's portion of capital to be invested under the Unit 3 MCR program as well as the expected increase in the capital to be invested under the Asset Management program through 2027.

4TC Energy is contractually obligated to fund the capital costs to complete the Coastal GasLink pipeline by funding the remaining equity requirements of Coastal GasLink LP through incremental capacity on the subordinated loan agreement with Coastal GasLink LP until final costs are determined. The committed capacity under the subordinated loan agreement was $1,262 million as at December 31, 2022 and will increase in the future as required to support the estimated $3.3 billion of additional equity financing requirements through completion of construction of the Coastal GasLink pipeline. The determination of the Company’s maximum exposure to loss involves an estimate of the capital costs to complete the Coastal GasLink pipeline.

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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