XML 95 R60.htm IDEA: XBRL DOCUMENT v3.22.4
Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2022
Disclosure of detailed information about financial instruments [abstract]  
Disclosure of financial assets The following table outlines the carrying amounts and classifications of the financial assets and liabilities:
Carrying value as at Dec. 31, 2022Derivatives
used for
hedging		Derivatives
held for
trading (FVTPL)		Amortized costOther financial assets (FVTPL)Other financial assets (FVTOCI)Total
Financial assets    
Cash and cash equivalents(1)
— — 1,134 — — 1,134 
Restricted cash— — 70 — — 70 
Trade and other receivables— — 1,589 — — 1,589 
Long-term portion of finance lease receivables— — 129 — — 129 
Long-term portion of loan receivable(2)
— — 33 — — 33 
Other investments— — — 11 1 12 
Risk management assets    
Current— 709 — — — 709 
Long-term— 161 — — — 161 
Financial liabilities    
Bank overdraft— — 16 — — 16 
Accounts payable and accrued liabilities— — 1,346 — — 1,346 
Dividends payable— — 68 — — 68 
Risk management liabilities    
Current271 858 — — — 1,129 
Long-term76 257 — — — 333 
Credit facilities, long-term debt and lease
  liabilities(3)
— — 3,653 — — 3,653 
Exchangeable securities— — 739 — — 739 
(1)    Includes cash equivalents of nil.
(2)    Included in other assets. Refer to Note 23.
(3)    Includes current portion.
Carrying value as at Dec. 31, 2021Derivatives
used for
hedging		Derivatives
held for
trading (FVTPL)		Amortized costTotal
Financial assets    
Cash and cash equivalents(1)
— — 947 947 
Restricted cash— — 70 70 
Trade and other receivables— — 651 651 
Long-term portion of finance lease receivables— — 185 185 
Risk management assets
Current36 272 — 308 
Long-term252 147 — 399 
Financial liabilities
Accounts payable and accrued liabilities— — 689 689 
Dividends payable— — 62 62 
Risk management liabilities
Current— 261 — 261 
Long-term— 145 — 145 
Credit facilities, long-term debt and lease liabilities(2)
— — 3,267 3,267 
Exchangeable securities— — 735 735 
(1)    Includes cash equivalents of nil.
(2)    Includes current portion.
Disclosure of financial liabilities The following table outlines the carrying amounts and classifications of the financial assets and liabilities:
Carrying value as at Dec. 31, 2022Derivatives
used for
hedging		Derivatives
held for
trading (FVTPL)		Amortized costOther financial assets (FVTPL)Other financial assets (FVTOCI)Total
Financial assets    
Cash and cash equivalents(1)
— — 1,134 — — 1,134 
Restricted cash— — 70 — — 70 
Trade and other receivables— — 1,589 — — 1,589 
Long-term portion of finance lease receivables— — 129 — — 129 
Long-term portion of loan receivable(2)
— — 33 — — 33 
Other investments— — — 11 1 12 
Risk management assets    
Current— 709 — — — 709 
Long-term— 161 — — — 161 
Financial liabilities    
Bank overdraft— — 16 — — 16 
Accounts payable and accrued liabilities— — 1,346 — — 1,346 
Dividends payable— — 68 — — 68 
Risk management liabilities    
Current271 858 — — — 1,129 
Long-term76 257 — — — 333 
Credit facilities, long-term debt and lease
  liabilities(3)
— — 3,653 — — 3,653 
Exchangeable securities— — 739 — — 739 
(1)    Includes cash equivalents of nil.
(2)    Included in other assets. Refer to Note 23.
(3)    Includes current portion.
Carrying value as at Dec. 31, 2021Derivatives
used for
hedging		Derivatives
held for
trading (FVTPL)		Amortized costTotal
Financial assets    
Cash and cash equivalents(1)
— — 947 947 
Restricted cash— — 70 70 
Trade and other receivables— — 651 651 
Long-term portion of finance lease receivables— — 185 185 
Risk management assets
Current36 272 — 308 
Long-term252 147 — 399 
Financial liabilities
Accounts payable and accrued liabilities— — 689 689 
Dividends payable— — 62 62 
Risk management liabilities
Current— 261 — 261 
Long-term— 145 — 145 
Credit facilities, long-term debt and lease liabilities(2)
— — 3,267 3,267 
Exchangeable securities— — 735 735 
(1)    Includes cash equivalents of nil.
(2)    Includes current portion.
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments
The following table summarizes the key factors impacting the fair value of the Level III commodity risk management assets and liabilities by classification during the years ended Dec. 31, 2022 and 2021, respectively:
Year ended Dec. 31, 2022Year ended Dec. 31, 2021
HedgeNon-hedgeTotalHedgeNon-hedgeTotal
Opening balance285 (126)159 573 9 582 
Changes attributable to:
Market price changes on existing contracts(611)(298)(909)(181)4 (177)
Market price changes on new contracts— (124)(124)— (134)(134)
Contracts settled(38)118 80 (107)(5)(112)
Change in foreign exchange rates17 (5)12 — — — 
Net risk management assets (liabilities) at end of year(347)(435)(782)285 (126)159 
Additional Level III information:
Losses recognized in other comprehensive loss(594)— (594)(181)— (181)
Total gains (losses) included in earnings (loss) before income taxes38 (427)(389)107 (130)(23)
Unrealized gains (losses) included in earnings (loss) before income taxes relating to net assets held at year end— (309)(309)— (135)(135)
Disclosure for sensitivity ranges for the base fair value
As atDec. 31, 2022
DescriptionSensitivityValuation techniqueUnobservable inputReasonably possible change
Long-term power
   sale – US
+15
Long-term price forecastIlliquid future power prices (per MWh)
Price decrease of US$5 or price increase of US$55
-163
Coal
  transportation –
  US
+14
Numerical derivative valuationIlliquid future power prices (per MWh)
Price decrease of US$5 or price increase of US$55
Volatility
80% to 120%
-13
Rail rate escalation
zero to 10%
Full requirements
   – Eastern US
+3
Scenario analysis(1)
Volume
96% to 104%
-21
Cost of supply
Decrease of $0.50 per MWh or increase of $3.30 per MWh
Long-term wind
  energy sale –
  Eastern US
+22
Long-term price forecastIlliquid future power prices (per MWh)
Price decrease or increase of US$6
-18
Illiquid future REC prices (per unit)
Price decrease or increase of US$2
Wind discounts
0% decrease or 5% increase
Long-term wind
  energy sale –
  Canada		+47Long-term price forecastIlliquid future power prices (per MWh)
Price decrease of C$85 or increase of C$5
-25 Wind discounts
 28% decrease or 5% increase
Long-term wind
  energy sale -
  Central US		+74 Long-term price forecastIlliquid future power prices (per MWh)
Price decrease or increase of US$2
-28 Wind discounts
2% decrease or 5% increase
Others
+18
-19
(1)    The valuation technique for Full requirements - Eastern US was updated to scenario analysis to provide a more representative description and did not result in changes to the value.
As atDec. 31, 2021
DescriptionSensitivityValuation techniqueUnobservable inputReasonably possible change
Long-term power
   sale – US
+22
Long-term price forecastIlliquid future power prices (per MWh)
Price decrease of US$3 or a price increase of US$20
-145
Coal
  transportation –
   US
+3
Numerical derivative valuationIlliquid future power prices (per MWh)
Price decrease of US$3 or a price increase of US$20
Volatility
80% to 120%
-18
Rail rate escalation
zero to 4%
Full requirements – Eastern US
+9
Historical BootstrapVolume
95% to 105%
-9
Cost of supply
(+/-) US$1 per MWh
Long-term wind
  energy sale –
  Eastern US
+17
Long-term price forecastIlliquid future power prices (per MWh)
Price increase or decrease of US$6
-16
Illiquid future REC prices (per unit)
Price decrease US$3 or increase of US$2
Long-term wind
  energy sale –
  Canada
+21
Long-term price forecastIlliquid future power prices (per MWh)
Price decrease of C$24 or increase of C$5
-11
Wind discounts
5% decrease or 5% increase
Long-term wind
  energy sale –
  Central US
+27
Long-term price forecastIlliquid future power prices (per MWh)
Price decrease of US$2 or increase of US$3
-15
Wind discounts
3% decrease or 3% increase
Others
+6
-6
Disclosure of fair value measurement of liabilities
The fair value of financial assets and liabilities measured at other than fair value is as follows:
 
Fair value(1)
Total
carrying value(1)
 Level ILevel IILevel IIITotal
Exchangeable securities — Dec. 31, 2022— 685 — 685 739 
Long-term debt — Dec. 31, 2022— 3,200 — 3,200 3,518 
Loan receivable — Dec. 31, 2022— 37 — 37 37 
Exchangeable securities — Dec. 31, 2021— 770 — 770 735 
Long-term debt — Dec. 31, 2021— 3,272 — 3,272 3,167 
Loan receivable — Dec. 31, 2021— 55 — 55 55 
(1)    Includes current portion.
Disclosure of difference between transaction price and the fair value determined using valuation model The difference between the transaction price and the fair value determined using a valuation model, yet to be recognized in net earnings (loss) and a reconciliation of changes is as follows:
As at Dec. 31202220212020
Unamortized net gain (loss) at beginning of year(1)
(131)(33)9 
New inception loss(2)
(37)(79)(13)
Change in foreign exchange rates(10)— — 
Amortization recorded in net earnings during the year(35)(19)(29)
Unamortized net loss at end of year(213)(131)(33)
(1)    In 2022, the day one valuation of certain PPAs in 2021 was revised for consistency with other fair value calculations. The reconciliation for the 2021 comparative period was restated. This did not impact the prior year financial statements as the inception completely offset the fair value at Dec. 31, 2021.
(2)    During 2022, the Company entered into a PPA for the Horizon Hill wind project (2021 – PPAs for the White Rock wind project) that resulted in a new inception loss due to the difference between the fixed PPA price and future estimated market prices. There are other key factors, such as project economics and incentives, that influence the long-term power price for renewable projects outside of the power price curve, which is not liquid for the majority of the duration of the PPA. During 2020, the Company entered into a coal rail transportation agreement that includes an upside sharing mechanism. Option pricing techniques have been utilized to value the obligation associated with this component of the deal.