7. Commitments and contingencies (continued)
a. Commitments (continued)
At period end, the Corporation had $117 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, 2018 own-use natural gas derivative instruments had the following notional values and maturities for the next five years:
(millions)
2019
2020
2021
2022
2023
Total
Own-use physical natural gas contracts
Notional value
$
(16)
$
(62)
$
(65)
$
(61)
$
(44)
$
(248)
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.
8. Unrealized market value adjustments
For the Three Months Ended December 31
For the Nine Months Ended December 31
2018
2017
2018
2017
(millions)
Change in fair value of natural gas derivative instruments
$
12
$
10
$
13 14
$
14
Change in revaluation of natural gas in storage to net realizable value
(2)
-
(7)
$
10
$
10
$
27
$
7
9. Natural gas sales and purchases
For the Three Months Ended December 31 2018 2017 Asset Asset
Commodity Optimization Total
(millions)
Commodity Optimization Total
Natural gas sales Natural gas sales to commodity customers
$
70
$
-
$
70
$
81
$
-
$
81
Realized on natural gas derivative instruments
-
54
54
-
66
66
Change in fair value of natural gas derivative instruments
-
6
6
-
(4)
(4)
70
60
130
81
62
143
Natural gas purchases Realized on natural gas derivative instruments
(53)
(46)
(99)
(65)
(60)
(125)
Change in fair value of natural gas derivative instruments Change in revaluation of natural gas in storage to net realizable value
(5)
11
6
(7)
21
14
-
(2)
(2)
-
-
-
(58)
(37)
(95)
(72)
(39)
(111)
$
12
$
23
$
35
$
9
$
23
$
32
25
2018-19 THIRD QUARTER REPORT
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