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Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2023

Disclosure of detailed information about financial instruments [abstract]

Financial assets and financial liabilities are measured on an ongoing basis at cost, fair value or amortized cost.


Carrying value as at Dec. 31, 2023	Derivatives used for hedging	Derivatives held for trading (FVTPL)	Amortized cost	Other financial assets (FVTPL)	Other financial assets (FVOCI)	Total
Financial assets
Cash and cash equivalents(1)	—	—	348	—	—	348
Restricted cash	—	—	69	—	—	69
Trade and other receivables	—	—	807	—	—	807
Long-term portion of finance lease receivables	—	—	171	—	—	171
Long-term portion of loan receivable(2)	—	—	25	—	—	25
Other investments(3)	—	—	—	15	1	16
Risk management assets
Current	—	151	—	—	—	151
Long-term	—	52	—	—	—	52
Financial liabilities
Bank overdraft	—	—	3	—	—	3
Accounts payable and accrued liabilities	—	—	797	—	—	797
Dividends payable	—	—	49	—	—	49
Risk management liabilities
Current	125	189	—	—	—	314
Long-term	80	194	—	—	—	274
Credit facilities, long-term debt and lease liabilities(4)	—	—	3,466	—	—	3,466
Exchangeable securities	—	—	744	—	—	744

(1)Includes cash equivalents of nil.

(2)Included in other assets. Refer to Note 22.

(3)Included in investments. Refer to Note 9.

(4)Includes current portion.


Carrying value as at Dec. 31, 2022	Derivatives used for hedging	Derivatives held for trading (FVTPL)	Amortized cost	Other 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(3)	—	—	—	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
Current	271	858	—	—	—	1,129
Long-term	76	257	—	—	—	333
Credit facilities, long-term debt and lease liabilities(4)	—	—	3,653	—	—	3,653
Exchangeable securities	—	—	739	—	—	739

(1)Includes cash equivalents of nil.

(2)Included in other assets. Refer to Note 22.

(3)Included in investments. Refer to Note 9.

(4)Includes current portion.

Disclosure of financial liabilities

Financial assets and financial liabilities are measured on an ongoing basis at cost, fair value or amortized cost.


Carrying value as at Dec. 31, 2023	Derivatives used for hedging	Derivatives held for trading (FVTPL)	Amortized cost	Other financial assets (FVTPL)	Other financial assets (FVOCI)	Total
Financial assets
Cash and cash equivalents(1)	—	—	348	—	—	348
Restricted cash	—	—	69	—	—	69
Trade and other receivables	—	—	807	—	—	807
Long-term portion of finance lease receivables	—	—	171	—	—	171
Long-term portion of loan receivable(2)	—	—	25	—	—	25
Other investments(3)	—	—	—	15	1	16
Risk management assets
Current	—	151	—	—	—	151
Long-term	—	52	—	—	—	52
Financial liabilities
Bank overdraft	—	—	3	—	—	3
Accounts payable and accrued liabilities	—	—	797	—	—	797
Dividends payable	—	—	49	—	—	49
Risk management liabilities
Current	125	189	—	—	—	314
Long-term	80	194	—	—	—	274
Credit facilities, long-term debt and lease liabilities(4)	—	—	3,466	—	—	3,466
Exchangeable securities	—	—	744	—	—	744

(1)Includes cash equivalents of nil.

(2)Included in other assets. Refer to Note 22.

(3)Included in investments. Refer to Note 9.

(4)Includes current portion.


Carrying value as at Dec. 31, 2022	Derivatives used for hedging	Derivatives held for trading (FVTPL)	Amortized cost	Other 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(3)	—	—	—	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
Current	271	858	—	—	—	1,129
Long-term	76	257	—	—	—	333
Credit facilities, long-term debt and lease liabilities(4)	—	—	3,653	—	—	3,653
Exchangeable securities	—	—	739	—	—	739

(1)Includes cash equivalents of nil.

(2)Included in other assets. Refer to Note 22.

(3)Included in investments. Refer to Note 9.

(4)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, 2023 and 2022, respectively:


	Year ended Dec. 31, 2023			Year ended Dec. 31, 2022
	Hedge	Non-hedge	Total	Hedge	Non-hedge	Total
Opening balance	(347)	(435)	(782)	285	(126)	159
Changes attributable to:
Market price changes on existing contracts	(123)	(6)	(129)	(611)	(298)	(909)
Market price changes on new contracts	—	18	18	—	(124)	(124)
Contracts settled	256	269	525	(38)	118	80
Change in foreign exchange rates	9	7	16	17	(5)	12
Transfers out of Level III(1)	205	—	205	—	—	—
Net risk management assets (liabilities) at end of year	—	(147)	(147)	(347)	(435)	(782)
Additional Level III information:
Losses recognized in other comprehensive loss	(114)	—	(114)	(594)	—	(594)
Total gains (losses) included in earnings before income taxes	(256)	19	(237)	38	(427)	(389)
Unrealized gains (losses) included in earnings before income taxes relating to net assets (liabilities) held at year end	—	288	288	—	(309)	(309)

(1)The Company has a long-term fixed price power sale contract in the US for delivery of power. The fair value of this instrument was transferred out of Level III to Level II as at Dec. 31, 2023 as the forward price curve is now based on observable market prices for the remaining duration of the contract.

Disclosure for sensitivity ranges for the base fair value

As at

Dec. 31, 2023

Description

Valuation technique

Unobservable input

Reasonably possible change

Sensitivity(1)

Coal transportation – US

Numerical
derivative valuation

Volatility

80% to 120%

Rail rate escalation

zero to 10%

-4

Full requirements – Eastern US

Scenario analysis

Volume

96% to 104%

Cost of supply

Decrease of $2.30 per MWh

or increase of $2.40 per MWh

-3

Long-term wind energy sale – Eastern US

Long-term price forecast

Illiquid future power prices (per MWh)

Price decrease

or increase of US$6

+24

Illiquid future REC prices (per unit)

Price decrease of US$12

or increase of US$8

Wind discounts

0% decrease or 9% increase

-28

Long-term wind energy sale – Canada

Long-term price forecast

Illiquid future power prices (per MWh)

Price decrease of C$81

or increase of C$5

+65

Wind discounts

16% decrease or 5% increase

-23

Long-term wind energy sale - Central US

Long-term price forecast

Illiquid future power prices (per MWh)

Price decrease of US$1

or increase of US$2

+81

Wind discounts

5% decrease or 2% increase

-36

(1)Sensitivity represents the total increase or decrease in recognized fair value that could arise from the use of the reasonably possible changes of all unobservable inputs.

As at

Dec. 31, 2022

Description

Valuation
technique

Unobservable input

Reasonably possible change

Sensitivity(1)

Coal transportation – US

Numerical derivative valuation

Illiquid future power prices (per MWh)

Price decrease of US$5

or increase of US$55

+14

Volatility

80% to 120%

Rail rate escalation

zero to 10%

-13

Full requirements - Eastern US

Scenario analysis

Volume

96% to 104%

Cost of supply

Decrease of US$0.50 per MWh

or increase of US$3.30 per MWh

-21

Long-term wind energy sale – Eastern US

Long-term price forecast

Illiquid future power prices (per MWh)

Price decrease

or increase of US$6

+22

Illiquid future REC prices (per unit)

Price decrease

or increase of US$2

Wind discounts

0% decrease or 5% increase

-18

Long-term wind energy sale – Canada

Long-term price forecast

Illiquid future power prices (per MWh)

Price decrease of C$85

or increase of C$5

+47

Wind discounts

28% decrease or 5% increase

-25

Long-term wind energy sale – Central US

Long-term price forecast

Illiquid future power prices (per MWh)

Price decrease

or increase of US$2

+74

Wind discounts

2% decrease or 5% increase

-28

Long-term power
sale – US

Long-term price forecast

Illiquid future power prices (per MWh)

Price decrease of US$5

or increase of US$55

+15

-163

(1)Sensitivity represents the total increase or decrease in recognized fair value that would arise from the use of the reasonably possible changes of all unobservable inputs.

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 I	Level II	Level III	Total
Exchangeable securities — Dec. 31, 2023	—	718	—	718	744
Long-term debt — Dec. 31, 2023	—	3,104	—	3,104	3,323
Loan receivable — Dec. 31, 2023	—	26	—	26	26
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

(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. 31	2023	2022	2021
Unamortized net loss at beginning of year	(213)	(131)	(33)
New inception gains (losses)(1)	47	(37)	(79)
Change resulting from amended contract(2)	190	—	—

Change in foreign exchange rates	6	(10)	—
Amortization recorded in net earnings during the year	(27)	(35)	(19)
Unamortized net gain (loss) at end of year	3	(213)	(131)

(1)During 2023, the Company entered into long-term fixed price power sale contracts with certain of its US customers and as a result recognized day one inception gains that are based on the forward price curve at the inception of the contract. During 2022, the Company entered into a PPA for the Horizon Hill wind project (2021 – PPAs for the White Rock wind projects) that resulted in new inception losses 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.

(2)During 2023, the Company entered into certain contract amendments related to the Horizon Hill and White Rock wind projects. These amendments were mainly specific to obtaining price increases over the contract term. Accordingly, certain inception loss calibration adjustments were recognized within the risk management liability.