Company: ENBSF
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000895728-25-000006
Chunk: 11

Company: ENBRIDGE INC
Filing Date: 2025-02-14
Form: 10-K
Item: Item 7
Chunk 11
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 price risks. This program creates volatility in reported short-term earnings through the recognition of unrealized non-cash gains and losses on derivative instruments used to hedge these risks. Over the long-term, we believe our hedging program supports the reliable cash flows and dividend growth upon which our investor value proposition is based.

After taking into consideration the factors above, the remaining $294 million increase in earnings attributable to common shareholders is primarily explained by the following significant business factors:

•contributions from Enbridge Gas Ohio, Enbridge Gas Utah and Wexpro, and Enbridge Gas North Carolina, and higher distribution charges resulting from increases in customer base and higher demand in the contract market from Enbridge Gas Ontario in our Gas Distribution and Storage segment; 

•higher contributions from our Gas Transmission segment primarily due to favorable contracting and lower operating costs in our US Gas Transmission assets, and acquisitions of Tres Palacios and Aitken Creek in 2023, Tomorrow RNG, and Whistler Parent JV in 2024; 

•higher contributions from our Renewable Power Generation segment due to the generation of investment tax credits from our investment in Fox Squirrel Solar and the acquisition of an additional 24.45% interest in the Hohe See and Albatros Offshore Wind Facilities in November 2023; 

•higher contributions from our Liquids Pipelines segment due to lower Mainline power costs and discontinuation of rate-regulated accounting of Southern Lights Pipeline as at December 31, 2023; and

•higher investment income in Eliminations and Other from the pre-funding of the Acquisitions and from our wholly-owned insurance subsidiaries; partially offset by

•full year of lower Mainline system tolls in our Liquids Pipelines segment as a result of revised tolls effective July 1, 2023 and lower Line 3 Replacement (L3R) surcharge;

•lower contributions from Alliance Pipeline and Aux Sable from our Gas Transmission segment due to the sale of our interest in these investments in April 2024; 

•higher interest expense primarily due to higher average principal outstanding resulting from the Acquisitions; 

•higher depreciation and amortization expense mainly driven by acquisitions we completed in 2023 and 2024, as mentioned above; 

•higher income tax expense largely driven by higher earnings and higher US minimum tax; and 

•higher realized foreign exchange loss on hedge settlements in Eliminations and Other in 2024. 

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REVENUES

We generate revenues from three primary sources: transportation and other services, gas