XML 91 R58.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Risk Management Activities (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2023
Financial Instruments [Abstract] |
Disclosure of derivative Financial Instruments | Net Risk Management Assets and Liabilities Aggregate net risk management assets (liabilities) are as follows:
As at Dec. 31, 2023 |  |  |  |
| Cash flow hedges |  | Not designated as a hedge | Total
Commodity risk management |  |  |  |
Current | (125) |  |  | (53) |  | (178) |
Long-term | (80) |  |  | (146) |  | (226) |
Net commodity risk management liabilities | (205) |  |  | (199) |  | (404) |
Other |  |  |  |
Current | — |  |  | 15 |  | 15 |
Long-term | — |  |  | 4 |  | 4 |
Net other risk management assets | — |  |  | 19 |  | 19 |
Total net risk management liabilities | (205) |  |  | (180) |  | (385) |
As at Dec. 31, 2022 |  |  |  |
| Cash flow hedges |  | Not designated as a hedge | Total
Commodity risk management |  |  |  |
Current | (271) |  |  | (143) |  | (414) |
Long-term | (76) |  |  | (96) |  | (172) |
Net commodity risk management liabilities | (347) |  |  | (239) |  | (586) |
Other |  |  |  |
Current | — |  |  | (6) |  | (6) |
Long-term | — |  |  | — |  | — |
Net other risk management liabilities | — |  |  | (6) |  | (6) |
Total net risk management liabilities | (347) |  |  | (245) |  | (592) |
The Company’s outstanding commodity derivative instruments not designated as hedging instruments are as follows:
As at Dec. 31 | 2023 | 2022
Type (thousands) | Notional amount sold | Notional amount purchased | Notional amount sold | Notional amount purchased
Electricity (MWh) | 54,043 |  | 12,628 |  | 55,821 |  | 13,934 |
Natural gas (GJ) | 50,949 |  | 209,348 |  | 23,464 |  | 162,384 |
Transmission (MWh) | — |  | 856 |  | — |  | 1,643 |
Emissions (MWh) | 212 |  | 804 |  | 274 |  | 2,297 |
Emissions (tonnes) | 4,450 |  | 5,125 |  | 300 |  | 300 |
Coal (tonnes) | — |  | 5,172 |  | — |  | 7,746 |
As at Dec. 31 | 2023 | 2022
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
AUD125 |  | CAD113 |  | (1) |  | 2024-2027 | AUD183 |  | CAD168 |  | (1) |  | 2023-2026
USD828 |  | CAD1,113 |  | 19 |  | 2024-2027 | USD573 |  | CAD761 |  | (12) |  | 2023-2025
USD100 |  | AUD152 |  | 5 |  | 2024 | USD66 |  | AUD102 |  | 4 |  | 2023
Foreign exchange forward contracts – foreign-denominated debt
CAD190 |  | USD140 |  | (4) |  | 2024 |  | CAD159 |  | USD120 |  | 3 |  | 2023
Disclosure of net Arrangements | Information about the Company’s financial assets and liabilities that are subject to enforceable master netting arrangements or similar agreements is as follows:
As at Dec. 31, 2023 | Gross amounts of recognized financial assets (liabilities) | Amounts set off | Net amounts included on the statement of financial position | Master netting arrangements(1) | Net amount |  |  |
Current risk management assets | 528 |  | (355) |  | 173 |  | (7) |  | 166 |  |  |  |
Long-term risk management assets | 161 |  | (91) |  | 70 |  | (2) |  | 68 |  |  |  |
Current risk management liabilities | (504) |  | 355 |  | (149) |  | 7 |  | (142) |  |  |  |
Long-term risk management liabilities | (145) |  | 91 |  | (54) |  | 2 |  | (52) |  |  |  |
Trade and other receivables(2) | 789 |  | (646) |  | 143 |  | (11) |  | 132 |  |  |  |
Accounts payable and accrued liabilities(2) | (760) |  | 646 |  | (114) |  | 11 |  | (103) |  |  |  |
As at Dec. 31, 2022 | Gross amounts of recognized financial assets (liabilities) | Amounts set off | Net amounts included on the statement of financial position | Master netting arrangements(1) | Net amount
Current risk management assets | 1,602 |  | (883) |  | 719 |  | (62) |  | 657 |
Long-term risk management assets | 204 |  | (43) |  | 161 |  | (7) |  | 154 |
Current risk management liabilities | (1,953) |  | 883 |  | (1,070) |  | 62 |  | (1,008) |
Long-term risk management liabilities | (449) |  | 43 |  | (406) |  | 7 |  | (399) |
Trade and other receivables(2) | 1,330 |  | (934) |  | 396 |  | (176) |  | 220 |
Accounts payable and accrued liabilities(2) | (1,344) |  | 934 |  | (410) |  | 176 |  | (234) |
(1)Amounts not set off in the Consolidated Statements of Financial Position. (2)The trade and other receivables and accounts payable and accrued liabilities include amounts related to collateral provided and held. Refer to Note 15(F) below for further details.
Disclosure of 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 Company’s functional currency, is outlined below. The sensitivity analysis has been prepared using management’s assessment that an average three cents (2022 – three cents, 2021 – three cents) increase or decrease in these currencies relative to the Canadian dollar is a reasonable potential change over the next quarter.
Year ended Dec. 31 | 2023 | 2022 | 2021
Currency | Net earnings decrease(1) | OCI gain(1)(2) | Net earnings increase (decrease)(1) | OCI gain(1)(2) | Net earnings decrease(1) | OCI gain(1)(2)
USD | (11) |  | — |  | (12) |  | — |  | (13) |  | 1 |
AUD | (3) |  | — |  | (2) |  | — |  | 1 |  | — |
Total | (14) |  | — |  | (14) |  | — |  | (12) |  | 1 |
(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.
Disclosure of credit Risk | The following table outlines the Company’s maximum exposure to credit risk without taking into account collateral held, including the distribution of credit ratings, as at Dec. 31, 2023:
| Investment grade (per cent) | Non-investment grade (per cent) | Total (per cent) | Total amount
Trade and other receivables(1) | 95 |  | 5 |  | 100 |  | 807 |
Long-term finance lease receivable | 100 |  | — |  | 100 |  | 171 |
Risk management assets(1) | 75 |  | 25 |  | 100 |  | 203 |
Loans receivable(2) | — |  | 100 |  | 100 |  | 26 |
Total |  |  |  | 1,207 |
(1)Letters of credit and cash and cash equivalents are the primary types of collateral held as security related to these amounts. (2)Includes $26 million loans receivable included within other assets with counterparties that have no external credit rating.
Disclosure of maturity Analysis of Financial Liabilities | A maturity analysis of the Company's financial liabilities is as follows:
| 2024 | 2025 | 2026 | 2027 | 2028 | 2029 and thereafter | Total
Bank overdraft | 3 |  | — |  | — |  | — |  | — |  | — |  | 3 |
Accounts payable and accrued liabilities | 797 |  | — |  | — |  | — |  | — |  | — |  | 797 |
Long-term debt(1) |  |  |  |  |  |  |
Credit facilities(1) | 400 |  | — |  | — |  | — |  | — |  | — |  | 400 |
Debentures | — |  | — |  | — |  | — |  | — |  | 251 |  | 251 |
Senior notes | — |  | — |  | — |  | — |  | — |  | 924 |  | 924 |
Non-recourse – Hydro | — |  | — |  | — |  | — |  | — |  | 39 |  | 39 |
Non-recourse – Wind & Solar | 66 |  | 69 |  | 67 |  | 70 |  | 75 |  | 289 |  | 636 |
Non-recourse and other – Gas | 46 |  | 58 |  | 61 |  | 65 |  | 66 |  | 707 |  | 1,003 |
Tax equity financing | 14 |  | 15 |  | 15 |  | 18 |  | 21 |  | 27 |  | 110 |
Exchangeable securities(2) | — |  | — |  | — |  | — |  | — |  | 750 |  | 750 |
Commodity risk management liabilities | 169 |  | 123 |  | 15 |  | 12 |  | 12 |  | 73 |  | 404 |
Other risk management assets | (16) |  | (3) |  | — |  | — |  | — |  | — |  | (19) |
Lease liabilities(3) | 4 |  | 4 |  | 4 |  | 4 |  | 4 |  | 123 |  | 143 |
Interest on long-term debt and lease liabilities(4) | 186 |  | 167 |  | 158 |  | 151 |  | 143 |  | 711 |  | 1,516 |
Interest on exchangeable securities(2)(4) | 53 |  | 53 |  | 53 |  | 53 |  | 53 |  | 13 |  | 278 |
Dividends payable | 49 |  | — |  | — |  | — |  | — |  | — |  | 49 |
Total | 1,771 |  | 486 |  | 373 |  | 373 |  | 374 |  | 3,907 |  | 7,284 |
(1)Excludes impact of hedge accounting and derivatives. (2)Cash payment could occur after Dec. 31, 2028 if exchangeable securities are not exchanged by Brookfield Renewable Partners or its affiliates (collectively "Brookfield"). At Brookfield's option, the exchangeable securities can be exchanged, at the earliest, on Jan. 1, 2025 (Note 25). (3)Lease liabilities exclude a lease incentive of $12 million expected to be received in 2024, which is recognized in trade and other receivables. (4)Not recognized as a financial liability on the Consolidated Statements of Financial Position The following table outlines the terms and conditions of derivative hedging instruments and how they affect the amount, timing and uncertainty of future cash flows:
| Maturity
| 2024 | 2025 | 2026 | 2027 | 2028 | 2029
Cash flow hedges |  |  |  |  |  |
Commodity derivative instruments |  |  |  |  |  |
Electricity |  |  |  |  |  |
Notional amount (thousands of MWh) | 3,338 |  | 2,628 |  | — |  | — |  | — |  | — |
Average price ($ per MWh) | 78.18 |  | 80.13 |  | — |  | — |  | — |  | — |
Disclosure of hedging Instruments | The impact of the hedging instruments on the statement of financial position is as follows:
As at Dec. 31, 2023 | Notional amount | Carrying amount | Line item in the statement of financial position | Change in fair value used for measuring ineffectiveness
Commodity price risk |  |  |  |
Cash flow hedges |  |  |  |
Physical power sales(1) | 5,966 |  | (205) |  | Risk management liabilities | (114) |
Foreign currency risk |  |  |  |
Net investment hedges |  |  |  |
Foreign-denominated debt | USD370 |  | CAD489 |  | Credit facilities, long-term debt and lease liabilities | — |
(1)In thousands of MWh.
As at Dec. 31, 2022 | Notional amount | Carrying amount | Line item in the statement of financial position | Change in fair value used for measuring ineffectiveness
Commodity price risk |  |  |  |
Cash flow hedges |  |  |  |
Physical power sales(1) | 9,295 |  | (347) |  | Risk management liabilities | (594) |
Foreign currency risk |  |  |  |
Net investment hedges |  |  |  |
Foreign-denominated debt | USD370 |  | CAD502 |  | Credit facilities, long-term debt and lease liabilities | — |
(1)In thousands of MWh. The impact of the hedged items on the statement of financial position is as follows:
As at Dec. 31 | 2023 |  | 2022
Change in fair value used for measuring ineffectiveness | Cash flow hedge reserve(1) |  | Change in fair value used for measuring ineffectiveness | Cash flow hedge reserve(1)
Commodity price risk |  |  |  |  |
Cash flow hedges |  |  |  |  |
Power forecast sales – Centralia | (114) |  | (129) |  |  | (594) |  | (279) |
| Change in fair value used for measuring ineffectiveness | Foreign currency translation reserve(1) |  | Change in fair value used for measuring ineffectiveness | Foreign currency translation reserve(1)
Foreign currency risk |  |  |  |  |
Net investment hedges |  |  |  |  |
Net investment in foreign subsidiaries | — |  | (36) |  |  | — |  | (39) |
(1)Net of tax. Included in AOCI.
Disclosure of effect of Hedges | The impact of designated cash flow hedges on OCI and net earnings is:
Year ended Dec. 31, 2023
|  | Effective portion |  | Ineffective portion |
Derivatives in cash flow hedging relationships | Pre-tax gain recognized in OCI | Location of gain 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 | 51 |  | Revenue | 83 |  | Revenue | — |
Forward starting interest rate swaps | — |  | Interest expense | (8) |  | Interest expense | — |
OCI impact | 51 |  | OCI impact | 75 |  | Net earnings impact | — |
These estimates assume constant natural gas and power prices, interest rates and exchange rates over time; however, the actual amounts that will be reclassified may vary based on changes in these factors.
Year ended Dec. 31, 2022
|  |  |  | 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 |  | (747) |  |  | Revenue |  | 124 |  |  | Revenue |  | — |
Forward starting interest rate swaps |  | 53 |  |  | Interest expense |  | 2 |  |  | Interest expense |  | — |
OCI impact |  | (694) |  |  | OCI impact |  | 126 |  |  | Net earnings impact |  | — |
Year ended Dec. 31, 2021
|  |  | 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 | (268) |  |  | Revenue |  | (13) |  |  | Revenue |  | — |
Foreign exchange forwards on project hedges | — |  |  | Property, plant and equipment |  | 1 |  |  | Foreign exchange (gain) loss |  | — |
Forward starting interest rate swaps | 13 |  |  | Interest expense |  | 4 |  |  | Interest expense |  | — |
OCI impact | (255) |  |  | OCI impact |  | (8) |  |  | Net earnings impact |  | — |

X
- Definition The disclosure of credit risk. [Refer: Credit risk [member]] + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Name IAS -Number 1 -IssueDate 2023-01-01 -Paragraph 10 -Subparagraph e -URI https://taxonomy.ifrs.org/xifrs-link?type=IAS&num=1&code=ifrs-tx-2023-en-r&anchor=para_10_e&doctype=Standard -URIDate 2023-03-23 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 7 -IssueDate 2023-01-01 -Section Credit risk -URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=7&code=ifrs-tx-2023-en-r&doctype=Standard&dita_xref=IFRS07_g35A-38_TI -URIDate 2023-03-23 + Details
Name: | ifrs-full_DisclosureOfCreditRiskExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The disclosure of derivative financial instruments. [Refer: Derivatives [member]] + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Name IAS -Number 1 -IssueDate 2023-01-01 -Paragraph 10 -Subparagraph e -URI https://taxonomy.ifrs.org/xifrs-link?type=IAS&num=1&code=ifrs-tx-2023-en-r&anchor=para_10_e&doctype=Standard -URIDate 2023-03-23 + Details
Name: | ifrs-full_DisclosureOfDerivativeFinancialInstrumentsExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The disclosure of detailed information about hedged items. [Refer: Hedged items [member]] + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 7 -IssueDate 2023-01-01 -Paragraph 24B -URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=7&code=ifrs-tx-2023-en-r&anchor=para_24B&doctype=Standard -URIDate 2023-03-23 + Details
Name: | ifrs-full_DisclosureOfDetailedInformationAboutHedgedItemsExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The disclosure of detailed information about hedging instruments. [Refer: Hedging instruments [member]] + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 7 -IssueDate 2023-01-01 -Paragraph 24A -URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=7&code=ifrs-tx-2023-en-r&anchor=para_24A&doctype=Standard -URIDate 2023-03-23 + Details
Name: | ifrs-full_DisclosureOfDetailedInformationAboutHedgingInstrumentsExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The disclosure of the offsetting of financial assets and financial liabilities. [Refer: Financial assets; Financial liabilities] + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 7 -IssueDate 2023-01-01 -Section Offsetting financial assets and financial liabilities -URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=7&code=ifrs-tx-2023-en-r&doctype=Standard&dita_xref=IFRS07_g13A-13F_TI -URIDate 2023-03-23 + Details
Name: | ifrs-full_DisclosureOfOffsettingOfFinancialAssetsAndFinancialLiabilitiesExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The disclosure of a maturity analysis for derivative financial liabilities, including the remaining contractual maturities for those derivative financial liabilities for which contractual maturities are essential for an understanding of the timing of the cash flows. [Refer: Derivative financial liabilities] + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 7 -IssueDate 2023-01-01 -Paragraph 39 -Subparagraph b -URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=7&code=ifrs-tx-2023-en-r&anchor=para_39_b&doctype=Standard -URIDate 2023-03-23 + Details
Name: | ifrs-full_MaturityAnalysisForDerivativeFinancialLiabilities
Namespace Prefix: | ifrs-full_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The disclosure of the sensitivity analysis for types of market risk to which the entity is exposed, showing how profit or loss and equity would have been affected by changes in the relevant risk variable that were reasonably possible at that date. [Refer: Market risk [member]] + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 7 -IssueDate 2023-01-01 -Paragraph 40 -Subparagraph a -URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=7&code=ifrs-tx-2023-en-r&anchor=para_40_a&doctype=Standard -URIDate 2023-03-23 + Details
Name: | ifrs-full_SensitivityAnalysisForEachTypeOfMarketRisk
Namespace Prefix: | ifrs-full_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Financial Instruments [Abstract] + References No definition available. + Details
Name: | tac_FinancialInstrumentsAbstract
Namespace Prefix: | tac_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration