XML 31 R20.htm IDEA: XBRL DOCUMENT
v3.19.1

LONG-TERM INVESTMENTS | 12 Months Ended
--- | ---
Dec. 31, 2018
Equity Method Investments and Joint Ventures [Abstract] |
LONG-TERM INVESTMENTS | LONG-TERM INVESTMENTS
| Ownership |  |  |  |  |
December 31, | Interest |  | 2018 |  | 2017 |
(millions of Canadian dollars) |  |  |  |  |  |
EQUITY INVESTMENTS |  |  |  |  |  |
Liquids Pipelines |  |  |  |  |  |
Bakken Pipeline System 1 | 27.6 | % | 2,039 |  | 1,938 |
Seaway Crude Pipeline System | 50.0 | % | 3,113 |  | 2,882 |
Illinois Extension Pipeline Company, L.L.C.2 | 65.0 | % | 724 |  | 686 |
Other | 30.0% - 43.8% |  | 97 |  | 87 |
Gas Transmission and Midstream |  |  |
Alliance Pipeline 3 | 50.0 | % | 368 |  | 375 |
Aux Sable | 42.7% - 50.0% |  | 311 |  | 300 |
DCP Midstream, LLC 4 | 50.0 | % | 2,368 |  | 2,143 |
Gulfstream Natural Gas System, L.L.C.4 | 50.0 | % | 1,289 |  | 1,205 |
Nexus Gas Transmission, LLC 4 | 50.0 | % | 1,757 |  | 834 |
Offshore - various joint ventures | 22.0% - 74.3% |  | 400 |  | 389 |
PennEast Pipeline Company LLC 4 | 20.0 | % | 97 |  | 69 |
Sabal Trail Transmission, LLC 5 | 50.0 | % | 1,586 |  | 2,355 |
Southeast Supply Header L.L.C.4 | 50.0 | % | 519 |  | 486 |
Steckman Ridge LP 4 | 49.5 | % | 237 |  | 221 |
Texas Express Pipeline 6 | 35.0 | % | — |  | 430 |
Vector Pipeline L.P. | 60.0 | % | 198 |  | 169 |
Other 4 | 33.3% - 50.0% |  | 6 |  | 34 |
Gas Distribution |  |  |
Noverco Common Shares | 38.9 | % | — |  | — |
Other 4 | 50.0 | % | 15 |  | 15 |
Green Power and Transmission |  |  |
Eolien Maritime France SAS | 50.0 | % | 68 |  | 69 |
Enbridge Renewable Infrastructure Investments S.a.r.l.7 | 25.5 | % | 127 |  | 763 |
Rampion Offshore Wind Project | 24.9 | % | 638 |  | 555 |
Other | 19.0% - 50.0% |  | 72 |  | 95 |
Eliminations and Other |  |  |
Other | 19.0% - 42.7% |  | 10 |  | 26 |
OTHER LONG-TERM INVESTMENTS |  |  |
Gas Distribution |  |  |
Noverco Preferred Shares |  | 478 |  | 371 |
Green Power and Transmission |  |  |
Emerging Technologies and Other |  | 80 |  | 80 |
Eliminations and Other |  |  |
Other |  | 110 |  | 67 |
|  |  | 16,707 |  | 16,644 |
1 | On February 15, 2017, EEP acquired an effective 27.6% interest in the Dakota Access and Energy Transfer Crude Oil Pipelines (collectively, the Bakken Pipeline System) for a purchase price of $2 billion (US$1.5 billion). The Bakken Pipeline System was placed into service on June 1, 2017. For details regarding our funding arrangement, refer to Note 20 - Noncontrolling Interests.
2 | Owns the Southern Access Extension Project.
3 | Certain assets of the Alliance Pipeline are pledged as collateral to Alliance Pipeline lenders.
4 | On February 27, 2017, we acquired Spectra Energy's interests in DCP Midstream, Gulfstream Natural Gas System, L.L.C, Nexus, PennEast, Southeast Supply Header L.L.C., Steckman Ridge LP and other equity investments as part of the Merger Transaction (Note 8).
5 | On February 27, 2017, we acquired Spectra Energy's consolidated interest in Sabal Trail as part of the Merger Transaction (Note 8). On July 3, 2017, Sabal Trail was placed into service and the assets, liabilities, and noncontrolling interests were deconsolidated as at the in-service date.
6 | On August 1, 2018 the sale of Midcoast Operating, L.P. and its subsidiaries closed. Upon closing of the sale, our interest in the Texas Express NGL pipeline system was sold along with the MOLP assets. The carrying value of $447 million of our equity method investment in the Texas Express NGL pipeline system was included within the disposal group of the transaction. For further details on the sale transaction please refer to Note 8 - Acquisitions and Dispositions.
7 | On February 8, 2017, we acquired an effective 50% interest in EnBW Hohe See GmbH & Co. KG. On August 1, 2018 we transferred our interest in the Hohe See Offshore wind facilities and its subsequent expansion to a newly formed entity, ERII. Subsequently, we sold a 49% interest in ERII to CPPIB, reducing our interest in the project to 25.5%.
Equity investments include the unamortized excess of the purchase price over the underlying net book value of the investees’ assets at the purchase date. As at December 31, 2018, this comprised of $2.2 billion in Goodwill and $706 million in amortizable assets. As at December 31, 2017, this comprised of $2.0 billion in Goodwill and $643 million in amortizable assets. For the years ended December 31, 2018, 2017 and 2016, dividends received from equity investments were $2.8 billion, $1.4 billion and $825 million, respectively. Summarized combined financial information of our interest in unconsolidated equity investments (presented at 100%) is as follows:
| Year Ended December 31,
| 2018 | 2017 | 2016
| Seaway |  | Other |  | Total |  | Seaway |  | Other |  | Total |  | Seaway |  | Other |  | Total |
(millions of Canadian dollars) |  |  |  |  |  |  |  |  |
Operating revenues | 966 |  | 18,251 |  | 19,217 |  | 959 |  | 15,254 |  | 16,213 |  | 938 |  | 3,164 |  | 4,102 |
Operating expenses | 212 |  | 15,422 |  | 15,634 |  | 286 |  | 12,911 |  | 13,197 |  | 293 |  | 3,051 |  | 3,344 |
Earnings/(loss) | 646 |  | 2,308 |  | 2,954 |  | 672 |  | 2,056 |  | 2,728 |  | 643 |  | (2 | ) | 641 |
Earnings attributable to controlling interests | 323 |  | 1,059 |  | 1,382 |  | 336 |  | 926 |  | 1,262 |  | 322 |  | 147 |  | 469 |
| December 31, 2018 | December 31, 2017
| Seaway |  | Other |  | Total |  | Seaway |  | Other |  | Total |
(millions of Canadian dollars) |  |  |  |  |  |
Current assets | 113 |  | 3,176 |  | 3,289 |  | 106 |  | 3,432 |  | 3,538 |
Non-current assets | 3,585 |  | 45,531 |  | 49,116 |  | 3,329 |  | 41,697 |  | 45,026 |
Current liabilities | 123 |  | 5,413 |  | 5,536 |  | 143 |  | 3,311 |  | 3,454 |
Non-current liabilities | 16 |  | 15,859 |  | 15,875 |  | 13 |  | 13,582 |  | 13,595 |
Noncontrolling interests | — |  | 3,479 |  | 3,479 |  | — |  | 3,191 |  | 3,191 |
Sabal Trail Transmission, LLC On July 3, 2017, Sabal Trail was placed into service. In accordance with the Sabal Trail LLC Agreement, upon the in-service date, the power to direct Sabal Trail’s activities became shared with its members. We are no longer the primary beneficiary and deconsolidated the assets, liabilities and noncontrolling interests related to Sabal Trail as at the in-service date. At deconsolidation, our 50% interest in Sabal Trail was recorded at its fair value of $2.3 billion (US$1.9 billion), which approximated its carrying value as a long-term equity investment. As a result, there was no gain or loss recognized for the year ended December 31, 2017 related to the remeasurement of the retained equity interest to its fair value. The fair value was determined using the income approach which is based on the present value of the future cash flows. Noverco Inc. As at December 31, 2018 and 2017, we owned an equity interest in Noverco through ownership of 38.9% of its common shares and an investment in preferred shares. The preferred shares are entitled to a cumulative preferred dividend based on the average yield of Government of Canada bonds maturing in 10 years plus a margin of 4.38%. As at December 31, 2018 and 2017, Noverco owned an approximate 1.4% and 1.9% reciprocal shareholding in our common shares, respectively. Noverco sold 4.4 million common shares in December 2018 and purchased 1.2 million common shares in February 2016. Shares purchased and sold were treated as treasury stock on the Consolidated Statements of Changes in Equity. As a result of Noverco’s reciprocal shareholding in our common shares, as at December 31, 2018 and 2017, we had an indirect pro-rata interest of 0.5% and 0.7%, respectively, in our own shares. Both the equity investment in Noverco and shareholders’ equity have been reduced by the reciprocal shareholding of $88 million and $102 million as at December 31, 2018 and 2017. Noverco records dividends paid from us as dividend income and we eliminate these dividends from our equity earnings of Noverco. We record our pro-rata share of dividends paid by us to Noverco as a reduction of dividends paid and an increase in our investment in Noverco.

X
- References No definition available. + Details
Name: | us-gaap_EquityMethodInvestmentsAndJointVenturesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration