SaskEnergy sees increased demand
Crown corporation made $66 million net profit in 2019-2020 fiscal year
July 8, 2020, 11:37 am
SaskEnergy saw increased demand in 2019-2020, including threel consecutive record days for natural gas demand.
In 2019-20, demand from SaskEnergy’s industrial transmission customers increased for the fifth straight year and contributed to the corporation’s highest-ever level of transportation and storage revenue.
In addition, the record for customers’ daily natural gas consumption in the province was broken on three consecutive days, with a peak of 1.55 Petajoules on January 15, 2020.
SaskEnergy invested $330 million to expand natural gas storage and delivery capacity for customers throughout Saskatchewan.
While investing in system capacity, safety and reliability, SaskEnergy decreased its commodity rate to reflect the low natural gas price environment, which resulted in the lowest commodity rate in 20 years for its customers.
Combined with its delivery rate, SaskEnergy’s total residential gas utility rate is the third-lowest in Canada.
“SaskEnergy continues to deliver value to its customers and achieve strong results in safety and fiscal management,” Minister Responsible for SaskEnergy Bronwyn Eyre said.
“The corporation has attracted 2,500 new distribution customers, and its overall customer base is expected to reach 400,000 in 2020-21. SaskEnergy is well-positioned to meet the province’s natural gas requirements, and its continued investment in infrastructure will help foster our province’s economic recovery.”
In 2019, SaskEnergy’s Customer Connect initiative received the first-ever Michael Mulcahy Award for Excellence in Customer Care, Innovation and Service from the Canadian Gas Association (CGA). In June 2020, the CGA once again recognized SaskEnergy with this award for its Tune-Up Assistance Program, which assists low-income individuals and families with furnace maintenance in order to reduce costly repairs, increase efficiency and help their energy dollars go further. In addition, the program raises awareness about the importance of carbon monoxide (CO) detection.
“SaskEnergy continues to demonstrate its commitment to its customers and to enhancing the quality of life for Saskatchewan residents,” Eyre said.
“In 2019-20, SaskEnergy also provided more than $1 million in rebates to residential and commercial customers who installed energy efficient natural gas furnaces and heating systems.”
SaskEnergy recorded income before unrealized market value adjustments of $66 million in 2019-20. Based on the income before unrealized market value adjustments, the corporation declared a dividend of $24 million to the Government of Saskatchewan.
Other 2019-20 operational highlights include:
Completing a new 62-kilometre South Saskatoon transmission gas line project, which more than doubled natural gas capacity to the east side of the city, to meet the increased demand for natural gas in Saskatoon and surrounding areas;
Investing $111 million in safety and integrity programs across the province;
Distributing 1,000 CO alarms in communities with higher numbers of CO incidents;
Reaching a five-year high of 91 per cent for overall residential customer satisfaction;
Signing an Indigenous Engagement Charter to strengthen relationships with Indigenous peoples, businesses, and communities;
Providing nearly $1 million in rebates to residential and commercial customers who installed energy efficient natural gas furnaces and heating systems;
Supporting expanded customer operations in potash and enhanced oil recovery; and
Continuing to work on efficiency gains, which resulted in $3.3 million in cost reductions throughout 2019-20, bringing efficiency savings to more than $55 million since 2009.