7. Long-term debt
During 2017-18, the Corporation issued $119 million in long-term debt, in increments of $100 million and $19 million with effective interest rates of 3.2% and 2.9%, respectively. The long-term debt issuance of $100 million was issued at a premium of $2 million.
During the period, the Corporation also repaid $59 million in long-term debt, in increments of $19 million and $40 million with effective interest rates of 4.7% and 4.8%.
8. Commitments and contingencies
a. Commitments
At period end, the Corporation had $73 million of outstanding contractual commitments for the procurement of goods and services in the future.
The Corporation has entered into commodity contracts for the physical purchase of natural gas that qualify as own- use contracts. As at December 31, 2017 own-use natural gas derivative instruments had the following notional values and maturities for the next five years:
(millions)
2018
2019
2020
2021
2022
Total
Own-use physical natural gas contracts
Notional value
$
(42)
$
(62)
$
(66)
$
(62)
$
(44)
$
(276)
Notional value - estimated undiscounted net cash outflow
b. Contingencies
The Corporation is involved in litigation resulting from the 2014 natural gas incident in the community of Regina Beach, Saskatchewan. The Corporation does not expect the outcomes to result in any material financial impact.
9. Unrealized market value adjustments
For the Three Months Ended December 31
For the Nine Months Ended December 31
2017
2016
2017
2016
(millions)
Change in fair value of debt retirement funds
$
-
$
(5)
$
-
$
(1)
Change in fair value of natural gas derivative instruments Change in revaluation of natural gas in storage to net realizable value
10
18
16
70
-
13
(7)
27
$
10
$
26
$
9
$
96
23
2017-18 THIRD QUARTER REPORT
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