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Risk Management Activities (Tables)

12 Months Ended

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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