25. Commitments and contingencies:

Commitments

Sale agreement

EWU has entered into an agreement of sale with a close date of June 30, 2020 for the Ouellette Avenue corporate head office. Effective July 1, 2020, all corporate functions will be relocated to the operations centre located at 4545 Rhodes Drive, Windsor, Ontario.

Contingencies

General

From time to time, the Corporation is involved in various litigation matters arising in the ordinary course of its business. The Corporation has no reason to believe that the disposition of any such current matter could reasonably be expected to have a materially adverse impact on the Corporation's financial position, results of operations or its ability to carry on any of its business activities.

General liability insurance

The Corporation is a member of the Municipal Electrical Association Reciprocal Insurance Exchange (“MEARIE”), a self-insurance plan that pools the liability risks of all the Municipal Electric Utilities in Ontario. Members of MEARIE would be assessed on a pro-rata basis should losses be experienced by MEARIE for the years in which the Corporation was a member.

To December 31, 2019, the Corporation has not been made aware of any additional assessments that have not been accrued.

26. Regulatory assets and liabilities:

Under IFRS, there is no recognition of regulatory assets or liabilities, and therefore, the impacts of these transactions are reflected on the consolidated statement of income, as applicable. As a result of not recognizing rate-regulated assets and liabilities, the effect was to increase (decrease) comprehensive income as follows: