NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
15. FINANCE LEASE OBLIGATION
(millions)
2019
2018
$
9 (1) 8 (3)
Total future minimum lease payments Less: Future finance charges on finance lease Present value of finance lease obligation Less: Current portion of finance lease obligation
$
12
(1)
11
(2)
$
5 $
9
As at March 31, 2019, scheduled future minimum lease payments and the present value of the finance lease obligation are as follows for the next five fiscal years:
(millions)
2020
2021
2022
2023
2024
Future minimum lease payments
$ $
3 $ 3 $
2 $ 2 $
2 $ 1 $
1 $ 1 $
1 1
Present value of finance lease obligation
16. PROVISIONS
(millions)
2019
2018
$
128 65
Balance, beginning of year Provisions made Provisions settled Change in discount rate Unwinding of discount
$
127 6
(10) 13 4
(5) (3) 3
17. COMMITMENTS AND CONTINGENCIES a. Commitments As at March 31, 2019, the Corporation had $79 million (2018 - $83 million) of outstanding contractual commitments for the procurement of goods and services in the future. During the period, the Corporation entered into commodity contracts for the physical purchase of natural gas that qualify as own-use contracts. As at March 31, 2019, own-use natural gas derivative instruments had the following notional values and maturities for the next five fiscal years: Balance, end of year 128 The Corporation has estimated the future cost of decommissioning certain natural gas facilities. For the purposes of estimating the fair value of these decommissioning obligations, it was assumed that the costs will be incurred between April 1, 2019 and March 31, 2109. The undiscounted cash flows required to settle the obligations total $469 million (2018 - $318 million). Discount rates between 1.9 per cent and 2.3 per cent were used to calculate the carrying amount of the obligation (2018 – 1.3 per cent and 2.4 per cent). No funds have been set aside by the Corporation to settle these obligations. 200 $ $
(millions)
2020
2021
2022
2023
2024
Total
OWN-USE PHYSICAL NATURAL GAS CONTRACTS Notional value
(71) $
(358)
$
(69) $
(74) $
(73) $
(71) $
Notional value – estimated undiscounted cash outflow
74
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