Enhanced Investments - Financial Portal

Published: 2022-11-04



	ENBRIDGE INC.

		CONSOLIDATED FINANCIAL STATEMENTS

	(unaudited)

September 30, 2022

ENBRIDGE INC.
	CONSOLIDATED STATEMENTS OF EARNINGS
		Three months ended	Nine months ended
		September 30,	September 30,
				2022	2021	2022		2021
							(unaudited; mil ions of Canadian dol ars, except per share amounts)

							Operating revenues

							Commodity sales	6,415			7,279	22,880		20,042
							Gas distribution sales		695	492	3,698		2,769
							Transportation and other services	4,463			3,695	13,307		11,740
							Total operating revenues (Note 3)	11,573			11,466	39,885		34,551
							Operating expenses
							Commodity costs	6,300			7,347	22,772		19,975
							Gas distribution costs		330	120	2,242		1,359
							Operating and administrative	2,089			1,667	5,958		4,710
							Depreciation and amortization	1,076			944	3,195		2,805
							Total operating expenses	9,795			10,078	34,167		28,849
							Operating income	1,778			1,388	5,718		5,702
							Income from equity investments		536	440	1,537		1,187
							Impairment of equity investments		—	(111)			—	(111)
							Other income/(expense)
							Net foreign currency gain/(loss)	(1,023)			(165)	(1,235)		146
							Gain on joint venture merger transaction (Note 6)	1,076			—	1,076		—
							Other		140	109			311	300
							Interest expense		(806)	(648)	(2,316)		(1,923)
							Earnings before income taxes	1,701			1,013	5,091		5,301
							Income tax expense		(318)	(199)	(1,044)		(952)
							Earnings	1,383			814	4,047		4,349
							Earnings attributable to noncontrol ing interests		(21)	(34)			(61)	(93)
							Earnings attributable to control ing interests	1,362			780	3,986		4,256
							Preference share dividends		(83)	(98)	(330)		(280)
							Earnings attributable to common shareholders	1,279			682	3,656		3,976
							Earnings per common share attributable to common
							shareholders (Note 5)		0.63	0.34	1.80		1.97
							Diluted earnings per common share attributable to
							common shareholders (Note 5)		0.63	0.34	1.80		1.96
							The accompanying notes are an integral part of these interim consolidated financial statements.
										1

ENBRIDGE INC.
	CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
		Three months ended	Nine months ended
		September 30,	September 30,
				2022	2021	2022			2021

	(unaudited; mil ions of Canadian dol ars)

	Earnings		1,383			814	4,047			4,349
	Other comprehensive income/(loss), net of tax
	Change in unrealized gain/(loss) on cash flow hedges			171	(16)			817	197
	Change in unrealized gain/(loss) on net investment
	hedges			(934)	(206)	(1,187)			16
	Other comprehensive loss from equity investees			(7)	(30)			(7)	(28)
	Excluded components of fair value hedges			(33)	(1)			(38)	(3)
	Reclassification to earnings of loss on cash flow
	hedges			36	55			145	168
	Reclassification to earnings of pension and other
	postretirement benefits (OPEB) amounts			(2)	5			(7)	16
	Reclassification to earnings of loss on equity investees			16	—			16	—
	Foreign currency translation adjustments		4,135			1,281	5,308			(350)
	Other comprehensive income, net of tax		3,382			1,088	5,047			16
	Comprehensive income		4,765			1,902	9,094			4,365
	Comprehensive income attributable to noncontrol ing
	interests			(116)	(62)	(187)			(68)
	Comprehensive income attributable to control ing
	interests		4,649			1,840	8,907			4,297
	Preference share dividends			(83)	(98)	(330)			(280)
	Comprehensive income attributable to common
	shareholders		4,566			1,742	8,577			4,017
	The accompanying notes are an integral part of these interim consolidated financial statements.
										2

ENBRIDGE INC.
	CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
		Three months ended	Nine months ended
		September 30,	September 30,
		2022			2021	2022			2021

				(unaudited; mil ions of Canadian dol ars, except per share amounts)
				Preference shares
	Balance at beginning of period		6,818			7,747	7,747			7,747
	Redemption of preference shares							—	—	(929)			—
				Balance at end of period		6,818			7,747	6,818			7,747
				Common shares
	Balance at beginning of period		64,755			64,780	64,799			64,768
	Shares issued on exercise of stock options							2	10		50	22
	Share purchases at stated value							—	—	(88)			—
	Other							—	—		(4)	—
				Balance at end of period		64,757			64,790	64,757			64,790
				Additional paid-in capital
	Balance at beginning of period		305			324	365			277
	Stock-based compensation							9	7				27	23
	Options exercised							(2)	(7)	(47)			(15)
	Change in reciprocal interest							—	—		—	39
	Other							—	—	(33)			—
				Balance at end of period		312			324	312			324
				Deficit
	Balance at beginning of period	(10,418)			(8,388) (10,989)	(9,995)
	Earnings attributable to control ing interests		1,362			780	3,986			4,256
	Preference share dividends							(83)	(98)	(330)			(280)
	Common share dividends declared		(1,741)			(1,692)	(3,484)			(3,384)
	Dividends paid to reciprocal shareholder							—	1				—	6
	Share purchases in excess of stated value							—	—	(63)			—
				Balance at end of period	(10,880)			(9,397) (10,880)	(9,397)
				Accumulated other comprehensive income/(loss) (Note 8)
	Balance at beginning of period		538			(2,420)	(1,096)			(1,401)
	Other comprehensive income attributable to common shareholders, net of tax		3,287			1,060	4,921			41
				Balance at end of period		3,825			(1,360)	3,825			(1,360)
				Reciprocal shareholding
	Balance at beginning of period							—	(17)		—	(29)
	Change in reciprocal interest							—	—		—	12
				Balance at end of period							—	(17)		—	(17)
				Total Enbridge Inc. shareholders’ equity		64,832			62,087	64,832			62,087
				Noncontrol ing interests
	Balance at beginning of period		2,539			2,870	2,542			2,996
	Earnings attributable to noncontrol ing interests							21	34		61	93
	Other comprehensive income/(loss) attributable to noncontrol ing interests, net
	of taxChange in unrealized loss on cash flow hedges
								(8)	(9)	(14)			(15)
	Foreign currency translation adjustments		103			37	140			(10)
								95	28	126			(25)

	Comprehensive income attributable to noncontrol ing interests		116			62	187			68
	Distributions							(62)	(67)	(189)			(210)
	Contributions							2	4				10	13
	Redemption of noncontrol ing interests							—	(293)		—	(293)
	Other							3	(1)		48	1
				Balance at end of period		2,598			2,575	2,598			2,575
				Total equity		67,430			64,662	67,430			64,662
				Dividends paid per common share		0.860			0.835	2.580			2.505
				The accompanying notes are an integral part of these interim consolidated financial statements.
									3

ENBRIDGE INC.
	CONSOLIDATED STATEMENTS OF CASH FLOWS
		Nine months ended
		September 30,
				2022		2021
			(unaudited; mil ions of Canadian dol ars)
			Operating activities
			Earnings		4,047		4,349
			Adjustments to reconcile earnings to net cash provided by operating activities:
			Depreciation and amortization		3,195		2,805
			Deferred income tax expense					600	789
			Unrealized derivative fair value loss, net (Note 9)		1,691		86
			Income from equity investments		(1,537)		(1,187)
			Distributions from equity investments		1,293		1,197
			Impairment of equity investments				—	111
			Gain on joint venture merger transaction (Note 6)		(1,076)		—
			Other				6	(128)
			Changes in operating assets and liabilities		(602)		(656)
			Net cash provided by operating activities		7,617		7,366
			Investing activities
			Capital expenditures		(3,204)		(5,887)
			Long-term investments and restricted long-term investments		(566)		(241)
			Distributions from equity investments in excess of cumulative earnings					426	295
			Additions to intangible assets		(131)		(185)
			Acquisition (Note 6)		(295)		—
			Proceeds from joint venture merger transaction (Note 6)					522	—
			Proceeds from disposition		—	122
			Affiliate loans, net				90	19
			Other				—	(30)
			Net cash used in investing activities		(3,158)		(5,907)
			Financing activities
			Net change in short-term borrowings					367	84
			Net change in commercial paper and credit facility draws					386	(32)
			Debenture and term note issues, net of issue costs		4,739		6,135
			Debenture and term note repayments		(2,244)		(1,888)
			Contributions from noncontrol ing interests				10	13
			Distributions to noncontrol ing interests		(189)		(210)
			Common shares issued				3	3
			Common shares repurchased		(151)		—
			Preference share dividends		(254)		(274)
			Common share dividends		(5,226)		(5,074)
			Redemption of preferred shares held by subsidiary				—	(115)
			Redemption of preference shares		(1,003)		—
			Other		(223)		(64)
			Net cash used in financing activities		(3,785)		(1,422)
			Effect of translation of foreign denominated cash and cash equivalents and
			restricted cash				63	(12)
			Net change in cash and cash equivalents and restricted cash					737	25
			Cash and cash equivalents and restricted cash at beginning of period					320	490
			Cash and cash equivalents and restricted cash at end of period		1,057		515
			The accompanying notes are an integral part of these interim consolidated financial statements.
							4

ENBRIDGE INC.
	CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
		September 30,		December 31,
			2022		2021
						(unaudited; mil ions of Canadian dol ars; number of shares in mil ions)
						Assets
						Current assets
	Cash and cash equivalents		1,021		286
	Restricted cash		36		34
	Accounts receivable and other		7,168		6,862
	Accounts receivable from affiliates		236		107
	Inventory		2,346		1,670
			10,807		8,959
						Property, plant and equipment, net		105,251	100,067
						Long-term investments		15,346	13,324
						Restricted long-term investments		569	630
						Deferred amounts and other assets		9,941	8,613
						Intangible assets, net		4,124	4,008
						Goodwil		35,274	32,775
						Deferred income taxes		463	488
						Total assets		181,775	168,864
						Liabilities and equity
						Current liabilities
	Short-term borrowings		1,882		1,515
	Accounts payable and other		8,867		9,767
	Accounts payable to affiliates		144		90
	Interest payable		641		693
	Current portion of long-term debt		6,376		6,164
			17,910		18,229
						Long-term debt		73,960	67,961
						Other long-term liabilities		9,133	7,617
						Deferred income taxes		13,342	11,689
			114,345		105,496
						Contingencies (Note 12)Equity

	Share capital
	Preference shares		6,818		7,747
	Common shares (2,025 and 2,026 outstanding at September 30, 2022 and
	December 31, 2021, respectively)		64,757		64,799
	Additional paid-in capital		312		365
	Deficit		(10,880)		(10,989)
	Accumulated other comprehensive income/(loss) (Note 8)		3,825		(1,096)
	Total Enbridge Inc. shareholders’ equity		64,832		60,826
	Noncontrol ing interests		2,598		2,542
			67,430		63,368
						Total liabilities and equity		181,775	168,864
						The accompanying notes are an integral part of these interim consolidated financial statements.
							5

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
	(unaudited)
1. BASIS OF PRESENTATION
The accompanying unaudited interim consolidated financial statements of Enbridge Inc. (“we”, “our”, “us” and “Enbridge”) have been prepared in accordance with general y accepted accounting principles in the United States of America (US GAAP) and Regulation S-X for interim consolidated financial information. They do not include al of the information and notes required by US GAAP for annual consolidated financial statements and should therefore be read in conjunction with our audited consolidated financial statements and notes for the year ended December 31, 2021. In the opinion of management, the interim consolidated financial statements contain al normal recurring adjustments necessary to present fairly our financial position, results of operations and cash flows for the interim periods reported. These interim consolidated financial statements fol ow the same significant accounting policies as those included in our audited consolidated financial statements for the year ended December 31, 2021, except for the adoption of new standards (Note 2). Amounts are stated in Canadian dol ars unless otherwise noted.
Our operations and earnings for interim periods can be affected by seasonal fluctuations within the gas distribution utility businesses, as wel as other factors such as supply of and demand for crude oil and natural gas, and may not be indicative of annual results.
Certain comparative figures in our interim consolidated financial statements have been reclassified to conform to the current year's presentation.
2. CHANGES IN ACCOUNTING POLICIES
ADOPTION OF NEW ACCOUNTING STANDARDSDisclosures About Government AssistanceEffective January 1, 2022, we adopted Accounting Standards Update (ASU) 2021-10 on a prospective basis. The new standard was issued in November 2021 to increase the transparency of government assistance to business entities. The ASU adds new disclosure requirements for transactions with governments that are accounted for using a grant or contribution accounting model by analogy. The required disclosures include information about the nature of transactions, accounting policy applied, impacted financial statement line items and significant terms and conditions. The adoption of this ASU did not have a material impact on our consolidated financial statements.
Accounting for Certain Lessor Leases with Variable Lease PaymentsEffective January 1, 2022, we adopted ASU 2021-05 on a prospective basis. The new standard was issued in July 2021 to amend lessor accounting for certain leases with variable lease payments that do not depend on a reference index or a rate and would have resulted in the recognition of a loss at lease commencement if classified as a sales-type or a direct financing lease. The ASU amends the classification requirements of such leases for lessors to result in an operating lease classification. The adoption of this ASU did not have a material impact on our consolidated financial statements.
Accounting for Modifications or Exchanges of Certain Equity-Classified ContractsEffective January 1, 2022, we adopted ASU 2021-04 on a prospective basis. The new standard was issued in May 2021 to clarify issuer accounting for modifications or exchanges of freestanding equity-classified written cal options that remain equity classified after modification or exchange. The ASU requires an issuer to determine the accounting for the modification or exchange based on the economic substance of the modification or exchange. The adoption of this ASU did not have a material impact on our consolidated financial statements.
		6

Accounting for Convertible Instruments and Contracts in an Entity’s Own EquityEffective January 1, 2022, we adopted ASU 2020-06 on a modified retrospective basis. The new standard was issued in August 2020 to simplify accounting for certain financial instruments. The ASU eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The ASU also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. The ASU amends the diluted earnings per share guidance, including the requirement to use if-converted method for al convertible instruments and an update for instruments that can be settled in either cash or shares. The adoption of this ASU did not have a material impact on our consolidated financial statements.
3. REVENUE
REVENUE FROM CONTRACTS WITH CUSTOMERSMajor Products and Services
		Gas		Gas
			Transmission		Distribution	Renewable
	Liquids	and		and		Power	Energy	Eliminations	Three months endedSeptember 30, 2022(mil ions of Canadian dol ars)
	Pipelines		Midstream	Storage		Generation	Services	and Other Consolidated

Transportation revenue		2,962	1,264		143					—	—	—	4,369
Storage and other revenue		58	91		63					—	—	—	212
Gas distribution revenue		—	—		699					—	—	—	699
Electricity and transmission
revenue		—	—		—					68	—	—	68
Total revenue from contracts with
customers		3,020	1,355		905					68	—	—	5,348
Commodity sales		—	—		—					—	6,415	—	6,415
Other revenue1,2		(258)	10		3					54	—	1	(190)
Intersegment revenue		137	1		1					(2)	4	(141)	—
Total revenue		2,899	1,366		909					120	6,419	(140)		11,573
		Gas		Gas
			Transmission		Distribution	Renewable
	Liquids	and		and		Power	Energy	Eliminations	Three months endedSeptember 30, 2021(mil ions of Canadian dol ars)
	Pipelines		Midstream	Storage		Generation	Services	and Other Consolidated

Transportation revenue		2,340	1,081		128					—	—	—	3,549
Storage and other revenue		33	58		50					—	—	—	141
Gas gathering and processing
revenue		—	15		—					—	—	—	15
Gas distribution revenue		—	—		496					—	—	—	496
Electricity and transmission
revenue		—	—		—					44	—	—	44
Total revenue from contracts with
customers		2,373	1,154		674					44	—	—	4,245
Commodity sales		—	—		—					—	7,279	—	7,279
Other revenue1,2		(143)	4		24					78	(1)	(20)	(58)
Intersegment revenue		140	1		(11)					—	12	(142)	—
Total revenue		2,370	1,159		687					122	7,290	(162)		11,466
					7

	Gas		Gas
		Transmission		Distribution	Renewable
Liquids	and		and		Power	Energy	Eliminations	Nine months endedSeptember 30, 2022(mil ions of Canadian dol ars)
PipelinesMidstreamStorage		Generation	Services	and Other Consolidated

								Transportation revenue	8,212	3,658	551	—	—	—		12,421
								Storage and other revenue	173	258	209	—	—	—	640
								Gas gathering and processing
								revenue	—	21	—	—	—	—	21
								Gas distribution revenue	—	—	3,716	—	—	—	3,716
								Electricity and transmission
								revenue	—	—	—	211	—	—	211
								Total revenue from contracts with
								customers	8,385	3,937	4,476	211	—	—		17,009
								Commodity sales	—	—	—	— 22,880	—	22,880
								Other revenue1,2	(225)	28	(30)	222	—	1	(4)
								Intersegment revenue	432	2	12	(2)	14	(458)	—
								Total revenue	8,592	3,967	4,458	431 22,894	(457)	39,885
	Gas		Gas
		Transmission		Distribution	Renewable
Liquids	and		and		Power	Energy	Eliminations	Nine months endedSeptember 30, 2021(mil ions of Canadian dol ars)
PipelinesMidstreamStorage		Generation	Services	and Other Consolidated

								Transportation revenue	6,826	3,248	494	—	—	—		10,568
								Storage and other revenue	96	195	159	—	—	—	450
								Gas gathering and processing
								revenue	—	32	—	—	—	—	32
								Gas distribution revenue	—	—	2,755	—	—	—	2,755
								Electricity and transmission
								revenue	—	—	—	125	—	—	125
								Total revenue from contracts with
								customers	6,922	3,475	3,408	125	—	—		13,930
								Commodity sales	—	—	—	— 20,042	—	20,042
								Other revenue1,2	284	25	42	246	—	(18)	579
								Intersegment revenue	410	1	13	—	26	(450)	—
								Total revenue	7,616	3,501	3,463	371 20,068	(468)	34,551
								1 Includes mark-to-market losses from our hedging program for the three months ended September 30, 2022 and 2021 of $345
								mil ion and $225 mil ion, respectively. For the nine months ended September 30, 2022 and 2021, Other revenue includes a $483 mil ion mark-to-market loss and a $36 mil ion mark-to-market gain, respectively.
								2 Includes revenues from lease contracts for the three months ended September 30, 2022 and 2021 of $128 mil ion and $140
								mil ion, respectively, and for the nine months ended September 30, 2022 and 2021 of $435 mil ion and $442 mil ion, respectively.
								We disaggregate revenues into categories which represent our principal performance obligations within each business segment. These revenue categories represent the most significant revenue streams in each segment and consequently are considered to be the most relevant revenue information for management to consider in evaluating performance.
				8

Contract Balances
	Contract	Contract	Contract
	Receivables	Assets	Liabilities
(mil ions of Canadian dol ars)Balance as at September 30, 2022
					2,307	233	2,201
Balance as at December 31, 2021					2,369	213	1,898
Contract receivables represent the amount of receivables derived from contracts with customers.
Contract assets represent the amount of revenues which have been recognized in advance of payments received for performance obligations we have fulfil ed (or partial y fulfil ed) and prior to the point in time at which our right to payment is unconditional. Amounts included in contract assets are transferred to accounts receivable when our right to receive the consideration becomes unconditional.
Contract liabilities represent payments received for performance obligations which have not been fulfil ed. Contract liabilities primarily relate to make-up rights and deferred revenues. Revenue recognized during the three and nine months ended September 30, 2022 included in contract liabilities at the beginning of the period is $57 mil ion and $139 mil ion, respectively. Increases in contract liabilities from cash received, net of amounts recognized as revenues, during the three and nine months ended September 30, 2022 were $138 mil ion and $366 mil ion, respectively.
Performance ObligationsThere were no material revenues recognized in the three and nine months ended September 30, 2022 from performance obligations satisfied in previous periods.
Revenues to be Recognized from Unfulfilled Performance ObligationsTotal revenues from performance obligations expected to be fulfil ed in future periods are $59.3 bil ion, of which $1.9 bil ion and $6.4 bil ion are expected to be recognized during the remaining three months ending December 31, 2022 and the year ending December 31, 2023, respectively.
The revenues excluded from the amounts above based on optional exemptions available under Accounting Standards Codification (ASC) 606, as explained below, represent a significant portion of our overal revenues and revenues from contracts with customers. Certain revenues such as flow-through operating costs charged to shippers are recognized at the amount for which we have the right to invoice our customers and are excluded from the amounts for revenues to be recognized in the future from unfulfil ed performance obligations above. Variable consideration is excluded from the amounts above due to the uncertainty of the associated consideration, which is general y resolved when actual volumes and prices are determined. For example, we consider interruptible transportation service revenues to be variable revenues since volumes cannot be estimated. Additional y, the effect of escalation on certain tol s which are contractual y escalated for inflation has not been reflected in the amounts above as it is not possible to reliably estimate future inflation rates. Revenues for periods extending beyond the current rate settlement term for regulated contracts where the tol s are periodical y reset by the regulator are excluded from the amounts above since future tol s remain unknown. Final y, revenues from contracts with customers which have an original expected duration of one year or less are excluded from the amounts above.
				9

Variable ConsiderationDuring the three and nine months ended September 30, 2022, revenue for the Canadian Mainline has been recognized in accordance with the terms of the Competitive Tol ing Settlement, which expired on June 30, 2021. The tol s in place on June 30, 2021 continue on an interim basis until a new commercial arrangement is implemented and are subject to finalization and adjustment applicable to the interim period, if any. Due to the uncertainty of adjustment to tol ing pursuant to a Canada Energy Regulator (CER) decision and potential customer negotiations, interim tol revenue recognized during the three and nine months ended September 30, 2022 is considered variable consideration.
Recognition and Measurement of Revenues
		Gas
			Transmission	Gas		Renewable
	Liquids	and			Distribution	Power
	Pipelines		Midstream		and Storage	Generation Consolidated	Three months ended September 30, 2022(mil ions of Canadian dol ars)

Revenues from products transferred at a point in time								—	—	41	—	41
Revenues from products and services transferred over
time1								3,020	1,355	864	68	5,307
Total revenue from contracts with customers								3,020	1,355	905	68	5,348
		Gas
			Transmission	Gas		Renewable
	Liquids	and			Distribution	Power
	Pipelines		Midstream		and Storage	Generation Consolidated	Three months ended September 30, 2021(mil ions of Canadian dol ars)Revenues from products transferred at a point in time
								—	—	13	—	13
Revenues from products and services transferred over
time1								2,373	1,154	661	44	4,232
Total revenue from contracts with customers								2,373	1,154	674	44	4,245
		Gas
			Transmission	Gas		Renewable
	Liquids	and			Distribution	Power
	Pipelines		Midstream		and Storage	Generation Consolidated	Nine months ended September 30, 2022(mil ions of Canadian dol ars)

Revenues from products transferred at a point in time								—	—	77	—	77
Revenues from products and services transferred over
time1								8,385	3,937	4,399	211	16,932
Total revenue from contracts with customers								8,385	3,937	4,476	211	17,009
		Gas
			Transmission	Gas		Renewable
	Liquids	and			Distribution	Power
	Pipelines		Midstream		and Storage	Generation Consolidated	Nine months ended September 30, 2021(mil ions of Canadian dol ars)Revenues from products transferred at a point in time
								—	—	47	—	47
Revenues from products and services transferred over
time1								6,922	3,475	3,361	125	13,883
Total revenue from contracts with customers								6,922	3,475	3,408	125	13,930
1 Revenue from crude oil and natural gas pipeline transportation, storage, natural gas gathering, compression and treating, natural
gas distribution, natural gas storage services and electricity sales.
	10

4. SEGMENTED INFORMATION
		Gas		Gas
			Transmission		Distribution	Renewable
	Liquids	and		and		Power	Energy	Eliminations	Three months endedSeptember 30, 2022(mil ions of Canadian dol ars)
	Pipelines		Midstream	Storage		Generation	Services	and Other Consolidated

Operating revenues		2,899	1,366		909							120	6,419		(140)			11,573
Commodity and gas distribution
costs		27	—		(327)							(5) (6,465)	140			(6,630)
Operating and administrative	(1,173)	(545)		(311)							(58)	(9)		7			(2,089)
Income from equity investments		193	321		—							22	—		—	536
Gain on joint venture merger
transaction (Note 6)		—	1,076		—							—	—		—	1,076
Other income/(expense)		—	33		15							26	(15)		(942)	(883)
Earnings/(loss) before interest,
income taxes and depreciation and amortization
		1,946	2,251		286							105	(70)		(935)	3,583
Depreciation and amortization												(1,076)
Interest expense												(806)
Income tax expense												(318)
Earnings										1,383
Capital expenditures1		268	525		405			9	—		8	1,215
		Gas		Gas
			Transmission		Distribution	Renewable
	Liquids	and		and		Power	Energy	Eliminations	Three months endedSeptember 30, 2021(mil ions of Canadian dol ars)
	Pipelines		Midstream	Storage		Generation	Services	and Other Consolidated

Operating revenues		2,370	1,159		687							122	7,290		(162)			11,466
Commodity and gas distribution
costs		(6)	—		(135)							— (7,485)	159			(7,467)
Operating and administrative		(919)	(445)		(280)							(51)	(13)		41			(1,667)
Income/(loss) from equity
investments		226	211		(12)							15	—		—	440
Impairment of equity investments		—	(111)		—							—	—		—	(111)
Other income/(expense)			2	70		22			5	4	(159)	(56)
Earnings/(loss) before interest,
income taxes and depreciation and amortization
		1,673	884		282							91	(204)		(121)	2,605
Depreciation and amortization										(944)
Interest expense										(648)

Income tax expense										(199)

Earnings												814
Capital expenditures1		1,203	602		359							—	1	20	2,185
					11

		Gas		Gas
			Transmission		Distribution	Renewable
Nine months endedSeptember 30, 2022	Liquids	and		and		Power	Energy	Eliminations
	Pipelines		Midstream	Storage		Generation	Services	and Other Consolidated
(mil ions of Canadian dol ars)
Operating revenues		8,592	3,967		4,458							431 22,894	(457)			39,885
Commodity and gas distribution
costs		—	—		(2,258)							(13) (23,197)	454			(25,014)
Operating and administrative	(3,096)	(1,620)		(891)							(159)	(34)		(158)			(5,958)
Income/(loss) from equity
investments		561	877		1							100	—		(2)	1,537
Gain on joint venture merger
transaction (Note 6)		—	1,076		—							—	—		—	1,076
Other income/(expense)		36	84		58							30	(11)	(1,121)		(924)
Earnings/(loss) before interest,
income taxes and depreciation and amortization
		6,093	4,384		1,368							389	(348)	(1,284)				10,602
Depreciation and amortization												(3,195)
Interest expense														(2,316)
Income tax expense														(1,044)
Earnings										4,047
Capital expenditures1		1,086	1,087		1,005							26	—		32	3,236
		Gas		Gas
			Transmission		Distribution	Renewable
Nine months endedSeptember 30, 2021	Liquids	and		and		Power	Energy	Eliminations
	Pipelines		Midstream	Storage		Generation	Services	and Other Consolidated
(mil ions of Canadian dol ars)

Operating revenues		7,616	3,501		3,463							371 20,068	(468)			34,551
Commodity and gas distribution
costs		(16)	—		(1,392)							— (20,405)	479			(21,334)
Operating and administrative	(2,411)	(1,303)		(794)							(131)	(36)		(35)			(4,710)
Income from equity investments		560	525		37							65	—		—	1,187
Impairment of equity investments		—	(111)						—			(111)
Other income/(expense)		7	113		60							57	(6)		215	446
Earnings/(loss) before interest,
income taxes and depreciation and amortization
		5,756	2,725		1,374							362	(379)		191			10,029
Depreciation and amortization												(2,805)
Interest expense												(1,923)

Income tax expense										(952)

Earnings												4,349
Capital expenditures1		3,385	1,631		878			7	1		42	5,944
	1 Includes al owance for equity funds used during construction.
					12

5. EARNINGS PER COMMON SHARE AND DIVIDENDS PER SHARE
BASICEarnings per common share is calculated by dividing earnings attributable to common shareholders by the weighted average number of common shares outstanding. On December 30, 2021, we closed the sale of our minority ownership in Noverco Inc. (Noverco). For both the three and nine months ended September 30, 2021, the weighted average number of common shares outstanding was reduced by our pro-rata weighted average interest in our own common shares of approximately 2 mil ion, resulting from our reciprocal investment in Noverco.
DILUTEDThe treasury stock method is used to determine the dilutive impact of stock options and restricted stock units (RSU). This method assumes any proceeds from the exercise of stock options and vesting of RSUs would be used to purchase common shares at the average market price during the period.
Weighted average shares outstanding used to calculate basic and diluted earnings per share are as fol ows:
	Three months ended	Nine months ended
	September 30,	September 30,
			2022	2021	2022			2021
(number of shares in mil ions)
Weighted average shares outstanding		2,025			2,024	2,026			2,023
Effect of dilutive options and RSUs			3	2		3	2
Diluted weighted average shares outstanding		2,028			2,026	2,029			2,025
For the three months ended September 30, 2022 and 2021, 11.4 mil ion and 13.3 mil ion, respectively, of anti-dilutive stock options with a weighted average exercise price of $56.49 and $56.16, respectively, were excluded from the diluted earnings per common share calculation.
For the nine months ended September 30, 2022 and 2021, 9.2 mil ion and 20.5 mil ion, respectively, of anti-dilutive stock options with a weighted average exercise price of $56.63 and $52.19, respectively, were excluded from the diluted earnings per common share calculation.
							13

DIVIDENDS PER SHAREOn November 2, 2022, our Board of Directors declared the fol owing quarterly dividends. Al dividends are payable on December 1, 2022 to shareholders of record on November 15, 2022.
	Dividend per share
Common Shares1		$0.86000
Preference Shares, Series A		$0.34375
Preference Shares, Series B2		$0.32513
Preference Shares, Series D		$0.27875
Preference Shares, Series F		$0.29306
Preference Shares, Series H		$0.27350
Preference Shares, Series L3		US$0.36612
Preference Shares, Series N		$0.31788
Preference Shares, Series P		$0.27369
Preference Shares, Series R		$0.25456
Preference Shares, Series 1		US$0.37182
Preference Shares, Series 3		$0.23356
Preference Shares, Series 5		US$0.33596
Preference Shares, Series 7		$0.27806
Preference Shares, Series 9		$0.25606
Preference Shares, Series 11		$0.24613
Preference Shares, Series 13		$0.19019
Preference Shares, Series 15		$0.18644
Preference Shares, Series 19		$0.30625
1 The quarterly dividend per common share was increased 3% to $0.86 from $0.835, effective March 1, 2022.2 The quarterly dividend per share paid on Preference Shares, Series B was increased to $0.32513 from $0.21340 on June 1, 2022
due to reset of the annual dividend on June 1, 2022. On June 1, 2022, al outstanding Preference Shares, Series C were converted to Preference Shares, Series B.
3 The quarterly dividend per share paid on Preference Shares, Series L was increased to US$0.36612 from US$0.30993 on
September 1, 2022 due to reset of the annual dividend on September 1, 2022.
PREFERENCE SHARE REDEMPTIONSOn March 1, 2022, we redeemed our $750 mil ion outstanding Cumulative Redeemable Minimum Rate Reset Preference Shares, Series 17. On June 1, 2022, we also redeemed our US$200 mil ion outstanding Cumulative Redeemable Preference Shares, Series J. Dividends are cumulative, payable quarterly and are included in Preference share dividends in the Consolidated Statements of Earnings.
			14

6. ACQUISITIONS AND DISPOSITIONS
DCP MIDSTREAM, LLCOn August 17, 2022, we completed a joint venture merger transaction with Phil ips 66 (P66) resulting in a single joint venture, DCP Midstream, LLC, holding both our and P66's indirect ownership interests in Gray Oak Pipeline, LLC (Gray Oak) and DCP Midstream, LP (DCP). Our ownership in DCP Midstream, LLC consists of Class A and Class B Interests which track to our investments in DCP, included in the Gas Transmission and Midstream segment, and Gray Oak, included in the Liquids Pipelines segment, respectively. Through our investment in DCP Midstream, LLC, we increased our indirect economic interest in Gray Oak to 58.5% from 22.8% and reduced our indirect economic interest in DCP to 13.2% from 28.3%. As a result of the transaction, Enbridge wil assume operatorship of Gray Oak in the second quarter of 2023.
We determined the fair value of our decrease in economic interest in DCP based on the unadjusted quoted market price of DCP’s publicly traded common units on the transaction closing date. The fair value of our increased economic interest in Gray Oak was determined using the fair value prescribed to the change in our economic interest in DCP. As a result of the merger transaction and the realignment of our economic interests in DCP and Gray Oak, we also received cash consideration of approximately $522 mil ion (US$404 mil ion) and recorded an accounting gain of $1.1 bil ion (US$832 mil ion) to Gain on joint venture merger transaction in the Consolidated Statements of Earnings. Both DCP and Gray Oak continue to be accounted for as equity method investments.
TRI GLOBAL ENERGY, LLCOn September 27, 2022, through a whol y-owned United States (US) subsidiary, we acquired al of the outstanding common units in Tri Global Energy, LLC (TGE) for cash consideration of $295 mil ion (US$215 mil ion) plus potential contingent payments of up to $72 mil ion (US$53 mil ion) dependent on the achievement of performance milestones by TGE (the Acquisition). The Acquisition is subject to customary closing and working capital adjustments. TGE is an onshore renewable project developer in the US with a development portfolio of wind and solar projects. The Acquisition enhances Enbridge's renewable power platform and accelerates our North American growth strategy.
We accounted for the Acquisition using the acquisition method as prescribed by ASC 805 BusinessCombinations. In accordance with valuation methodologies described in ASC 820 Fair ValueMeasurements, the acquired assets and assumed liabilities are recorded at their estimated fair valuesas at the date of acquisition.
	15

The fol owing table summarizes the estimated preliminary fair values that were assigned to the net assetsof TGE:
	September 27,
		2022
(mil ions of Canadian dol ars)Fair value of net assets acquired:
Current assets		5
Property, plant and equipment		3
Long-term investments		8
Intangible assets (a)		117
Long-term assets		3
Current liabilities		61
Long-term liabilities (b)		123
Goodwil (c)		392
Purchase price:
Cash		295
Contingent consideration (d)		49
		344
a) Intangible assets consist of compensation expected to be earned by TGE on existing development
contracts once certain project development milestones are met. Fair value was determined using a discounted cash flow method which is an income-based approach to valuation that estimates the present value of future projected benefits from the contracts. The intangible assets wil be amortized on a straight-line basis over an expected useful life of two and a half years.
b) Long-term liabilities consist primarily of obligations payable to third parties which are contingent on
milestones being met for certain projects. Fair value represents the present value of the future cash flow payments at the date of the Acquisition.
c) Goodwil is primarily attributable to expected future returns from new opportunities to develop wind and
solar projects, as wel as enhanced scale and operational diversity of our renewable projects portfolio. The goodwil balance recognized has been assigned to our Renewable Power Generation segment and is tax deductible over 15 years.
d) We agreed to pay additional contingent consideration of up to US$53 mil ion to TGE's former
common unit holders if performance milestones are met on certain projects. The US$36 mil ion of contingent consideration recognized in the purchase price represents the fair value of contingentconsideration at the date of acquisition. The fair value was determined using an income-based approach.
Upon completion of the Acquisition, we began consolidating TGE. For the period beginning September 27, 2022 through to September 30, 2022, operating revenues and earnings attributable to common shareholders generated by TGE were immaterial. The impact to our supplemental pro forma consolidated operating revenues and earnings attributable to common shareholders for the three and nine months ended September 30, 2022 and 2021, as if the Acquisition had been completed on January 1, 2021, was also immaterial.
			16

ATHABASCA REGIONAL OIL SANDS SYSTEMOn September 28, 2022, we entered into an agreement to sel an 11.6% non-operating interest in seven pipelines in the Athabasca region of northern Alberta from our Regional Oil Sands System to Athabasca Indigenous Investments Limited Partnership, an entity representing 23 First Nation and Métis communities. We wil maintain an 88.4% control ing interest in these assets, which are a component of our Liquids Pipelines segment, and continue to manage, operate and provide administrative services to them. On October 5, 2022, we closed the sale for total consideration of approximately $1.1 bil ion, less customary closing adjustments.
7. DEBT
CREDIT FACILITIESThe fol owing table provides details of our committed credit facilities as at September 30, 2022:
		Total
	Maturity1	Facilities	Draws2	Available
(mil ions of Canadian dol ars)
Enbridge Inc.	2023-2027	10,949	9,451	1,498
Enbridge (U.S.) Inc.	2024-2027	8,245	3,909	4,336
Enbridge Pipelines Inc.	2024	2,000	858	1,142
Enbridge Gas Inc.	2024	2,000	1,885		115
Total committed credit facilities					23,194	16,103	7,091
	1 Maturity date is inclusive of the one-year term out option for certain credit facilities.2 Includes facility draws and commercial paper issuances that are back-stopped by credit facilities.
On February 10, 2022, we renewed our three year $1.0 bil ion sustainability-linked credit facility, extending the maturity date out to July 2025.
On May 17, 2022, we entered into a three year term loan with a syndicate of Japanese banks for approximately $806 mil ion (¥84.8 bil ion), which wil mature in May 2025 and replaces the approximately $499 mil ion (¥52.5 bil ion) term loan that matured in May 2022. Additional y, on May 24, 2022, we entered into a 364-day term loan for approximately $1.9 bil ion, which wil mature in May 2023.
On June 23, 2022, we renewed approximately $5.5 bil ion of our 364-day extendible credit facilities to July 2024, which includes a one-year term out provision from July 2023.
In July and August 2022, we renewed $12.7 bil ion of our credit facilities, extending the maturity dates of our 364-day credit facilities to July 2024, inclusive of a one-year term out provision from July 2023, and our five year facilities out to July 2027. As a part of the renewals, we increased our credit facilities by approximately $641 mil ion.
In addition to the committed credit facilities noted above, we maintain $1.3 bil ion of uncommitted demand letter of credit facilities, of which $780 mil ion was unutilized as at September 30, 2022. As at December 31, 2021, we had $1.3 bil ion of uncommitted demand letter of credit facilities, of which $854 mil ion was unutilized.
Our credit facilities carry a weighted average standby fee of 0.1% per annum on the unused portion and draws bear interest at market rates. Certain credit facilities serve as a back-stop to the commercial paper programs and we have the option to extend such facilities, which are currently scheduled to mature from 2024 to 2027.
						17

As at September 30, 2022 and December 31, 2021, commercial paper and credit facility draws, net of short-term borrowings and non-revolving credit facilities that mature within one year, of $11.9 bil ion and $11.3 bil ion, respectively, were supported by the availability of long-term committed credit facilities and, therefore, have been classified as long-term debt.
LONG-TERM DEBT ISSUANCESDuring the nine months ended September 30, 2022, we completed the fol owing long-term debt issuances totaling $1.4 bil ion and US$2.6 bil ion:
		Principal
Company	Issue Date	Amount
(mil ions of Canadian dol ars unless otherwise stated)Enbridge Inc.
	January 2022		5.00% fixed-to-fixed subordinated notes due January 20821	$750
	February 2022		Floating rate senior notes due February 20242	US$600
	February 2022		2.15% senior notes due February 2024	US$400
	February 2022		2.50% senior notes due February 2025	US$500
	September 2022 7.38% fixed-to-fixed subordinated notes due January 20833	US$500
	September 2022 7.63% fixed-to-fixed subordinated notes due January 20834	US$600
Enbridge Gas Inc.
	August 2022		4.15% medium-term notes due August 2032	$325
	August 2022		4.55% medium-term notes due August 2052	$325
1 For the initial 10 years, the notes carry a fixed interest rate. At year 10, the interest rate wil be reset to equal to the Five-Year
Government of Canada bond yield plus a margin of 3.54%. Subsequent to year 10, every five years, the Five Year Government of Canada bond yield is reset. At year 30, the interest rate wil be reset to equal to the Five-Year Government of Canada bond yield plus a margin of 4.29%.
2 Notes carry an interest rate set to equal the Secured Overnight Financing Rate plus a margin of 63 basis points.3 For the initial five years, the notes carry a fixed interest rate. At year five, the interest rate wil be set to equal to the Five-Year US
Treasury rate plus a margin of 3.71%. At year 10, the interest rate wil be reset to equal the Five-Year US Treasury rate plus a margin of 3.96%. Subsequent to year 10, every five years, the Five Year US Treasury rate is reset. At year 25, the interest rate wil be reset to equal to the Five-Year US Treasury rate plus a margin of 4.71%.
4 For the initial 10 years, the notes carry a fixed interest rate. At year 10, the interest rate wil be reset to equal to the Five-Year US
Treasury rate plus a margin of 4.42%. Subsequent to year 10, every five years, the Five-Year US Treasury rate wil be reset. At year 30, the interest rate wil be reset to equal to the Five-Year US Treasury rate plus a margin of 5.17%.
LONG-TERM DEBT REPAYMENTSDuring the nine months ended September 30, 2022, we completed the fol owing long-term debt repayments totaling US$1.5 bil ion and $0.3 bil ion:
		Principal
Company	Repayment Date	Amount
(mil ions of Canadian dol ars unless otherwise stated)Enbridge Inc.
	February 2022		Floating rate notes1	US$750
	February 2022		4.85% medium-term notes	$200
	July 2022		2.90% senior notes due July 2022	US$700
Enbridge Gas Inc.
	April 2022		4.85% medium-term notes	$125
Enbridge Pipelines (Southern Lights) L.L.C.
	June 2022		3.98% senior notes	US$34
Enbridge Southern Lights LP
	June 2022		4.01% senior notes	$9
1 Notes carried an interest rate set to equal the three-month London Interbank Offered Rate plus a margin of 50 basis points.
SUBORDINATED TERM NOTESAs at September 30, 2022 and December 31, 2021, our fixed-to-floating rate and fixed-to-fixed rate subordinated term notes had a principal value of $10.4 bil ion and $7.7 bil ion, respectively.
					18

FAIR VALUE ADJUSTMENTAs at September 30, 2022 and December 31, 2021, the net fair value adjustments to total debt assumed in a historical acquisition were $630 mil ion and $667 mil ion, respectively.
During the three and nine months ended September 30, 2022, amortization of the fair value adjustment recorded as a reduction to Interest expense in the Consolidated Statements of Earnings was $11 mil ion (September 30, 2021 - $11 mil ion) and $33 mil ion (September 30, 2021 - $36 mil ion), respectively.
DEBT COVENANTSOur credit facility agreements and term debt indentures include standard events of default and covenant provisions whereby accelerated repayment and/or termination of the agreements may result if we are to default on payment or violate certain covenants. As at September 30, 2022, we are in compliance with al covenant provisions.
8. COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME/
(LOSS)
Changes in Accumulated other comprehensive income/(loss) (AOCI) attributable to our common shareholders for the nine months ended September 30, 2022 and 2021 are as fol ows:
		Excluded				Pension
	Cash	Components	Net	Cumulative			and
	Flow	of Fair Value		Investment	Translation		Equity	OPEB
	Hedges	Hedges	Hedges	Adjustment		Investees	Adjustment	Total
(mil ions of Canadian dol ars)
Balance as at January 1, 2022		(897)			—	(166)				56	(5)	(84) (1,096)
Other comprehensive income/(loss)
retained in AOCI		1,073			(38)	(1,187)				5,168	(6)	— 5,010
Other comprehensive loss/(income)
reclassified to earningsInterest rate contracts1
		187			—	—				—	—	—	187
Foreign exchange contracts2		(4)			—	—				—	—	—	(4)
Other contracts3		3			—	—				—	—	—	3
Amortization of pension and OPEB
									actuarial gain4	—			—	—			—	—			(9)	(9)
Other		—			—	—				—	16	—	16
		1,259			(38)	(1,187)				5,168	10				(9) 5,203
Tax impact
Income tax on amounts retained in
									AOCI	(242)			—	—			—	(1)	—	(243)
Income tax on amounts reclassified to
									earnings	(41)			—	—			—	—			2	(39)
		(283)			—	—				—	(1)				2	(282)
Balance as at September 30, 2022		79			(38)	(1,353)				5,224	4	(91) 3,825
		19

	Excluded			Pension
CashComponentsNetCumulativeand
Flow	of Fair Value	Investment	Translation		Equity	OPEB
HedgesHedgesHedgesAdjustmentInvesteesAdjustmentTotal
						(mil ions of Canadian dol ars)Balance as at January 1, 2021
	(1,326)		5	(215)					568	66	(499) (1,401)
						Other comprehensive income/(loss)
						retained in AOCI		284		(3)	18				(340)	(33)	—	(74)
						Other comprehensive loss/(income)
						reclassified to earningsInterest rate contracts1
	218		—	—					—	—	—	218
						Foreign exchange contracts2		4		—	—				—	—	—	4
						Other contracts3		1		—	—				—	—	—	1
						Commodity contracts5		(4)		—	—				—	—	—	(4)
						Amortization of pension and OPEB
						actuarial loss4		—		—	—				—	—	21	21
						Other		17		—	—				(20)	3	—	—
	520		(3)	18					(360)	(30)	21	166
						Tax impact
						Income tax on amounts retained in
						AOCI		(72)		—	(2)				—	5	—	(69)
						Income tax on amounts reclassified to
						earnings		(51)		—	—				—	—			(5)	(56)
	(123)		—	(2)					—	5			(5)	(125)
						Balance as at September 30, 2021		(929)		2	(199)				208	41	(483) (1,360)
							1 Reported within Interest expense in the Consolidated Statements of Earnings.2 Reported within Transportation and other services revenues and Net foreign currency gain/(loss) in the Consolidated Statements
						of Earnings.
						3 Reported within Operating and administrative expense in the Consolidated Statements of Earnings.4 These components are included in the computation of net periodic benefit (credit)/cost and are reported within Other income/
						(expense) in the Consolidated Statements of Earnings.
						5 Reported within Transportation and other services revenues, Commodity sales revenue, Commodity costs and Operating and
						administrative expense in the Consolidated Statements of Earnings.
						9. RISK MANAGEMENT AND FINANCIAL INSTRUMENTS
						MARKET RISKOur earnings, cash flows and other comprehensive income/(loss) (OCI) are subject to movements in foreign exchange rates, interest rates, commodity prices and our share price (col ectively, market risks). Formal risk management policies, processes and systems have been designed to mitigate these risks.
						The fol owing summarizes the types of market risks to which we are exposed and the risk management instruments used to mitigate them. We use a combination of qualifying and non-qualifying derivative instruments to manage the risks noted below.
						Foreign Exchange RiskWe generate certain revenues, incur expenses, and hold a number of investments and subsidiaries that are denominated in currencies other than Canadian dol ars. As a result, our earnings, cash flows and OCI are exposed to fluctuations resulting from foreign exchange rate variability.
						We employ financial derivative instruments to hedge foreign currency denominated earnings exposure. A combination of qualifying cash flow, fair value and non-qualifying derivative instruments is used to hedge anticipated foreign currency denominated revenues and expenses, and to manage variability in cash flows. We hedge certain net investments in US dol ar denominated investments and subsidiaries using US dol ar denominated debt.
	20

Interest Rate RiskOur earnings and cash flows are exposed to short-term interest rate variability due to the regular repricing of our variable rate debt, primarily commercial paper. We monitor our debt portfolio mix of fixed and variable rate debt instruments to manage a consolidated portfolio of floating rate debt within the Board of Directors approved policy limit of a maximum of 30% of floating rate debt as a percentage of total debt outstanding. We primarily use qualifying derivative instruments to manage interest rate risk. Pay fixed-receive floating interest rate swaps may be used to hedge against the effect of future interest rate movements. We have implemented a hedging program to partial y mitigate the impact of short-term interest rate volatility on interest expense via execution of floating-to-fixed interest rate swaps. These hedges have an average fixed rate of 2.5%.
We are exposed to changes in the fair value of fixed rate debt that arise as a result of the changes in market interest rates. Pay floating-receive fixed interest rate swaps are used, when applicable, to hedge against future changes to the fair value of fixed rate debt which mitigates the impact of fluctuations in the fair value of fixed rate debt via execution of fixed-to-floating interest rate swaps. As at September 30, 2022, we did not have any pay floating-receive fixed interest rate swaps outstanding.
Our earnings and cash flows are also exposed to variability in longer term interest rates ahead of anticipated fixed rate term debt issuances. Forward starting interest rate swaps are used to hedge against the effect of future interest rate movements. We have established a program including some of our subsidiaries to partial y mitigate our exposure to long-term interest rate variability on forecasted term debt issuances via execution of floating-to-fixed interest rate swaps with an average swap rate of 2.1%.
Commodity Price RiskOur earnings and cash flows are exposed to changes in commodity prices as a result of our ownership interests in certain assets and investments, as wel as through the activities of our energy services subsidiaries. These commodities include natural gas, crude oil, power and natural gas liquids (NGL). We employ financial and physical derivative instruments to fix a portion of the variable price exposures that arise from physical transactions involving these commodities. We use primarily non-qualifying derivative instruments to manage commodity price risk. Equity Price RiskEquity price risk is the risk of earnings fluctuations due to changes in our share price. We have exposure to our own common share price through the issuance of various forms of stock-based compensation, which affect earnings through revaluation of the outstanding units every period. We use equity derivatives to manage the earnings volatility derived from one form of stock-based compensation, restricted share units. We use a combination of qualifying and non-qualifying derivative instruments to manage equity price risk.
TOTAL DERIVATIVE INSTRUMENTSWe general y have a policy of entering into individual International Swaps and Derivatives Association, Inc. (ISDA) agreements, or other similar derivative agreements, with the majority of our financial derivative counterparties. These agreements provide for the net settlement of derivative instruments outstanding with specific counterparties in the event of bankruptcy or other significant credit events, and reduce our credit risk exposure on financial derivative asset positions outstanding with the counterparties in those circumstances.
	21

The fol owing table summarizes the Consolidated Statements of Financial Position location and carrying value of our derivative instruments, as wel as the maximum potential settlement amounts in the event of the specific circumstances described above. Al amounts are presented gross in the Consolidated Statements of Financial Position.
	Derivative	Derivative
	Instruments	Instruments	Non-		Total Gross
	Used as	Used as	QualifyingDerivative		Derivative	Amounts	Total Net
	Cash Flow	Fair Value			Instruments	Available	Derivative
September 30, 2022	Hedges	Hedges		Instruments	as Presented	for Offset	Instruments
(mil ions of Canadian dol ars)Accounts receivable and other
Foreign exchange contracts								—	—	65					65		(37)		28
Interest rate contracts								127	—	1					128		(17)	111
Commodity contracts								—	—	414					414		(230)	184
Other contracts								1	—	5					6				—	6
								128	—	485					613 1	(284)	329
Deferred amounts and other assets
Foreign exchange contracts								—	117	203					320		(164)	156
Interest rate contracts								830	—	—					830				—	830
Commodity contracts								—	—	66					66		(26)		40
Other contracts								1	—	—					1				(1)	—
								831	117	269	1,217		(191)	1,026
Accounts payable and other
Foreign exchange contracts								—	(37)	(693)					(730)		37	(693)
Interest rate contracts								(1)	—	(16)					(17)		17	—
Commodity contracts								(32)	—	(380)					(412)	230	(182)
Other contracts								—	—	—					—				—	—
								(33)	(37)	(1,089)	(1,159) 1	284	(875)
Other long-term liabilities
Foreign exchange contracts								—	(6)	(1,423)	(1,429)	164	(1,265)
Interest rate contracts								(3)	—	—					(3)		—	(3)
Commodity contracts								(27)	—	(145)					(172)		26	(146)
Other contracts								(1)	—	—					(1)		1	—
								(31)	(6)	(1,568)	(1,605)	191	(1,414)
Total net derivative assets/(liabilities)
Foreign exchange contracts								—	74	(1,848)	(1,774)						—	(1,774)
Interest rate contracts								953	—	(15)					938				—	938
Commodity contracts								(59)	—	(45)					(104)		—	(104)
Other contracts								1	—	5					6				—	6
								895	74	(1,903)					(934)		—	(934)
1 As at September 30, 2022, $28 mil ion and $36 mil ion were reported within Accounts receivable from affiliates and Accounts
payable to affiliates, respectively, in the Consolidated Statements of Financial Position.
		22

	Derivative	Derivative
	Instruments	Instruments	Non-		Total Gross
	Used as	Used as	QualifyingDerivative		Derivative	Amounts	Total Net
	Cash Flow	Fair Value			Instruments	Available	Derivative
December 31, 2021	Hedges	Hedges		Instruments	as Presented	for Offset	Instruments
(mil ions of Canadian dol ars)Accounts receivable and other
Foreign exchange contracts								—	—	259							259	(41)	218
Interest rate contracts								64	—	—							64	—	64
Commodity contracts								—	—	204							204	(129)				75
Other contracts								—	—	2							2	—	2
								64	—	465							529	(170)	359
Deferred amounts and other assets
Foreign exchange contracts								—	—	240							240	(61)	179
Interest rate contracts								88	—	—							88	(1)	87
Commodity contracts								—	—	29							29	(13)				16
Other contracts								—	—	3							3	—	3
								88	—	272							360	(75)	285
Accounts payable and other
Foreign exchange contracts								(15)	(112)	(176)							(303)	41	(262)
Interest rate contracts		(150)								—	—							(150)	—	(150)
Commodity contracts								(14)	—	(250)							(264)	129	(135)
		(179)	(112)	(426)							(717)	170	(547)
Other long-term liabilities
Foreign exchange contracts								—	—	(423)							(423)	61	(362)
Interest rate contracts								(1)	—	(23)							(24)	1	(23)
Commodity contracts								(17)	—	(67)							(84)	13	(71)
								(18)	—	(513)							(531)	75	(456)
Total net derivative assets/(liabilities)
Foreign exchange contracts								(15)	(112)	(100)							(227)	—	(227)
Interest rate contracts								1	—	(23)							(22)	—	(22)
Commodity contracts								(31)	—	(84)							(115)	—	(115)
Other contracts								—	—	5							5	—	5
								(45)	(112)	(202)							(359)	—	(359)
The fol owing table summarizes the maturity and notional principal or quantity outstanding related to our derivative instruments.
September 30, 2022		2022		2023	2024		2025	2026 Thereafter	Total
Foreign exchange contracts - US dol ar forwards -
purchase (mil ions of US dol ars)			799	4 1,000		500	—	— 2,303
Foreign exchange contracts - US dol ar forwards - sel
(mil ions of US dol ars)		3,017 7,185 6,134 4,361 3,761									1,481 25,939
Foreign exchange contracts - British pound (GBP)
forwards - sel (mil ions of GBP)									7	29	30		30	28	32	156
Foreign exchange contracts - Euro forwards - sel (mil ions
of Euro)									23	92	91		86	85					343	720
Foreign exchange contracts - Japanese yen forwards -
purchase (mil ions of yen)									—	—	— 84,800			—	— 84,800
Interest rate contracts - short-term debt pay fixed rate
(mil ions of Canadian dol ars)		2,715 3,190	241		31	26	64 6,267
Interest rate contracts - long-term debt pay fixed rate
(mil ions of Canadian dol ars)			900 4,099 1,781			594	—	— 7,374
Equity contracts (mil ions of Canadian dol ars)									—	36	31		11	—	—	78
Commodity contracts - natural gas (bil ions of cubic feet)1									33	49	21		13	3	—	119
Commodity contracts - crude oil (mil ions of barrels)1									3	—	—							—	—	—	3
Commodity contracts - power (megawatt per hour) (MW/H)									5	(25)	(33)		(43)	—	—	(31) 2
1 Total is a net purchase/(sale) of underlying commodity.2 Total is an average net purchase/(sale) of power.
		23

Fair Value DerivativesFor foreign exchange derivative instruments that are designated and qualify as fair value hedges, the gain or loss on the derivative is included in Net foreign currency gain/(loss) or Interest expense in the Consolidated Statements of Earnings. The offsetting loss or gain on the hedged item attributable to the hedged risk is included in Net foreign currency gain/(loss) in the Consolidated Statements of Earnings. Any excluded components are included in the Consolidated Statements of Comprehensive Income.
	Three months ended	Nine months ended
	September 30,	September 30,
			2022	2021	2022			2021
(mil ions of Canadian dol ars)Unrealized gain on derivative
			122	50		221	15
Unrealized loss on hedged item			(122)	(50)	(211)			(22)
Realized loss on derivative			(5)	(1)	(101)			(40)
Realized gain on hedged item			—	—		85	45
The Effect of Derivative Instruments on the Statements of Earnings and Comprehensive IncomeThe fol owing table presents the effect of cash flow hedges and fair value hedges on our consolidated earnings and consolidated comprehensive income, before the effect of income taxes:
	Three months ended	Nine months ended
	September 30,	September 30,
			2022	2021	2022			2021
(mil ions of Canadian dol ars)Amount of unrealized gain/(loss) recognized in OCI
Cash flow hedges
							Foreign exchange contracts		1	4		3	(21)
							Interest rate contracts		230	(1)	1,087			293
							Commodity contracts		(16)	(21)		(27)	(25)
							Other contracts		(4)	(2)		(4)	2
Fair value hedges
							Foreign exchange contracts		(33)	(1)		(38)	(3)
			178	(21)	1,021			246
Amount of (gain)/loss reclassified from AOCI to earnings
Foreign exchange contracts1			—	1		13	4
Interest rate contracts2			45	76		187	218
Commodity contracts			—	(4)		—	(4)
Other contracts3			1	—		3	1
									46	73		203	219
1 Reported within Transportation and other services revenues and Net foreign currency gain/(loss) in the Consolidated Statements
of Earnings.
2 Reported within Interest expense in the Consolidated Statements of Earnings.3 Reported within Operating and administrative expense in the Consolidated Statements of Earnings.
We estimate that a gain of $57 mil ion of AOCI related to unrealized cash flow hedges wil be reclassified to earnings in the next 12 months. Actual amounts reclassified to earnings depend on the foreign exchange rates, interest rates and commodity prices in effect when derivative contracts that are currently outstanding mature. For al forecasted transactions, the maximum term over which we are hedging exposures to the variability of cash flows is 39 months as at September 30, 2022.
								24

Non-Qualifying DerivativesThe fol owing table presents the unrealized gains and losses associated with changes in the fair value of our non-qualifying derivatives:
	Three months ended	Nine months ended
	September 30,	September 30,
			2022	2021	2022			2021
(mil ions of Canadian dol ars)Foreign exchange contracts1
		(1,379)			(436)	(1,752)			18
Interest rate contracts2			17	2		1	4
Commodity contracts3			89	(102)		59	(120)
Other contracts4			(3)	2		1	12
Total unrealized derivative fair value loss, net		(1,276)			(534)	(1,691)			(86)
1 For the respective nine months ended periods, reported within Transportation and other services revenues (2022 - $375 mil ion
loss; 2021 - $71 mil ion gain) and Net foreign currency gain/(loss) (2022 - $1,377 mil ion loss; 2021 - $53 mil ion loss) in the Consolidated Statements of Earnings.
2 Reported as an (increase)/decrease within Interest expense in the Consolidated Statements of Earnings.3 For the respective nine months ended periods, reported within Transportation and other services revenues (2022 - $12 mil ion
gain; 2021 - nil), Commodity sales (2022 - $151 mil ion gain; 2021 - $5 mil ion loss), Commodity costs (2022 - $116 mil ion loss; 2021 - $124 mil ion loss) and Operating and administrative expense (2022 - $12 mil ion gain; 2021 - $8 mil ion gain) in the Consolidated Statements of Earnings.
4 Reported within Operating and administrative expense in the Consolidated Statements of Earnings.
LIQUIDITY RISK
	Liquidity risk is the risk that we wil not be able to meet our financial obligations, including commitments and guarantees, as they become due. In order to mitigate this risk, we forecast cash requirements over a 12-month rol ing time period to determine whether sufficient funds wil be available and maintain substantial capacity under our committed bank lines of credit to address any contingencies. Our primary sources of liquidity and capital resources are funds generated from operations, the issuance of commercial paper and draws under committed credit facilities and long-term debt, which includes debentures and medium-term notes. Our shelf prospectuses with securities regulators enable ready access to either the Canadian or US public capital markets, subject to market conditions. In addition, we maintain sufficient liquidity through committed credit facilities with a diversified group of banks and institutions which, if necessary, enables us to fund al anticipated requirements for approximately one year without accessing the capital markets. We are in compliance with al the terms and conditions of our committed credit facility agreements and term debt indentures as at September 30, 2022. As a result, al credit facilities are available to us and the banks are obligated to fund and have been funding us under the terms of the facilities.
CREDIT RISK
	Entering into derivative instruments may result in exposure to credit risk from the possibility that a counterparty wil default on its contractual obligations. In order to mitigate this risk, we enter into risk management transactions primarily with institutions that possess strong investment grade credit ratings. Credit risk relating to derivative counterparties is mitigated through maintenance and monitoring of credit exposure limits and contractual requirements, netting arrangements and ongoing monitoring of counterparty credit exposure using external credit rating services and other analytical tools.
							25

We have credit concentrations and credit exposure, with respect to derivative instruments, in the fol owing counterparty segments:
	September 30,		December 31,
		2022		2021
(mil ions of Canadian dol ars)Canadian financial institutions
		637		424
US financial institutions		361		130
European financial institutions		441		181
Asian financial institutions		208		30
Other1		165		122
		1,812		887
	1 Other is comprised of commodity clearing house and physical natural gas and crude oil counterparties.
As at September 30, 2022, we did not provide any letters of credit in lieu of providing cash col ateral to our counterparties pursuant to the terms of the relevant ISDA agreements. We held no cash col ateral on derivative asset exposures as at September 30, 2022 and December 31, 2021.
Gross derivative balances have been presented without the effects of col ateral posted. Derivative assets are adjusted for non-performance risk of our counterparties using their credit default swap spread rates, and are reflected at fair value. For derivative liabilities, our non-performance risk is considered in the valuation.
Credit risk also arises from trade and other long-term receivables, and is mitigated through credit exposure limits and contractual requirements, assessment of credit ratings and netting arrangements. Within Enbridge Gas Inc., credit risk is mitigated by the utility's large and diversified customer base and the ability to recover an estimate for expected credit losses through the ratemaking process. We actively monitor the financial strength of large industrial customers, and in select cases, have obtained additional security to minimize the risk of default on receivables. General y, we utilize a loss al owance matrix which contemplates historical credit losses by age of receivables, adjusted for any forward-looking information and management expectations to measure lifetime expected credit losses of receivables. The maximum exposure to credit risk related to non-derivative financial assets is their carrying value.
FAIR VALUE MEASUREMENTSOur financial assets and liabilities measured at fair value on a recurring basis include derivative and other financial instruments. We also disclose the fair value of other financial instruments not measured at fair value. The fair value of financial instruments reflects our best estimates of market value based on general y accepted valuation techniques or models and is supported by observable market prices and rates. When such values are not available, we use discounted cash flow analysis from applicable yield curves based on observable market inputs to estimate fair value.
FAIR VALUE OF FINANCIAL INSTRUMENTSWe categorize our financial instruments measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement.
Level 1Level 1 includes financial instruments measured at fair value based on unadjusted quoted prices for identical assets and liabilities in active markets that are accessible at the measurement date. An active market for a financial instrument is considered to be a market where transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Our Level 1 instruments consist primarily of exchange-traded derivatives used to mitigate the risk of crude oil price fluctuations, US and Canadian treasury bil s, investments in exchange-traded equity funds held by our captive insurance subsidiaries, as wel as restricted long-term investments in Canadian equity securities that are held in trust in accordance with the CER's regulatory requirements under the Land Matters Consultation Initiative (LMCI).
					26

Level 2Level 2 includes financial instrument valuations determined using directly or indirectly observable inputs other than quoted prices included within Level 1. Financial instruments in this category are valued using models or other industry standard valuation techniques derived from observable market data. Such valuation techniques include inputs such as quoted forward prices, time value, volatility factors and broker quotes that can be observed or corroborated in the market for the entire duration of the financial instrument. Derivatives valued using Level 2 inputs include non-exchange traded derivatives such as over-the-counter foreign exchange forward and cross currency swap contracts, interest rate swaps, physical forward commodity contracts, as wel as commodity swaps and options for which observable inputs can be obtained.
We have also categorized the fair value of our long-term debt, investments in debt securities held by our captive insurance subsidiaries, and restricted long-term investments in Canadian government bonds held in trust in accordance with the CER's regulatory requirements under the LMCI as Level 2. The fair value of our available-for-sale preferred share investment is based on the redemption value, which equals the face value plus accrued and unpaid interest periodical y reset based on market interest rates. The fair value of our long-term debt is based on quoted market prices for instruments of similar yield, credit risk and tenor. When possible, the fair value of our restricted long-term investments is based on quoted market prices for similar instruments and, if not available, based on broker quotes.
Level 3Level 3 includes derivative valuations based on inputs which are less observable, unavailable or where the observable data does not support a significant portion of the derivative’s fair value. General y, Level 3 derivatives are longer dated transactions, occur in less active markets, occur at locations where pricing information is not available or have no binding broker quote to support Level 2 classification. We have developed methodologies, benchmarked against industry standards, to determine fair value for these derivatives based on extrapolation of observable future prices and rates. Derivatives valued using Level 3 inputs primarily include long-dated derivative power, NGL and natural gas contracts, basis swaps, commodity swaps, and power and energy swaps, as wel as physical forward commodity contracts. We do not have any other financial instruments categorized in Level 3.
We use the most observable inputs available to estimate the fair value of our derivatives. When possible, we estimate the fair value of our derivatives based on quoted market prices. If quoted market prices are not available, we use estimates from third party brokers. For non-exchange traded derivatives classified in Levels 2 and 3, we use standard valuation techniques to calculate the estimated fair value. These methods include discounted cash flows for forwards and swaps and Black-Scholes-Merton pricing models for options. Depending on the type of derivative and nature of the underlying risk, we use observable market prices (interest, foreign exchange, commodity and share price) and volatility as primary inputs to these valuation techniques. Final y, we consider our own credit default swap spread as wel as the credit default swap spreads associated with our counterparties in our estimation of fair value.
	27

We have categorized our derivative assets and liabilities measured at fair value as fol ows:
				Total Gross
				Derivative
September 30, 2022	Level 1	Level 2	Level 3	Instruments
(mil ions of Canadian dol ars)
Financial assets
Current derivative assets
					Foreign exchange contracts		—	65		—		65
					Interest rate contracts		—	128		—		128
					Commodity contracts		120	142	152			414
					Other contracts		—	6	—		6
							120	341	152			613
Long-term derivative assets
					Foreign exchange contracts		—	320		—		320
					Interest rate contracts		—	830		—		830
					Commodity contracts		—	24	42			66
					Other contracts		—	1	—		1
							—	1,175	42				1,217
Financial liabilities
Current derivative liabilities
					Foreign exchange contracts		—	(730)		—		(730)
					Interest rate contracts		—	(17)		—		(17)
					Commodity contracts		(56)	(188)	(168)			(412)
					Other contracts		—	—	—		—
							(56)	(935)	(168)				(1,159)
Long-term derivative liabilities
					Foreign exchange contracts		—	(1,429)		—			(1,429)
					Interest rate contracts		—	(3)	—		(3)
					Commodity contracts		—	(49)	(123)			(172)
					Other contracts		—	(1)	—		(1)
							—	(1,482)	(123)				(1,605)
Total net financial assets/(liabilities)
Foreign exchange contracts							—	(1,774)		—			(1,774)
Interest rate contracts							—	938		—		938
Commodity contracts							64	(71)	(97)			(104)
Other contracts							—	6	—		6
							64	(901)	(97)			(934)
						28

				Total Gross
				Derivative
December 31, 2021	Level 1	Level 2	Level 3	Instruments
(mil ions of Canadian dol ars)
Financial assets
Current derivative assets
					Foreign exchange contracts		—	259		—			259
					Interest rate contracts		—	64		—			64
					Commodity contracts		38	71	95				204
					Other contracts		—	2	—			2
							38	396	95				529
Long-term derivative assets
					Foreign exchange contracts		—	240		—			240
					Interest rate contracts		—	88		—			88
					Commodity contracts		—	21		8			29
					Other contracts		—	3	—			3
							—	352		8			360
Financial liabilities
Current derivative liabilities
					Foreign exchange contracts		—	(303)		—			(303)
					Interest rate contracts		—	(150)		—			(150)
					Commodity contracts		(52)	(66)	(146)				(264)
							(52)	(519)	(146)				(717)
Long-term derivative liabilities
					Foreign exchange contracts		—	(423)		—			(423)
					Interest rate contracts		—	(24)		—			(24)
					Commodity contracts		—	(19)	(65)				(84)
							—	(466)	(65)				(531)
Total net financial assets/(liabilities)
Foreign exchange contracts							—	(227)		—			(227)
Interest rate contracts							—	(22)		—			(22)
Commodity contracts							(14)					7	(108)		(115)
Other contracts							—	5	—			5
							(14)	(237)	(108)				(359)
The significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments were as fol ows:
							Fair	Unobservable	Minimum	Maximum	Weighted					Unit of
September 30, 2022							Value	Input	Price	Price	Average Price	Measurement
(fair value in mil ions of Canadian dol ars)Commodity contracts - financial1
Natural gas								9	Forward gas price	5.41	12.51	7.75	$/mmbtu2
Crude								5			Forward crude price	64.09	108.87	77.06				$/barrel
Power							(80)			Forward power price	35.56	207.09	93.98				$/MW/H
Commodity contracts - physical1
Natural gas							(66)	Forward gas price	3.43	22.01	7.11	$/mmbtu2
Crude								24			Forward crude price	72.52	125.74	90.39				$/barrel
Power								11			Forward power price	37.08	175.52	81.95				$/MW/H
							(97)
1 Financial and physical forward commodity contracts are valued using a market approach valuation technique.2 One mil ion British thermal units (mmbtu).
3
						29

If adjusted, the significant unobservable inputs disclosed in the table above would have a direct impact on the fair value of our Level 3 derivative instruments. The significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments include forward commodity prices. Changes in forward commodity prices could result in significantly different fair values for our Level 3 derivatives.
Changes in net fair value of derivative assets and liabilities classified as Level 3 in the fair value hierarchy were as fol ows:
	Nine months ended
	September 30,
	2022	2021
(mil ions of Canadian dol ars)
Level 3 net derivative liability at beginning of period		(108)	(191)
Total gain/(loss)
Included in earnings1			41	(181)
Included in OCI			(28)	(29)
Settlements			(2)	167
Level 3 net derivative liability at end of period			(97)	(234)
1 Reported within Transportation and other services revenues, Commodity costs and Operating and administrative expense in the
Consolidated Statements of Earnings.
There were no transfers into or out of Level 3 as at September 30, 2022 or December 31, 2021.
NET INVESTMENT HEDGESWe currently have designated a portion of our US dol ar denominated debt as a hedge of our net investment in US dol ar denominated investments and subsidiaries.
During the nine months ended September 30, 2022 and 2021, we recognized an unrealized foreign exchange loss of $1,191 mil ion and gain of $18 mil ion, respectively, on the translation of US dol ar denominated debt. During the nine months ended September 30, 2022 and 2021, we recognized nil on the change in fair value of our outstanding foreign exchange forward contracts in OCI and nil in OCI associated with the settlement of foreign exchange forward contracts or with the settlement of US dol ar denominated debt that had matured during the period.
FAIR VALUE OF OTHER FINANCIAL INSTRUMENTSCertain long-term investments in other entities with no actively quoted prices are classified as Fair Value Measurement Alternative (FVMA) investments and are recorded at cost less impairment. The carrying value of FVMA investments totaled $102 mil ion and $52 mil ion as at September 30, 2022 and December 31, 2021, respectively.
We have Restricted long-term investments held in trust totaling $219 mil ion and $217 mil ion as at September 30, 2022 and December 31, 2021, respectively, which are classified as Level 1 in the fair value hierarchy. We also have Restricted long-term investments held in trust totaling $350 mil ion and $413 mil ion as at September 30, 2022 and December 31, 2021, respectively, which are classified as Level 2 in the fair value hierarchy. These securities are classified as restricted funds which are col ected from customers and held in trust for the purpose of funding pipeline abandonment in accordance with regulatory requirements. There were unrealized holding gains of $11 mil ion and losses of $120 mil ion for the three and nine months ended September 30, 2022, respectively (2021 - losses of $16 mil ion and $41 mil ion, respectively).
				30

We have whol y-owned captive insurance subsidiaries whose principal activity is providing insurance and reinsurance coverage for certain insurable property and casualty risk exposures in the US and Canada of our operating subsidiaries and certain equity investments. As at September 30, 2022, the fair value of short- and long-term investments in equity funds and debt securities held by our captive insurance subsidiaries was $108 mil ion and $400 mil ion, respectively (December 31, 2021 - $14 mil ion and $290 mil ion, respectively). These investments in equity funds and debt securities are recognized at fair value, classified as Level 1 and Level 2 in the fair value hierarchy, respectively, and are recorded in Accounts receivable and other and Long-term investments, respectively, in the Consolidated Statements of Financial Position. There were unrealized holding losses in equity funds and debt securities of $13 mil ion and $40 mil ion for the three and nine months ended September 30, 2022, respectively (2021 - gains of $1 mil ion and $4 mil ion, respectively).
As at September 30, 2022 and December 31, 2021, our long-term debt had a carrying value of $80.7 bil ion and $74.4 bil ion, respectively, before debt issuance costs and a fair value of $74.2 bil ion and $82.0 bil ion, respectively. We also have non-current notes receivable carried at book value and recorded in Deferred amounts and other assets in the Consolidated Statements of Financial Position. As at September 30, 2022 and December 31, 2021, the non-current notes receivable had a carrying value of $752 mil ion and $954 mil ion, respectively, which also approximates their fair value.
The fair value of financial assets and liabilities other than derivative instruments, long-term investments, restricted long-term investments, long-term debt and non-current notes receivable described above approximate their carrying value due to the short period to maturity.
10. INCOME TAXES
The effective income tax rates for the three months ended September 30, 2022 and 2021 were 18.7% and 19.6%, respectively, and for the nine months ended September 30, 2022 and 2021 were 20.5% and 18.0%, respectively.
The period-over-period changes in the effective income tax rates are due to the effect of rate-regulated accounting for income taxes and other permanent differences relative to earnings, an increase in US minimum tax, offset by a statutory rate decrease in Pennsylvania and an adjustment to 2020 regulatorybalances in the three-month period of the prior year.
11. PENSION AND OTHER POSTRETIREMENT BENEFITS
	Three months ended	Nine months ended
	September 30,	September 30,
			2022	2021	2022			2021
(mil ions of Canadian dol ars)Service cost
			46	48		136	144
Interest cost1			40	32		122	96
Expected return on plan assets1			(98)	(84)	(294)			(252)
Amortization of actuarial (gain)/loss1			(1)	14		(3)	42
Net periodic benefit (credit)/cost			(13)	10		(39)	30
1 Reported within Other income/(expense) in the Consolidated Statements of Earnings.
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12. CONTINGENCIES
We and our subsidiaries are involved in various legal and regulatory actions and proceedings which arise in the normal course of business, including interventions in regulatory proceedings and chal enges to regulatory approvals and permits. While the final outcome of such actions and proceedings cannot be predicted with certainty, management believes that the resolution of such actions and proceedings wil not have a material impact on our interim consolidated financial position or results of operations.
TAX MATTERSWe and our subsidiaries maintain tax liabilities related to uncertain tax positions. While ful y supportable in our view, these tax positions, if chal enged by tax authorities, may not be ful y sustained on review.
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