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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

—

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