XML 186 R54.htm IDEA: XBRL DOCUMENT v3.20.1

Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2019

13. Derivative Instruments

Derivative assets and liabilities

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		2019		2018		2019		2018
Cash flow hedges
Foreign exchange forwards	$	-	$	-	$	1	$	5
		-		-		1		5
Regulatory deferral
Commodity swaps and forwards
Coal purchases		8		71		39		1
Power purchases		23		2		36		1
Natural gas purchases and sales		2		2		5		4
Heavy fuel oil purchases		1		1		-		1
Foreign exchange forwards		2		29		6		-
		36		105		86		7
HFT derivatives
Power swaps and physical contracts		19		62		22		76
Natural gas swaps, futures, forwards, physical contracts		151		125		381		403
		170		187		403		479
Other derivatives
Equity derivatives and interest rate swaps		1		1		-		-
		1		1		-		-
Total gross current derivatives		207		293		490		491
Impact of master netting agreements with intent to settle net or simultaneously		(120)		(126)		(120)		(126)
		87		167		370		365
Current		54		148		268		260
Long-term		33		19		102		105
Total derivatives	$	87	$	167	$	370	$	365
Derivative assets and liabilities are classified as current or long-term based upon the maturities of the underlying contracts.

Details of master netting agreements

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		2019		2018		2019		2018
Regulatory deferral	$	8	$	1	$	8	$	1
HFT derivatives		112		125		112		125
Total impact of master netting agreements withintent to settle net or simultaneously	$	120	$	126	$	120	$	126

Cash flow hedges recorded in income and AOCI

For the	Year ended December 31
millions of Canadian dollars		2019				2018
	Foreign				Foreign
	exchange		Power		exchange
	forwards		swaps		forwards
Realized gain (loss) in operating revenue – regulated		(3)		-		5
Realized gain (loss) in non-regulated fuel for generation and purchased power		-		1		-
Total gains (losses) in Net income	$	(3)	$	1	$	5
As at	December 31
millions of Canadian dollars		2019				2018
	Foreign				Foreign
	exchange		Power		exchange
	forwards		swaps		forwards
Total unrealized gain (loss) in AOCI – effective portion, net of tax	$	(1)	$	(1)	$	(6)
The Company expects $1 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, 2019, the Company had the following notional volumes of outstanding derivatives designated as cash flow hedges that are expected to settle as outlined below:
millions		2020
Foreign exchange forwards (USD) sales	$	30

Realized and unrealized gains (losses) with respect to derivatives

For the	Year ended December 31
millions of Canadian dollars				2019				2018
	Commodity swaps and forwards		Foreign exchange forwards		Commodity swaps and forwards			Foreign exchange forwards
Unrealized gain (loss) in regulatory assets	$	(89)	$	(6)	$	(34)	$	4
Unrealized gain (loss) in regulatory liabilities		9		(8)		29		24
Realized (gain) loss in regulatory liabilities		(2)		-		(8)		-
Realized (gain) loss in inventory (1)		(36)		(11)		(55)		(18)
Realized (gain) loss in regulated fuel for generation and purchased power (2)		3		(8)		(2)		(9)
Total change derivative instruments	$	(115)	$	(33)	$	(70)	$	1
(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.

For the	Year ended December 31
millions of Canadian dollars		2019		2018
Power swaps and physical contracts in non-regulated operating revenues	$	1	$	(12)
Natural gas swaps, forwards, futures and physical contracts in non-regulated operating revenues		281		205
Power swaps, forwards, futures and physical contracts in non-regulated fuel for generation and purchased power		(6)		2
	$	276	$	195

For the		Year ended December 31
millions of Canadian dollars	2019			2018
	Equity		Interest rate
		derivatives	swaps
Unrealized gain in operating, maintenance and general	$	1	$	-
Unrealized gain (loss) in interest expense, net		-		(1)
Realized gain in operating, maintenance and general		27		-
Total gains (losses) in net income	$	28	$	(1)

Notional volumes of derivatives designated for regulatory deferral that are expected to settle as outlined

	2020	2021-2022
millions	Purchases	Purchases
Coal (metric tonnes)	-	1
Natural Gas (Mmbtu)	12	21
Heavy fuel oil (bbls)	-	1
Power (MWh)	1	3

	2020		2021-2022
Foreign exchange contracts (millions of US dollars)	$	173	$	148
Weighted average rate		1.3148		1.3264
% of USD requirements		85%		39%
The Company reassesses foreign exchange forecasted periodically and will enter into additional hedges or unwind existing hedges, as required.

millions		2020		2021		2022		2023		2024
Natural gas purchases (Mmbtu)		424		84		56		41		26
Natural gas sales (Mmbtu)		345		33		9		2		2
Power purchases (MWh)		1		-		-		-		-
Power sales (MWh)		1		-		-		-		-

Concentration Risk

Concentration Risk
The Company's concentrations of risk consisted of the following:
As at	December 31, 2019			December 31, 2018
	millions of Canadian dollars		% of total exposure	millions of Canadian dollars		% of total exposure
Receivables, net
Regulated utilities
Residential	$	344	31%	$	384	28%
Commercial		170	15%		182	13%
Industrial		66	6%		57	4%
Other		131	12%		84	6%
		711	64%		707	51%
Trading group
Credit rating of A- or above		38	3%		49	4%
Credit rating of BBB- to BBB+		59	5%		70	5%
Credit rating of CCC- to CCC+		-	0%		8	0%
Not rated		95	9%		108	8%
		192	17%		235	17%
Other accounts receivable		184	16%		273	20%
Classification as assets held for sale (1)		(55)	-5%		-	0%
		1,032	92%		1,215	88%
Derivative Instruments (current and long-term)
Credit rating of A- or above		47	4%		130	9%
Credit rating of BBB- to BBB+		8	1%		9	1%
Not rated		32	3%		28	2%
		87	8%		167	12%
	$	1,119	100%	$	1,382	100%
(1) Emera Maine’s assets and liabilities are classified as held for sale. Refer to note 4 for further details.

Cash Collateral

As at	December 31		December 31
millions of Canadian dollars		2019		2018
Cash collateral provided to others	$	101	$	103
Cash collateral received from others		2		77

X

- References

No definition available.

+ Details

Name:	us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of derivative and other financial liabilities that are subject to offsetting, including master netting arrangements.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=51824906&loc=SL20225862-175312

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=51824906&loc=SL20225877-175312

+ Details

Name:	us-gaap_OffsettingLiabilitiesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of gain (loss) on derivative and nonderivative instruments designated and qualifying as cash flow hedge recorded in accumulated other comprehensive income (AOCI) and reclassified into earnings.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624171-113959

+ Details

Name:	us-gaap_ScheduleOfCashFlowHedgesIncludedInAccumulatedOtherComprehensiveIncomeLossTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4E
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624181-113959

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4A
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5618551-113959

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624171-113959

+ Details

Name:	us-gaap_ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624163-113959

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5580258-113959

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41620-113959

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5579245-113959

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41638-113959

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41678-113959

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41641-113959

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624171-113959

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(n)(2))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5579240-113959

+ Details

Name:	us-gaap_ScheduleOfDerivativeInstrumentsTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of financial instruments held by the entity for its own account for trading or investment purposes that are carried at fair value and pledged to counterparties as collateral for financing transactions. Description may include equity, fixed income, debt or other securities.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 30
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=66007379&loc=d3e113888-111728

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 30
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=109249958&loc=SL6224234-111729

+ Details

Name:	us-gaap_ScheduleOfFinancialInstrumentsOwnedAndPledgedAsCollateralTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the notional amounts of outstanding derivative positions.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5579245-113959

+ Details

Name:	us-gaap_ScheduleOfNotionalAmountsOfOutstandingDerivativePositionsTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the nature of a concentration, a benchmark to which it is compared, and the percentage that the risk is to the benchmark.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=118260190&loc=d3e13537-108611

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 20
-URI http://asc.fasb.org/extlink&oid=118260190&loc=d3e13531-108611

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-Section 50
-Paragraph 20
-URI http://asc.fasb.org/extlink&oid=99393423&loc=d3e6404-108592

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-Section 50
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=99393423&loc=d3e6327-108592

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-Section 50
-Paragraph 18
-URI http://asc.fasb.org/extlink&oid=99393423&loc=d3e6351-108592

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=99393423&loc=d3e6442-108592

+ Details

Name:	us-gaap_SchedulesOfConcentrationOfRiskByRiskFactorTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration