Notes to the Consolidated Financial Statements
The weighted average discount rate applied to computer leases and vehicle leases is 4.0 per cent based on the rates implicit in the agreements. The weighted average discount rate applied to building leases is 4.0 per cent based on the Corporation’s incremental borrowing rate. As at March 31, 2025, scheduled future minimum lease payments and the present value of the finance lease obligation are as follows for the next five fiscal years: (millions) 2026 2027 2028 2029 2030 Future minimum lease payments $ 5 $ 3 $ 3 $ 2 $ 1 Present value of lease liability $ 5 $ 4 $ 2 $ 1 $ 1
16. Provisions (millions)
2025
2024
$
158 $
Balance, beginning of year
158
1
Provisions made Provisions settled
-
(19)
(13)
27
Change in assumptions Unwinding of discount Balance, end of year
7 6
7
174
158
(9)
Less: Current portion of provisions
(8)
$
165 $
150
The Corporation has estimated the future cost of decommissioning certain natural gas facilities. Revised estimates for decommissioning storage facilities are based on internal information from current projects and insights from internal geological and storage engineering professionals, which have led to changes in the assumptions regarding future retirement costs. For the purposes of estimating the fair value of these decommissioning obligations, it is assumed that the costs will be incurred between April 1, 2025 and March 31, 2114. The undiscounted cash flows required to settle the obligations total $791 million (2024 - $659 million). Discount rates between nil per cent and 4.3 per cent were used to calculate the carrying amount of the obligation (2024 - nil per cent and 4.8 per cent). No funds have been set aside by the Corporation to settle these obligations. 17. Long-Term Debt (millions) 2025 2024 Balance, beginning of year $ 1,767 $ 1,647 Proceeds 195 120 Repayments (100) - Balance, end of year 1,862 1,767 Less: Current portion of long-term debt (75) (100) $ 1,787 $ 1,667
80
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