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Enbridge Energy Management L L C (EEQ) Inactive 10-Q2 Nov 182018 Q3 Quarterly reportFinancial data

Company Profile

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
Document And Entity Information - shares	Sep. 30, 2018	Oct. 30, 2018
Document And Entity Information [Abstract]
Entity Registrant Name	ENBRIDGE ENERGY MANAGEMENT L L C
Entity Central Index Key	1,173,911
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Trading Symbol	EEQ
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		98,611,093
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3

STATEMENTS OF INCOME

STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Statement [Abstract]
Equity loss from investment in Enbridge Energy Partners, L.P.	$ (1.9)	$ (2.5)	$ (6)	$ (7.5)
Loss before income taxes	(1.9)	(2.5)	(6)	(7.5)
Income tax benefit	0.6	0.8	1.9	2.4
Net loss	$ (1.3)	$ (1.7)	$ (4.1)	$ (5.1)
Net loss per share, (basic and diluted) (in dollars per share)	$ (0.01)	$ (0.02)	$ (0.04)	$ (0.06)
Weighted average shares outstanding (in shares)	97.1	86.7	93.9	84.8
Distribution paid per share (in dollars per share)	$ 0.350	$ 0.350	$ 1.050	$ 1.283

STATEMENTS OF COMPREHENSIVE INC

STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		9 Months Ended
STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Statement of Comprehensive Income [Abstract]
Net loss	$ (1.3)	$ (1.7)	$ (4.1)	$ (5.1)
Equity in other comprehensive income of Enbridge Energy Partners, L.P., net of tax benefit of $0.6, $0.8, $1.9 and $2.4, respectively	1.3	1.7	4.1	5.1
Comprehensive income	$ 0	$ 0	$ 0	$ 0

STATEMENTS OF COMPREHENSIVE I_2

STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Statement of Comprehensive Income [Abstract]
Other comprehensive income (loss), tax expense (benefit)	$ 0.6	$ 0.8	$ 1.9	$ 2.4

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	Sep. 30, 2018	Sep. 30, 2017
Operating activities:
Net loss	$ (4.1)	$ (5.1)
Adjustments to reconcile net loss to net cash used in operating activities:
Loss from equity investment in Enbridge Energy Partners, L.P.	6	7.5
Due from affiliates	(0.2)	0
Deferred income tax benefit	(1.9)	(2.4)
Net cash used in operating activities	(0.2)	0
Investing activities:
Net cash used in investing activities	0	0
Financing activities:
Net cash provided by financing activities	0	0
Decrease in cash and cash equivalents	(0.2)	0
Cash and cash equivalents at beginning of year	0.8	0.8
Cash and cash equivalents at end of period	$ 0.6	$ 0.8

STATEMENTS OF FINANCIAL POSITIO

STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
ASSETS
Cash	$ 0.6	$ 0.8
Due from affiliates	0.2	0
Total assets	0.8	0.8
Shareholders' equity
Voting shares - unlimited authorized; (7.4 and 6.8 issued and outstanding at September 30, 2018 and December 31, 2017, respectively)	0	0
Listed Shares - unlimited authorized; (98.6 and 89.8 issued and outstanding at September 30, 2018 and December 31, 2017, respectively)	1,857.7	1,760.7
Accumulated deficit	(1,833.5)	(1,732.4)
Accumulated other comprehensive loss	(23.4)	(27.5)
Total liabilities and shareholders’ equity	$ 0.8	$ 0.8

STATEMENTS OF FINANCIAL POSIT_2

STATEMENTS OF FINANCIAL POSITION (Parenthetical) - shares	Sep. 30, 2018	Dec. 31, 2017
Voting Shares [Member]
Issued (in shares)	7.4	6.8
Outstanding (in shares)	7.4	6.8
Listed Shares [Member]
Issued (in shares)	98,600,000	89,800,000
Outstanding (in shares)	98,600,000	89,800,000

STATEMENTS OF SHAREHOLDERS' EQU

STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Millions	Total	Accumulated deficit [Member]	Accumulated other comprehensive loss [Member]	Listed Shares [Member]
Beginning balance at Dec. 31, 2016	$ 0.8	$ (1,565.6)	$ (56.5)	$ 1,622.9
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(5.1)	(5.1)
Share distributions	0	(107.1)		107.1
Equity in other comprehensive income of Enbridge Energy Partners, L.P.	5.1		5.1
Ending balance at Sep. 30, 2017	0.8	(1,677.8)	(51.4)	1,730
Beginning balance at Dec. 31, 2017	0.8	(1,732.4)	(27.5)	1,760.7
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(4.1)	(4.1)
Share distributions	0	(97)		97
Equity in other comprehensive income of Enbridge Energy Partners, L.P.	4.1		4.1
Ending balance at Sep. 30, 2018	$ 0.8	$ (1,833.5)	$ (23.4)	$ 1,857.7

BUSINESS OVERVIEW

BUSINESS OVERVIEW	9 Months Ended
BUSINESS OVERVIEW	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BUSINESS OVERVIEW	1. BUSINESS OVERVIEW The terms “we,” “our,” “us” and “Enbridge Energy Management” as used in this report refer collectively to Enbridge Energy Management, L.L.C. unless the context suggests otherwise. General Business Description We are a limited partner of Enbridge Energy Partners, L.P., (the Partnership), through our ownership of i-units, a special class of the Partnership’s limited partner interests. Under a delegation of control agreement among us, the Partnership and its general partner, Enbridge Energy Company, Inc., (the General Partner), we manage the Partnership’s business and affairs. The General Partner is an indirect, wholly-owned subsidiary of Enbridge Inc. (Enbridge), an energy infrastructure company based in Calgary, Alberta, Canada. Basis of Presentation The accompanying unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (U.S. GAAP), for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. They do not include all the information and notes required by U.S. GAAP for annual financial statements and should therefore be read in conjunction with our annual financial statements and notes presented in our Annual Report on Form 10-K for the year ended December 31, 2017. In the opinion of management, the interim financial statements contain all adjustments, consisting only of normal recurring adjustments, necessary to present fairly our financial position, results of operations and cash flows for the interim periods reported. These interim financial statements follow the same significant accounting policies as those included in our annual financial statements for the year ended December 31, 2017.

CHANGES IN ACCOUNTING POLICIES

CHANGES IN ACCOUNTING POLICIES	9 Months Ended
CHANGES IN ACCOUNTING POLICIES	Sep. 30, 2018
Accounting Policies [Abstract]
CHANGES IN ACCOUNTING POLICIES	2. CHANGES IN ACCOUNTING POLICIES There were no significant accounting pronouncements issued during the nine months ended September 30, 2018 , that had a material impact on our results of operations, financial position or cash flows.

INCOME TAXES

INCOME TAXES	9 Months Ended
INCOME TAXES	Sep. 30, 2018
Income Tax Disclosure [Abstract]
INCOME TAXES	3. INCOME TAXES The terms of the i-units provide that the units owned by us will not be allocated income, gain, loss or deductions of the Partnership for tax purposes until such time that we dispose of our investment in the Partnership. As a result, actual realization of any long-term deferred income tax asset or liability would only occur upon liquidation of our investment in the Partnership. Based on the estimates of our future operating income included in our forecasts, including curing impacts, we have concluded that it is not more likely than not that our deferred tax assets will be realized. As a result, we continue to maintain a full valuation allowance on those tax assets as of September 30, 2018 . The effective income tax rates are presented in the following table: Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (unaudited; in millions except for tax rate amounts) Loss before income taxes $ (1.9 ) $ (2.5 ) $ (6.0 ) $ (7.5 ) Income tax benefit (1) 0.6 0.8 1.9 2.4 Effective income tax rate 31.6 % 32.0 % 31.7 % 32.0 % _____________________ (1) Amortization of accumulated other comprehensive income into earnings is recorded before tax to recognize the related tax benefit. Recognition of the tax benefit in earnings does not impact the balance of the deferred tax asset and associated full valuation allowance, which was previously recorded when the losses were reflected in other comprehensive income.

CONTINGENCIES

CONTINGENCIES	9 Months Ended
CONTINGENCIES	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
CONTINGENCIES	4. CONTINGENCIES We are a participant in various legal proceedings arising in the ordinary course of business. Some of these proceedings are covered, in whole or in part, by insurance. We believe that the outcome of all these proceedings will not, individually or in the aggregate, have a material adverse effect on our financial condition.

SUMMARIZED FINANCIAL INFORMATIO

SUMMARIZED FINANCIAL INFORMATION FOR ENBRIDGE ENERGY PARTNERS, L.P.	9 Months Ended
	Sep. 30, 2018
Equity Method Investment, Summarized Financial Information [Abstract]
SUMMARIZED FINANCIAL INFORMATION FOR ENBRIDGE ENERGY PARTNERS, L.P.	5. SUMMARIZED FINANCIAL INFORMATION FOR ENBRIDGE ENERGY PARTNERS, L.P. The following table provides summarized financial information of the Partnership: Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (unaudited; in millions) Operating revenues $ 560 $ 616 $ 1,689 $ 1,817 Operating expenses 303 350 955 971 Operating income $ 257 $ 266 $ 734 $ 846 Income from continuing operations $ 207 $ 196 $ 566 $ 607 Net income 207 196 566 550 Noncontrolling interests (103 ) (103 ) (293 ) (262 ) Series 1 preferred unit distributions — — — (29 ) Accretion of discount on Series 1 preferred units — — — (8 ) Net income attributable to Enbridge Energy Partners, L.P. $ 104 $ 93 $ 273 $ 251 Net income attributable to the General Partner (1) (12 ) (11 ) (36 ) (35 ) Net income attributable to common units and i-units (2) $ 92 $ 82 $ 237 $ 216 _____________________ (1) Net income attributable to the General Partner includes net income attributable to the general partner interest as well as to Class F units and Class E units. (2) The Partnership allocates its net income among the General Partner and limited partners using the two-class method in accordance with applicable authoritative accounting guidance. Under the two-class method, the Partnership allocates its net income after noncontrolling interests to the General Partner and limited partners, including us, according to the distribution formula for available cash as set forth in the Partnership Agreement. We owned approximately 21.4% and 19.5% of the Partnership at September 30, 2018 and 2017 , respectively.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
SUBSEQUENT EVENTS	Sep. 30, 2018
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	6. SUBSEQUENT EVENTS Share Distribution On October 24, 2018 , our board of directors declared a share distribution payable on November 14, 2018 , to shareholders of record as of November 7, 2018 , based on the $0.35 per limited partner unit distribution declared by the Partnership. The Partnership’s distribution increases the number of i-units that we own. The amount of this increase is calculated by dividing the cash amount distributed by the Partnership per common unit by the average closing price of one of our Listed Shares on the New York Stock Exchange (NYSE) for the 10 trading day period immediately preceding the ex-dividend date for our shares, multiplied by the number of shares outstanding on the record date. We distribute additional Listed Shares to our shareholders and additional voting shares to the General Partner in respect of these additional i-units.

BUSINESS OVERVIEW (Policies)

BUSINESS OVERVIEW (Policies)	9 Months Ended
BUSINESS OVERVIEW (Policies)	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (U.S. GAAP), for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. They do not include all the information and notes required by U.S. GAAP for annual financial statements and should therefore be read in conjunction with our annual financial statements and notes presented in our Annual Report on Form 10-K for the year ended December 31, 2017. In the opinion of management, the interim financial statements contain all adjustments, consisting only of normal recurring adjustments, necessary to present fairly our financial position, results of operations and cash flows for the interim periods reported. These interim financial statements follow the same significant accounting policies as those included in our annual financial statements for the year ended December 31, 2017.

INCOME TAXES (Tables)

INCOME TAXES (Tables)	9 Months Ended
INCOME TAXES (Tables)	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Schedule of Effective Income Tax Rate Reconciliation	The effective income tax rates are presented in the following table: Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (unaudited; in millions except for tax rate amounts) Loss before income taxes $ (1.9 ) $ (2.5 ) $ (6.0 ) $ (7.5 ) Income tax benefit (1) 0.6 0.8 1.9 2.4 Effective income tax rate 31.6 % 32.0 % 31.7 % 32.0 % _____________________ (1) Amortization of accumulated other comprehensive income into earnings is recorded before tax to recognize the related tax benefit. Recognition of the tax benefit in earnings does not impact the balance of the deferred tax asset and associated full valuation allowance, which was previously recorded when the losses were reflected in other comprehensive income.

SUMMARIZED FINANCIAL INFORMAT_2

SUMMARIZED FINANCIAL INFORMATION FOR ENBRIDGE ENERGY PARTNERS, L.P. (Tables)	9 Months Ended
	Sep. 30, 2018
Equity Method Investment, Summarized Financial Information [Abstract]
Schedule of Summarized Financial Information for the Partnership	The following table provides summarized financial information of the Partnership: Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (unaudited; in millions) Operating revenues $ 560 $ 616 $ 1,689 $ 1,817 Operating expenses 303 350 955 971 Operating income $ 257 $ 266 $ 734 $ 846 Income from continuing operations $ 207 $ 196 $ 566 $ 607 Net income 207 196 566 550 Noncontrolling interests (103 ) (103 ) (293 ) (262 ) Series 1 preferred unit distributions — — — (29 ) Accretion of discount on Series 1 preferred units — — — (8 ) Net income attributable to Enbridge Energy Partners, L.P. $ 104 $ 93 $ 273 $ 251 Net income attributable to the General Partner (1) (12 ) (11 ) (36 ) (35 ) Net income attributable to common units and i-units (2) $ 92 $ 82 $ 237 $ 216 _____________________ (1) Net income attributable to the General Partner includes net income attributable to the general partner interest as well as to Class F units and Class E units. (2) The Partnership allocates its net income among the General Partner and limited partners using the two-class method in accordance with applicable authoritative accounting guidance. Under the two-class method, the Partnership allocates its net income after noncontrolling interests to the General Partner and limited partners, including us, according to the distribution formula for available cash as set forth in the Partnership Agreement.

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
INCOME TAXES (Details) - USD ($) $ in Millions	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Loss before income taxes	$ (1.9)	$ (2.5)	$ (6)	$ (7.5)
Income tax benefit	$ 0.6	$ 0.8	$ 1.9	$ 2.4
Effective income tax rate	31.60%	32.00%	31.70%	32.00%

SUMMARIZED FINANCIAL INFORMAT_3

SUMMARIZED FINANCIAL INFORMATION FOR ENBRIDGE ENERGY PARTNERS, L.P. (Details) - Enbridge Energy Partners LP [Member] - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Operating revenues	$ 560	$ 616	$ 1,689	$ 1,817
Operating expenses	303	350	955	971
Operating income	257	266	734	846
Income from continuing operations	207	196	566	607
Net income	207	196	566	550
Less: Net income attributable to Noncontrolling interest	(103)	(103)	(293)	(262)
Less: Net income attributable to Series 1 preferred unit distributions	0	0	0	(29)
Less: Net income attributable to Accretion of discount on Series 1 preferred units	0	0	0	(8)
Net income attributable to Enbridge Energy Partners, L.P.	104	93	273	251
Net income attributable to the General Partner	(12)	(11)	(36)	(35)
Net income attributable to common units and i-units	$ 92	$ 82	$ 237	$ 216
Percentage of ownership in Partnership	21.40%	19.50%	21.40%	19.50%

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - Subsequent Event [Member]	Oct. 24, 2018$ / shares
Subsequent Event [Line Items]
Distribution Declaration Date	Oct. 24, 2018
Distribution Payment Date	Nov. 14, 2018
Record Date	Nov. 7, 2018
Distribution per Unit of the Partnership (in dollars per share)	$ 0.35
Number of trading days	10 days

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