Company: ENBSF
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000895728-25-000006
Chunk: 68

Company: ENBRIDGE INC
Filing Date: 2025-02-14
Form: 10-K
Item: Item 8
Chunk 68
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 period. Estimates are based on historical consumption patterns and heating degree days experienced. Heating degree days is a measure of coldness that is indicative of volumetric requirements for natural gas utilized for heating purposes in our distribution franchise areas.Certain of our US gas utilities have a revenue decoupling mechanism, referred to as a Customer Usage Tracker (CUT) or Conservation Enabling Tariff (CET), which allows for the collection of an allowed monthly revenue per customer and to promote energy conservation. Under the mechanism, non-gas revenues are decoupled from the temperature-adjusted usage per customer. The difference between actual revenue and the allowed monthly revenue per customer is recorded as a regulatory asset or liability and recovered from, or refunded to, customers through periodic rate adjustments.Amounts deferred under the CUT or CET arise due to specific arrangements with the regulators rather than customers and represent alternative revenue programs. Revenue from alternative revenue programs is recorded within Operating revenues in the Consolidated Statements of Earnings in the month the related adjustments are deferred and is presented as Other revenues not from contracts with customers when disaggregated in Note 4 - Revenue.Our crude oil, natural gas and power marketing businesses enter into commodity purchase and sale arrangements that are recorded on a gross basis as we are acting as the principal in the transactions.No non-affiliated customer exceeded 10.0% of our third-party revenues for the years ended December 31, 2024, 2023 and 2022.

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DERIVATIVE INSTRUMENTS AND HEDGINGNon-qualifying DerivativesNon-qualifying derivative instruments are used primarily to mitigate foreign exchange, interest rate and commodity price earnings exposure. Non-qualifying derivatives are measured at fair value with changes in fair value recognized in earnings in Commodity sales, Transportation and other services revenues, Commodity costs, Operating and administrative expense, Other income/(expense) and Interest expense.Derivatives in Qualifying Hedging RelationshipsWe use derivative financial instruments to manage our exposure to changes in commodity prices, foreign exchange rates and interest rates. Hedge accounting is optional and requires us to document the hedging relationship and test the hedging item's effectiveness in offsetting changes in fair values or cash flows of the underlying hedged item on an ongoing basis. We present the earnings effects of hedging items with the hedged transaction. Derivatives in qualifying hedging relationships are categorized as cash flow hedges, fair value hedges or net investment hedges.Cash Flow HedgesWe may use cash flow hedges to manage our exposure to changes