UNITED STATES SECURITIES and EXCHANGE COMMISSION Washington, D.C
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________ FORM 10-K _______________________________ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2017 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-10934 _______________________________ ENBRIDGE INC. (Exact Name of Registrant as Specified in Its Charter) _______________________________ Canada None (State or Other Jurisdiction of (I.R.S. Employer Incorporation or Organization) Identification No.) 425 - 1st Street S.W. Calgary, Alberta, Canada T2P 3L8 (Address of Principal Executive Offices) (Zip Code) Registrant’s telephone number, including area code (403) 231-3900 _______________________________ Securities registered pursuant to Section 12(b) of the Act: Title of each class Name of each exchange on which registered Common Shares New York Stock Exchange _______________________________ Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.Yes No Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.Yes No Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.Yes No Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).Yes No Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405) is not contained herein, and will not be contained, to the best of the registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one): Large Accelerated Filer Accelerated Filer Non-Accelerated Filer (Do not check if a smaller reporting company) Smaller reporting company Emerging growth company If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yes No The aggregate market value of the registrant’s common shares held by non-affiliates computed by reference to the price at which the common equity was last sold on June 30, 2017, was approximately US$65,416,118,124. As at February 9, 2018, the registrant had 1,695,190,292 common shares outstanding. DOCUMENTS INCORPORATED BY REFERENCE: Portions of the proxy statement for the 2018 Annual Meeting of Shareholders are incorporated by reference in Part III. 1 Page PART I Item 1. Business 7 Item 1A. Risk Factors 40 Item 1B. Unresolved Staff Comments 48 Item 2. Properties 48 Item 3. Legal Proceedings 48 Item 4. Mine Safety Disclosures 48 PART II Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 49 Item 6. Selected Financial Data 51 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 52 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 101 Item 8. Financial Statements and Supplementary Data 105 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 195 Item 9A. Controls and Procedures 195 Item 9B. Other Information 196 PART III Item 10. Directors, Executive Officers and Corporate Governance 196 Item 11. Executive Compensation 196 Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 196 Item 13. Certain Relationships and Related Transactions, and Director Independence 196 Item 14. Principal Accountant Fees and Services 196 PART IV Item 15. Exhibits and Financial Statement Schedules 197 Item 16. Form 10-K Summary 198 Exhibit Index 198 Signatures 203 2 GLOSSARY AOCI Accumulated other comprehensive income/(loss) ARO Asset retirement obligations ASU Accounting Standards Update BC British Columbia bcf/d Billion cubic feet per day bpd Barrels per day Canadian L3R Program Canadian portion of the Line 3 Replacement Program Canadian Restructuring Plan Transfer of Enbridge's Canadian Liquids Pipelines business, held by EPI and Enbridge Pipelines (Athabasca) Inc., and certain Canadian renewable energy assets to the Fund Group, which was effective on September 1, 2015 CTS Competitive Toll Settlement Dawn Dawn Hub DCP Midstream DCP Midstream, LLC Duke Energy Duke Energy Corporation EaR Earnings-at-Risk EBITDA Earnings before interest, income taxes and depreciation and amortization ECT Enbridge Commercial Trust EEP Enbridge Energy Partners, L.P. EGD Enbridge Gas Distribution Inc. EIPLP Enbridge Income Partners LP EIS Environmental Impact Statement Enbridge Enbridge Inc. ENF Enbridge Income Fund Holdings Inc. EPI Enbridge Pipelines Inc. EUB New Brunswick Energy and Utilities Board FERC Federal Energy Regulatory Commission Flanagan South Flanagan South Pipeline GHG Greenhouse gas HLBV Hypothetical Liquidation at Book Value IDR Incentive Distribution Rights IJT International Joint Tariff IR Plan EGD's Incentive Rate Plan ISO Incentive Stock Options L3R Program Line 3 Replacement Program Lakehead System Lakehead Pipeline System LIBOR London Interbank Offered Rate LMCI Land Matters Consultation Initiative LNG Liquefied natural gas MD&A Management’s Discussion and Analysis MEP Midcoast Energy Partners, L.P. Merger Transaction Combination of Enbridge and Spectra Energy through a stock-for- stock merger transaction which closed on February 27, 2017 MNPUC Minnesota Public Utilities Commission 3 MW Megawatts NEB National Energy Board NGL Natural gas liquids Noverco Noverco Inc. NYSE New York Stock Exchange OCI Other comprehensive income/(loss) OEB Ontario Energy Board OPEB Other postretirement benefit obligations OPEC Organization of Petroleum Exporting Countries PennEast PennEast Pipeline Company LLC ROE Return on equity RSU Restricted Stock Units Sabal Trail Sabal Trail Transmission, LLC Sandpiper Sandpiper Project Seaway Pipeline Seaway Crude Pipeline System Secondary Offering ENF's secondary offering of 17,347,750 ENF common shares to the public on April 18, 2017 SEP Spectra Energy Partners, LP Spectra Energy Spectra Energy Corp TCJA the “Tax Cuts and Jobs Act” Texas Eastern Texas Eastern Transmission, L.P. the Court United States District Court for the District of Columbia the Fund Enbridge Income Fund the Fund Group The Fund, ECT, EIPLP and the subsidiaries and investees of EIPLP TSX Toronto Stock Exchange the Tupper Plants Tupper Main and Tupper West gas plants Union Gas Union Gas Limited U.S. GAAP Generally accepted accounting principles in the United States of America U.S. L3R Program United States portion of the Line 3 Replacement Program Vector Vector Pipeline L.P. VIE Variable interest entities WCSB Western Canadian Sedimentary Basin CONVENTIONS The terms "we", "our", "us" and "Enbridge" as used in this report refer collectively to Enbridge Inc. unless the context suggests otherwise. These terms are used for convenience only and are not intended as a precise description of any separate legal entity within Enbridge. Unless otherwise specified, all dollar amounts are expressed in Canadian dollars, all references to “dollars”, “$” or “C$” are to Canadian dollars and all references to “US$” are to United States dollars. All amounts are provided on a before tax basis, unless otherwise stated. 4 FORWARD-LOOKING INFORMATION Forward-looking information, or forward-looking statements, have been included in this annual report on Form 10-K to provide information about us and our subsidiaries and affiliates, including management’s assessment of Enbridge and its subsidiaries’ future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ‘‘anticipate”, “expect”, “project”, “estimate”, “forecast”, “plan”, “intend”, “target”, “believe”, “likely” and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to the following: expected earnings before interest, income taxes and depreciation and amortization (EBITDA); expected earnings/(loss); expected earnings/(loss) per share; expected future cash flows; expected performance of the Liquids Pipelines, Gas Transmission and Midstream,