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Derivative Instruments (Tables) | 12 Months Ended
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Dec. 31, 2016
Derivative Instruments [Abstract] |
Schedule of Derivative Instruments [Table Text Block] |
Derivative assets and liabilities relating to the foregoing categories consisted of the following:
|  | Derivative Assets |  | Derivative Liabilities
As at | December 31 | December 31 | December 31 | December 31
millions of Canadian dollars |  | 2016 |  | 2015 |  | 2016 |  | 2015
Current |  |  |  |  |  |  |  |
Cash flow hedges |  |  |  |  |  |  |  |
Power swaps | $ | 5 | $ | 8 | $ | 2 | $ | 1
Foreign exchange forwards |  | - |  | - |  | 12 |  | 14
|  | 5 |  | 8 |  | 14 |  | 15
Regulatory deferral |  |  |  |  |  |  |  |
Commodity swaps and forwards |  |  |  |  |  |  |  |
Coal purchases |  | 26 |  | - |  | 9 |  | 12
Power purchases |  | 3 |  | - |  | 1 |  | -
Natural gas purchases and sales |  | 28 |  | 2 |  | - |  | 1
Heavy fuel oil purchases |  | 6 |  | - |  | 4 |  | 20
Foreign exchange forwards |  | 56 |  | 85 |  | - |  | 10
Physical natural gas purchases and sales |  | - |  | 2 |  | - |  | -
|  | 119 |  | 89 |  | 14 |  | 43
HFT derivatives |  |  |  |  |  |  |  |
Power swaps and physical contracts |  | 33 |  | 151 |  | 44 |  | 119
Natural gas swaps, futures, forwards, physical contracts |  | 93 |  | 99 |  | 357 |  | 359
Foreign exchange options |  | - |  | - |  | - |  | 2
|  | 126 |  | 250 |  | 401 |  | 480
Other derivatives |  |  |  |  |  |  |  |
Foreign exchange forwards |  | - |  | 92 |  | 1 |  | -
|  | - |  | 92 |  | 1 |  | -
Total gross current derivatives |  | 250 |  | 439 |  | 430 |  | 538
Impact of master netting agreements with intent to settle net or simultaneously |  | (105) |  | (189) |  | (105) |  | (189)
Total current derivatives |  | 145 |  | 250 |  | 325 |  | 349
Long-term |  |  |  |  |  |  |  |
Cash flow hedges |  |  |  |  |  |  |  |
Power swaps |  | 5 |  | 12 |  | 3 |  | 4
Foreign exchange forwards |  | - |  | - |  | 10 |  | 27
|  | 5 |  | 12 |  | 13 |  | 31
Regulatory deferral |  |  |  |  |  |  |  |
Commodity swaps and forwards |  |  |  |  |  |  |  |
Coal purchases |  | 57 |  | - |  | - |  | 4
Power purchases |  | 4 |  | - |  | 3 |  | -
Natural gas purchases and sales |  | 5 |  | - |  | 2 |  | -
Heavy fuel oil purchases |  | 4 |  | - |  | 3 |  | 17
Foreign exchange forwards |  | 50 |  | 121 |  | - |  | -
|  | 120 |  | 121 |  | 8 |  | 21
HFT derivatives |  |  |  |  |  |  |  |
Power swaps and physical contracts |  | 14 |  | 13 |  | 27 |  | 28
Natural gas swaps, futures, forwards and physical contracts |  | 18 |  | 72 |  | 127 |  | 63
Foreign exchange options |  | - |  | 1 |  | - |  | 1
|  | 32 |  | 86 |  | 154 |  | 92
Other derivatives |  |  |  |  |  |  |  |
Interest rate swap |  | - |  | - |  | 1 |  | 3
|  | - |  | - |  | 1 |  | 3
Total gross long-term derivatives |  | 157 |  | 219 |  | 176 |  | 147
Impact of master netting agreements with intent to settle net or simultaneously |  | (26) |  | (51) |  | (26) |  | (51)
Total long-term derivatives |  | 131 |  | 168 |  | 150 |  | 96
Total derivatives | $ | 276 | $ | 418 | $ | 475 | $ | 445
Derivative assets and liabilities are classified as current or long-term based upon the maturities of the underlying contracts.
Offsetting Liabilities [Table Text Block] |
Details of master netting agreements, shown net on the Consolidated Balance Sheets, are summarized in the following table:
|  | Derivative Assets |  | Derivative Liabilities
As at | December 31 | December 31 | December 31 | December 31
millions of Canadian dollars |  | 2016 |  | 2015 |  | 2016 |  | 2015
Regulatory deferral | $ | 10 | $ | - | $ | 10 | $ | -
HFT derivatives |  | 121 |  | 240 |  | 121 |  | 240
Total impact of master netting agreements with intent to settle net or simultaneously | $ | 131 | $ | 240 | $ | 131 | $ | 240
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block] |
For the | Year ended December 31
millions of Canadian dollars |  |  |  |  |  | 2016 |  |  |  |  |  | 2015
|  |  | Interest | Foreign |  |  | Interest | Foreign
Power | rate | exchange | Power | rate | exchange
swaps | swaps | forwards | swaps | swaps | forwards
Realized gain (loss) in non-regulated fuel for generation and purchased power |  | 2 |  | - |  | - |  | 5 |  | - |  | -
Realized gain (loss) in operating revenue – Regulated |  | - |  | - |  | (12) |  | - |  | - |  | (9)
Realized gain (loss) in income from equity investments |  | - |  | (1) |  | - |  | - |  | (1) |  | -
Total gains (losses) in Net income | $ | 2 | $ | (1) | $ | (12) | $ | 5 | $ | (1) | $ | (9)
As at | December 31
millions of Canadian dollars |  |  |  |  |  | 2016 |  |  |  |  |  | 2015
|  | Interest | Foreign |  | Interest | Foreign
Power | rate | exchange | Power | rate | exchange
swaps | swaps | forwards | swaps | swaps | forwards
Total unrealized gain (loss) in AOCI – effective portion, net of tax | $ | 2 | $ | - | $ | (22) | $ | 4 | $ | (1) | $ | (42)
The Company expects $14 million of unrealized losses currently in AOCI to be reclassified into net income within the next twelve months, as the underlying hedged transactions settle.
As at December 31, 2016, the Company had the following notional volumes of outstanding derivatives designated as cash flow hedges that are expected to settle as outlined below:
millions |  | 2017 |  | 2018 |  | 2019 |  | 2020
Foreign exchange forwards (USD) sales | $ | 53 | $ | 45 | $ | 30 | $ | 30
Foreign exchange forwards (EURO) purchases |  | 3 |  | - |  | - |  | -
Schedule Of Regulatory Deferred Gain Losses Derivatives [Table Text Block] |
For the | Year ended December 31
millions of Canadian dollars |  |  |  |  |  | 2016 |  |  |  |  |  | 2015
| Commodity swaps and forwards | Physical natural gas purchases and sales | Foreign exchange forwards | Commodity swaps and forwards | Physical natural gas purchases and sales | Foreign exchange forwards
Unrealized gain (loss) in regulatory assets | $ | 40 | $ | - | $ | (2) | $ | (24) | $ | - | $ | (7)
Unrealized gain (loss) in regulatory liabilities |  | 101 |  | (1) |  | (30) |  | 1 |  | 9 |  | 173
Realized (gain) loss in regulatory assets |  | - |  | - |  | 12 |  | (3) |  | - |  | -
Realized (gain) loss in regulatory liabilities |  | - |  | - |  | (8) |  | - |  | - |  | -
Realized (gain) loss in property, plant and equipment |  | - |  | - |  | - |  | - |  | - |  | (1)
Realized (gain) loss in inventory (1) |  | 5 |  | - |  | (44) |  | 12 |  | - |  | (44)
Realized (gain) loss in regulated fuel for generation and purchased power (2) |  | 17 |  | (1) |  | (18) |  | (16) |  | (7) |  | (18)
Total change derivative instruments | $ | 163 | $ | (2) | $ | (90) | $ | (30) | $ | 2 | $ | 103
(1) Realized (gains) losses will be recognized in fuel for generation and purchased power when the hedged item is consumed.
(2) Realized (gains) losses on derivative instruments settled and consumed in the period; hedging relationships that have been terminated or the hedged transaction is no longer probable.
Schedule Of Regulatory Commody Swaps Forwards [Table Text Block] |
| 2017 | 2018-2020
millions | Purchases | Purchases
Coal (metric tonnes) | - | 2
Natural Gas (Mmbtu) | 42 | 24
Heavy fuel oil (bbls) | - | 1
| 2017 | 2018-2020
Fuel purchases exposure (millions of US dollars) | $ | 224 | $ | 240
Weighted average rate |  | 1.0722 |  | 1.1138
% of USD requirements |  | 120% |  | 44%
The Company reassesses foreign exchange forecasts periodically and will enter into additional hedges or unwind existing hedges, as required.
Unrealized Gain (Loss) on Investments [Table Text Block] |
For the | Year ended December 31
millions of Canadian dollars |  | 2016 |  | 2015
Power swaps and physical contracts in non-regulated operating revenues | $ | (1) | $ | 10
Natural gas swaps, forwards, futures and physical contracts in non-regulated operating revenues |  | 69 |  | 5
Natural gas swaps, forwards, futures and physical contracts in non-regulated fuel for generation and purchased power |  | (7) |  | (3)
Foreign exchange options in other income (expenses), net |  | (2) |  | (1)
| $ | 59 | $ | 11
Offsetting Liabilities Expected To Settle [Table Text Block] |
millions |  | 2017 |  | 2018 |  | 2019 |  | 2020 |  | 2021
Natural gas purchases (Mmbtu) |  | 270 |  | 69 |  | 54 |  | 45 |  | 45
Natural gas sales (Mmbtu) |  | 202 |  | 20 |  | 16 |  | 12 |  | 1
Power purchases (MWh) |  | 3 |  | - |  | - |  | - |  | -
Power sales (MWh) |  | 4 |  | - |  | - |  | - |  | -
Derivative Documentation Unmet [Table Text Block] |
Other Derivatives |  |  |  |  |  |  |  |
The Company has recognized the following realized and unrealized gains (losses) with respect to cash flow hedges which documentation requirements have not been met:
For the |  | Year ended December 31
millions of Canadian dollars |  |  |  | 2016 |  |  |  | 2015
|  | Interest |  | Foreign |  | Interest |  | Foreign
|  | rate |  | exchange | rate | exchange
| swaps |  | forwards | swaps | forwards
Realized gain (loss) in other income (expense) | $ | - | $ | (87) | $ | - | $ | -
Unrealized gain (loss) in other income (expense) |  | - |  | - |  | - |  | 92
Unrealized gain (loss) in interest expense, net |  | 2 |  | - |  | (3) |  | -
Total gains (losses) in net income | $ | 2 | $ | (87) | $ | (3) | $ | 92
As at December 31, 2016, the Company had interest rate swaps in place for the $250 million non-revolving term credit facility in Brunswick Pipeline for interest payments until the debt matures in 2019.
During the year ended December 31, 2016, $1,519 million in foreign exchange forwards and swaps that were used to partially hedge proceeds for the TECO Energy acquisition settled.
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] |
Concentration Risk |  |  |  |  |  |
The Company's concentrations of risk consisted of the following:
As at | December 31, 2016 | December 31, 2015
| millions of Canadian dollars | % of total exposure | millions of Canadian dollars | % of total exposure
Receivables, net |  |  |  |  |  |
Regulated utilities |  |  |  |  |  |
Residential | $ | 315 | 24% | $ | 189 | 20%
Commercial |  | 170 | 13% |  | 103 | 10%
Industrial |  | 38 | 3% |  | 29 | 3%
Other |  | 69 | 5% |  | 53 | 5%
|  | 592 | 45% |  | 374 | 38%
Trading group |  |  |  |  |  |
Credit rating of A- or above |  | 52 | 4% |  | 31 | 3%
Credit rating of BBB- to BBB+ |  | 60 | 5% |  | 22 | 2%
Not rated |  | 57 | 4% |  | 31 | 3%
|  | 169 | 13% |  | 84 | 8%
Other accounts receivable |  | 253 | 20% |  | 120 | 12%
|  | 1,014 | 78% |  | 578 | 58%
Derivative Instruments (current and long-term) |  |  |  |  |  |
Credit rating of A- or above |  | 252 | 20% |  | 340 | 34%
Credit rating of BBB- to BBB+ |  | 1 | 0% |  | 70 | 7%
Not rated |  | 23 | 2% |  | 8 | 1%
|  | 276 | 22% |  | 418 | 42%
| $ | 1,290 | 100% | $ | 996 | 100%
Schedule of Financial Instruments Owned and Pledged as Collateral [Table Text Block] |
As at | December 31 | December 31
millions of Canadian dollars |  | 2016 |  | 2015
Cash collateral provided to others | $ | 91 | $ | 107
Cash collateral received from others |  | 52 |  | 29

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