Notes to the Consolidated Financial Statements
The Corporation has also posted a $15 million (2020 - $15 million) letter of credit with ICE NGX as security for natural gas purchases and sales conducted by the Corporation on the ICE NGX natural gas exchange in Alberta. ICE NGX may draw upon the letter of credit if the Corporation fails to make timely payment for, or delivery of, natural gas as per the related contract. In addition to the above, the Corporation has posted a Parental Guarantee Agreement with Many Islands Pipe Lines (Canada) Limited (MIPL), one of its subsidiaries, in the amount of $200 million. Guaranteed funds are for any amounts that may be due by MIPL under the Canadian Energy Regulator Act. d. Credit risk Credit risk is the risk of financial loss if a customer or counterparty to a financial or derivative instrument fails to meet its contractual obligations. The Corporation is exposed to credit risk through cash, trade and other receivables, debt retirement funds and derivative instrument assets. Credit risk related to cash and debt retirement funds is minimized by dealing with institutions that have strong credit ratings and holding highly-rated financial securities. The Corporation extends credit to its customers in the normal course of business and is at risk of loss in the event of non-performance by counterparties on certain of the financial and derivative instruments. To reduce its credit risk, the Corporation has established policies and procedures to monitor and limit the amount of credit extended to its customers and counterparties and may require letters of credit and other forms of security. As at March 31, 2021, the maximum credit exposure to a single counterparty is $8 million (2020 - $6 million). The carrying amount of financial and derivative assets represents the maximum credit exposure as follows:
(millions)
2021
2020
$
-
Cash
$
1
165 136
Trade and other receivables
155 136
Debt retirement funds
17
Fair value of derivative instrument assets
15
$
318
$
307
At March 31, 2021, the exposure to credit risk for trade receivables by type of customer was as follows:
(millions)
2021
2020
$
100
Distribution customers
$
89 31
31
Transmission and storage customers
4
Asset optimization customers
7
30
Other customers
28
$
165
Trade and other receivables
$
155
10. ASSETS FOR HELD SALE As at March 31, 2021, a non-current asset was classified as held for sale within the consolidated statement of financial position. During 2020-21 the Corporation committed to a plan to sell land and building assets within the next 12-month period. The assets are measured at carrying amount, which is also equal to their fair value less costs to sell and were no longer depreciated. The carrying amount of the land and building assets held for sale as at year end was $4 million.
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