v3.26.1
Investments
 12 Months Ended
Dec. 31, 2025
EBP 001  
EBP, Investment, Fair Value and NAV [Line Items]  
Investments Investments
Participants direct the investment of their account balances into a broad range of investment securities offered by the Plan. Refer to Note 1, Description of plan, for additional information. Investment securities are exposed to various risks, such as counterparty credit risk, liquidity risk and market risk. Due to the level of risk associated with certain investment securities and the level of uncertainty related to changes in value of these investments, it is reasonably possible that changes in the values of investment securities may occur in the near term and that such changes could materially affect participant account balances and the amounts reported in the financial statements.
The Plan offers alternatives that may mitigate participant risks, including the opportunity to diversify investments across multiple participant-directed fund elections including active and passively managed funds covering multiple asset classes. Additionally, the investments within each participant-directed fund election are further diversified into various financial instruments, with the exception of the TC Energy Stock Fund, which invests in securities of a single issuer.
The Plan’s exposure to credit loss in the event of nonperformance of investments is limited to the carrying value of such instruments. The Plan’s concentrations of credit risk, interest rate risk and market risk are dictated by the Plan’s provisions as well as those of ERISA and the participants’ investment preference.
Fair Value Hierarchy
The Plan’s financial assets and liabilities recorded at fair value have been categorized into three levels based on a fair value hierarchy. In Level I, the fair value of assets and liabilities is determined by reference to quoted prices in active markets for identical assets and liabilities. In Level II, determination of the fair value of assets and liabilities includes valuations using inputs, other than quoted prices, for which all significant inputs are observable, directly or indirectly. This category includes fair value determined using valuation techniques, such as option pricing models and extrapolation using observable inputs. In Level III, determination of the fair value of assets and liabilities is based on inputs that are not readily observable and are significant to the overall fair value measurement. There were no Level II or Level III investments or transfers between levels in 2025 or 2024.
Interest bearing cash: Stated at cost which approximates fair value.
Common stock and exchange-traded funds: Valued at the closing price reported on the New York Stock Exchange.
Mutual funds: Valued at the daily closing price reported by the fund. Mutual funds held by the Plan are open end mutual funds that are registered with the Securities and Exchange Commission. These funds are required to publish their daily net asset value and transact at that price. The mutual funds held by the Plan are deemed to be actively traded.
Participant directed brokerage account: Consists of mutual funds, exchange-traded funds and interest bearing cash.
Common collective trusts: Common collective trusts hold underlying investments that have prices which are derived from quoted prices in active markets. The fair value of the Plan's interest in these funds is based on the funds' daily net asset value (NAV), which is considered to be the best approximation of fair value. The funds’ underlying assets are principally short-term money market funds, marketable equities and fixed income securities.
Units held in common collective trusts are valued at the unit value as reported by the investment managers as of December 31, 2025 and 2024. Participants are allowed to redeem units of common collective trusts held by the Plan on a daily basis; however, the Plan is subject to a twelve-month redemption notice period for the Mellon Stable Value Fund. There are no unfunded commitments.
The method described above for common collective trusts may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Plan’s valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.
The following tables set forth, by level within the fair value hierarchy, the Plan’s investment assets at fair value as of December 31, 2025 and 2024. As required, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:
Fair Value Measurements at December 31, 2025
(thousands of U.S. dollars)TotalLevel ILevel IILevel III
Other1
Interest bearing cash9 9 — — — 
Mutual funds
183,029 183,029 — — — 
Participant directed brokerage account14,541 14,541 — — — 
Common collective trusts
1,083,323 — — — 1,083,323 
TC Energy common stock11,733 11,733 — — — 
South Bow common stock990 990 — — — 
Total1,293,625 210,302 — — 1,083,323 
1Fair value is measured using net asset value as a practical expedient, and is therefore excluded from the fair value hierarchy.

Fair Value Measurements at December 31, 2024
(thousands of U.S. dollars)TotalLevel ILevel IILevel III
Other1
Interest bearing cash8 8 — — — 
Mutual funds2
172,371 172,371 — — — 
Participant directed brokerage account2,418 2,418 — — — 
Common collective trusts2
920,741 — — — 920,741 
TC Energy common stock10,494 10,494 — — — 
South Bow common stock1,022 1,022 — — — 
Total1,107,054 186,313 — — 920,741 
1Fair value is measured using net asset value as a practical expedient, and is therefore excluded from the fair value hierarchy.
2In 2024, the Fidelity® 500 Index Fund, Fidelity® Extended Market Index Fund, and Vanguard Total International Stock Index Fund were replaced with other common collective trusts.