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Risk Management Activities (Tables) | 12 Months Ended
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Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015
Financial Instruments [Abstract] |  |  |
Derivative Financial Instruments | he Corporation had converted a portion of its fixed interest rate debt with a rate of 6.65 per cent to a floating interest rate based on the US LIBOR rate using interest rate swaps as outlined below:
As at Dec. 31 | 2017 |  |  |  | 2016
Notional amount |  | Fair value asset |  | Maturity |  | Notional amount | Fair value asset |  | Maturity
— |  | — |  | — |  | USD50 | 3 |  | 2018
As at Dec. 31 | 2017 | 2016
Type (thousands) | Notional amount sold |  | Notional amount purchased |  | Notional amount sold |  | Notional amount purchased |
Electricity (MWh) | 14,688 |  | 7,348 |  | 19,362 |  | 19,060 |
Natural gas (GJ) | 74,195 |  | 103,805 |  | 146,113 |  | 173,187 |
Transmission (MWh) | 1 |  | 3,455 |  | — |  | 3,429 |
Emissions (tonnes) | 516 |  | 717 |  | 1,370 |  | 1,370 |
Heating oil (gallons) | — |  | — |  | — |  | 294 |
As at Dec. 31 |  | 2017 |  |  | 2016
Notional amount sold | Notional amount purchased | Fair value asset (liability) |  | Maturity | Notional amount sold |  | Notional amount purchased |  | Fair value asset (liability) |  | Maturity |
Foreign Exchange Forward Contracts - foreign-denominated receipts/expenditures |  |  |  |  |  |
AUD170 | CAD157 | (9 | ) | 2018-2021 | USD152 |  | CAD216 |  | 12 |  | 2017-2020 |
USD73 | CAD104 | 11 |  | 2018-2021 | AUD232 |  | CAD219 |  | (3 | ) | 2017-2020 |
Foreign Exchange Forward Contracts - foreign-denominated debt |  |  |  |  |  |  |  |  |
CAD294 | USD230 | (4 | ) | 2018 | — |  | — |  | — |  | — |
Cross Currency Swaps - foreign-denominated debt |  |  |  |  |
CAD306 | USD270 | 35 |  | 2018 | — |  | — |  | — |  | — |
| Net Risk Management Assets and Liabilities Aggregate net risk management assets and (liabilities) are as follows:
As at Dec. 31, 2017 |  |  |  |
| Cash flow hedges |  | Fair value hedges |  | Not designated as a hedge |  | Total |
Commodity risk management |  |  |  |  |  |  |  |
Current | 74 |  | — |  | 7 |  | 81 |
Long-term | 636 |  | — |  | 11 |  | 647 |
Net commodity risk management assets | 710 |  | — |  | 18 |  | 728 |
Other |  |  |  |  |  |  |  |
Current | — |  | — |  | 37 |  | 37 |
Long-term | — |  | — |  | (3 | ) | (3 | )
Net other risk management assets (liabilities) | — |  | — |  | 34 |  | 34 |
Total net risk management assets (liabilities) | 710 |  | — |  | 52 |  | 762 |
As at Dec. 31, 2016 |  |  |  |
| Cash flow hedges |  | Fair value hedges |  | Not designated as a hedge |  | Total |
Commodity risk management |  |  |  |  |  |  |  |
Current | 86 |  | — |  | (16 | ) | 70 |
Long-term | 683 |  | — |  | (9 | ) | 674 |
Net commodity risk management assets | 769 |  | — |  | (25 | ) | 744 |
Other |  |  |  |  |  |  |  |
Current | 105 |  | — |  | 8 |  | 113 |
Long-term | 59 |  | 3 |  | 1 |  | 63 |
Net other risk management assets (liabilities) | 164 |  | 3 |  | 9 |  | 176 |
Total net risk management assets (liabilities) | 933 |  | 3 |  | (16 | ) | 920 |
The Corporation’s outstanding commodity derivative instruments designated as hedging instruments are as follows:
As at Dec. 31 | 2017 | 2016
Type (thousands) | Notional amount sold |  | Notional amount purchased |  | Notional amount sold |  | Notional amount purchased |
Electricity (MWh) | 1,997 |  | 44 |  | 4,916 |  | — |
As at Dec. 31 | 2017 | 2016
Notional amount sold |  | Notional amount purchased |  | Fair value asset |  | Maturity |  | Notional amount sold |  | Notional amount purchased |  | Fair value asset |  | Maturity |
Foreign Exchange Forward Contracts - foreign-denominated receipts/expenditures |  |  |  |
CAD9 |  | USD7 |  | — |  | 2018 |  | — |  | — |  | — |  | — |
CAD14 |  | EUR9 |  | — |  | 2018 |  | — |  | — |  | — |  | — |
AUD1 |  | JPY119 |  | — |  | 2018 |  | AUD8 |  | JPY710 |  | 1 |  | 2017 |
Foreign Exchange Forward Contracts - foreign-denominated debt |  |  |  |  |  |
— |  | — |  | — |  | — |  | CAD26 |  | USD20 |  | — |  | 2018 |
Cross-Currency Swaps - foreign-denominated debt |  |  |  |  |  |  |  |
— |  | — |  | — |  | — |  | CAD434 |  | USD400 |  | 104 |  | 2017 |
— |  | — |  | — |  | — |  | CAD306 |  | USD270 |  | 59 |  | 2018 |
The Corporation’s hedges of its net investment in foreign operations in 2017 were comprised of US-dollar-denominated long-term debt with a face value of US$480 million (2016 - US$630 million).
As at Dec. 31 |  | 2017 |  |  | 2016
| Notional amount | Fair value asset |  | Maturity | Notional amount |  | Fair value asset |  | Maturity |
Fixed rate debt | USD50 | 1 |  | 2018 | — |  | — |  | — |
Floating rate debt | USD22 | — |  | 2018-24 | — |  | — |  | — |
Net Arrangements |  | Information about the Corporation’s financial assets and liabilities that are subject to enforceable master netting arrangements or similar agreements is as follows:
As at Dec. 31 | 2017 | 2016
| Current financial assets |  | Long-term financial assets |  | Current financial liabilities |  | Long-term financial liabilities |  | Current financial assets |  | Long-term financial assets |  | Current financial liabilities |  | Long-term financial liabilities |
Gross amounts recognized | 281 |  | 637 |  | (159 | ) | (38 | ) | 315 |  | 744 |  | (113 | ) | (53 | )
Gross amounts set-off | (43 | ) | — |  | 43 |  | — |  | (24 | ) | (3 | ) | 24 |  | 3 |
Net amounts as presented in the Consolidated Statements of Financial Position | 238 |  | 637 |  | (116 | ) | (38 | ) | 291 |  | 741 |  | (89 | ) | (50 | )
Effect of Hedges | The following tables summarize the pre-tax amounts recognized in and reclassified out of OCI related to cash flow hedges:
Year ended Dec. 31, 2017
|  |  |  | Effective portion |  |  |  | Ineffective portion |  |
Derivatives in cash flow hedging relationships |  | Pre-tax gain (loss) recognized in OCI |  |  | Location of (gain) loss reclassified from OCI |  | Pre-tax (gain) loss reclassified from OCI |  |  | Location of (gain) loss reclassified from OCI |  | Pre-tax (gain) loss recognized in earnings |
Commodity contracts |  | 163 |  |  | Revenue |  | (172 | ) |  | Revenue |  | — |
|  |  |  |  | Fuel and purchased power |  | — |  |  | Fuel and purchased power |  | — |
Foreign exchange forwards on commodity contracts |  | — |  |  | Revenue |  | — |  |  | Revenue |  | — |
Foreign exchange forwards on project hedges |  | (1 | ) |  | Property, plant, and equipment |  | — |  |  | Foreign exchange (gain) loss |  | — |
Foreign exchange forwards on US debt |  | — |  |  | Foreign exchange (gain) loss |  | 3 |  |  | Foreign exchange (gain) loss |  | — |
Cross-currency swaps |  | (26 | ) |  | Foreign exchange (gain) loss |  | 24 |  |  | Foreign exchange (gain) loss |  | — |
Forward starting interest rate swaps |  | — |  |  | Interest expense |  | 7 |  |  | Interest expense |  | — |
OCI impact |  | 136 |  |  | OCI impact |  | (138 | ) |  | Net earnings impact |  | — |
Year ended Dec. 31, 2016
|  |  |  | Effective portion |  |  |  | Ineffective portion |  |
Derivatives in cash flow hedging relationships |  | Pre-tax gain (loss) recognized in OCI |  |  | Location of (gain) loss reclassified from OCI |  | Pre-tax (gain) loss reclassified from OCI |  |  | Location of (gain) loss reclassified from OCI |  | Pre-tax (gain) loss recognized in earnings |
Commodity contracts |  | 304 |  |  | Revenue |  | (169 | ) |  | Revenue |  | — |
|  |  |  |  | Fuel and purchased power |  | 44 |  |  | Fuel and purchased power |  | 31 |
Foreign exchange forwards on commodity contracts |  | (5 | ) |  | Revenue |  | (16 | ) |  | Revenue |  | (15 | )
Foreign exchange forwards on project hedges |  | (1 | ) |  | Property, plant, and equipment |  | — |  |  | Foreign exchange (gain) loss |  | — |
Foreign exchange forwards on US debt |  | (2 | ) |  | Foreign exchange (gain) loss |  | 53 |  |  | Foreign exchange (gain) loss |  | — |
Cross-currency swaps |  | (25 | ) |  | Foreign exchange (gain) loss |  | (23 | ) |  | Foreign exchange (gain) loss |  | — |
Forward starting interest rate swaps |  | — |  |  | Interest expense |  | 6 |  |  | Interest expense |  | — |
OCI impact |  | 271 |  |  | OCI impact |  | (105 | ) |  | Net earnings impact |  | 16 |
Year ended Dec. 31, 2015
|  |  |  | Effective portion |  |  |  | Ineffective portion |  |
Derivatives in cash flow hedging relationships |  | Pre-tax gain (loss) recognized in OCI |  |  | Location of (gain) loss reclassified from OCI |  | Pre-tax (gain) loss reclassified from OCI |  |  | Location of (gain) loss reclassified from OCI |  | Pre-tax (gain) loss recognized in earnings |
Commodity contracts |  |  |  |  | Revenue |  | (110 | ) |  | Revenue |  | 5 |
|  | 308 |  |  | Fuel and purchased power |  | 41 |  |  | Fuel and purchased power |  | — |
Foreign exchange forwards on commodity contracts |  | 32 |  |  | Revenue |  | (12 | ) |  | Revenue |  | — |
Foreign exchange forwards on project hedges |  | 4 |  |  | Property, plant, and equipment |  | (1 | ) |  | Foreign exchange (gain) loss |  | — |
Foreign exchange forwards on U.S. debt |  | 10 |  |  | Foreign exchange (gain) loss |  | (12 | ) |  | Foreign exchange (gain) loss |  | — |
Cross-currency swaps |  | 163 |  |  | Foreign exchange (gain) loss |  | (163 | ) |  | Foreign exchange (gain) loss |  | — |
Forward starting interest rate swaps |  | — |  |  | Interest expense |  | 7 |  |  | Interest expense |  | — |
OCI impact |  | 517 |  |  | OCI impact |  | (250 | ) |  | Net earnings impact |  | 5 |
Interest Rate Risk | The possible effect on net earnings and OCI due to changes in market interest rates affecting the Corporation’s floating rate debt, interest-bearing assets, financial instruments measured at fair value through profit or loss, and hedging interest rate derivatives, is outlined below. The sensitivity analysis has been prepared using management’s assessment that a 15 basis point (2016 - 15 basis point, 2015 - 15 basis point) increase or decrease is a reasonable potential change over the next quarter in market interest rates.
Year ended Dec. 31 | 2017 | 2016 | 2015
| Net earnings increase(1) |  | OCI loss(1) |  | Net earnings increase(1) |  | OCI loss(1) |  | Net earnings increase(1) |  | OCI loss(1) |
Basis point change | — |  | — |  | — |  | — |  | 1 |  | — |
(1)This calculation assumes a decrease in market interest rates. An increase would have the opposite effect. |  |
Currency Rate Risk |  | The possible effect on net earnings and OCI, due to changes in foreign exchange rates associated with financial instruments denominated in currencies other than the Corporation’s functional currency, is outlined below. The sensitivity analysis has been prepared using management’s assessment that an average four cent (2016 and 2015 - four cent) increase or decrease in these currencies relative to the Canadian dollar is a reasonable potential change over the next quarter.
Year ended Dec. 31 | 2017 | 2016 | 2015
Currency | Net earnings increase (decrease)(1) |  | OCI gain(1),(2) |  | Net earnings increase(1) |  | OCI gain(1),(2) |  | Net earnings decrease(1) |  | OCI gain(1),(2) |
USD | (5 | ) | — |  | (5 | ) | — |  | 2 |  | 5 |
AUD | (7 | ) | — |  | (7 | ) | — |  | (3 | ) | — |
Total | (12 | ) | — |  | (12 | ) | — |  | (1 | ) | 5 |
(1) These calculations assume an increase in the value of these currencies relative to the Canadian dollar. A decrease would have the opposite effect. (2) The foreign exchange impact related to financial instruments designated as hedging instruments in net investment hedges has been excluded. |
Credit Risk | The following table outlines the Corporation’s maximum exposure to credit risk without taking into account collateral held, including the distribution of credit ratings, as at Dec. 31, 2017:
| Investment grade (Per cent) |  | Non-investment grade (Per cent) |  | Total (Per cent) |  | Total amount |
Trade and other receivables(1) | 87 |  | 13 |  | 100 |  | 933 |
Long-term finance lease receivables | 96 |  | 4 |  | 100 |  | 215 |
Risk management assets(1) | 99 |  | 1 |  | 100 |  | 903 |
Loan receivable(2) | — |  | 100 |  | 100 |  | 33 |
Total |  |  |  | 2,084 |
(1) Letters of credit and cash and cash equivalents are the primary types of collateral held as security related to these amounts. (2) The counterparty has no external credit rating. Excludes $5 million current portion classified in trade and other receivables. |  |
Maturity Analysis of Financial Liabilities | A maturity analysis of the Corporation’s financial liabilities is as follows:
| 2018 |  | 2019 |  | 2020 |  | 2021 |  | 2022 |  | 2023 and thereafter |  | Total |
Accounts payable and accrued liabilities | 595 |  | — |  | — |  | — |  | — |  | — |  | 595 |
Long-term debt(1) | 730 |  | 469 |  | 472 |  | 100 |  | 581 |  | 1,312 |  | 3,664 |
Commodity risk management assets | (81 | ) | (94 | ) | (88 | ) | (102 | ) | (103 | ) | (260 | ) | (728 | )
Other risk management (assets) liabilities | (37 | ) | 1 |  | 1 |  | 1 |  | — |  | — |  | (34 | )
Finance lease obligations | 18 |  | 15 |  | 12 |  | 6 |  | 4 |  | 14 |  | 69 |
Interest on long-term debt and finance lease obligations(2) | 177 |  | 153 |  | 125 |  | 102 |  | 95 |  | 692 |  | 1,344 |
Dividends payable | 34 |  | — |  | — |  | — |  | — |  | — |  | 34 |
Total | 1,436 |  | 544 |  | 522 |  | 107 |  | 577 |  | 1,758 |  | 4,944 |
(1) Excludes impact of hedge accounting. (2) Not recognized as a financial liability on the Consolidated Statements of Financial Position. |  |

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