financing costs

6 Months Ended

Jun. 30, 2024

financing costs

financing costs

9	financing costs


		Three months						Six months
Periods ended June 30 (millions)		2024			2023			2024			2023
Interest expense
Long-term debt, excluding lease liabilities – gross		$	298		$	270		$	595		$	533
Long-term debt, excluding lease liabilities – capitalized ¹			(4)			(1)			(4)			(3)
Long-term debt, excluding lease liabilities			294			269			591			530
Lease liabilities (Note 19)			40			31			80			59
Short-term borrowings and other			9			9			10			12
Accretion on provisions (Note 25)			7			7			15			15
			350			316			696			616
Employee defined benefit plans net interest (Note 15)			2			2			4			4
Foreign exchange			3			—			(6)			4
Unrealized changes in virtual power purchase agreements forward element			37			7			103			26
			392			325			797			650
Interest income			(10)			(2)			(21)			(7)
		$	382		$	323		$	776		$	643
Net interest cost (Note 3)								$	673		$	616
Interest expense on long-term debt, excluding lease liabilities – capitalized ¹									(4)			(3)
Employee defined benefit plans net interest									4			4
Unrealized changes in virtual power purchase agreements forward element									103			26
								$	776		$	643

1	Interest on long-term debt, excluding lease liabilities, at a composite rate of 5.3% (2023 - 3.1%) was capitalized to intangible assets with indefinite lives during the period.