Employee Benefits
Employee benefit costs of $25 million were $1 million higher than 2019-20 as vacant positions in strategic areas of the business have been filled to continue to meet the Corporation’s current and future business needs. Ongoing efficiency efforts and management of planned overtime and vacancies resulted in a reduction of full time equivalents in other areas partially offsetting these increases.
Operating and Maintenance
Higher transportation on the TC Energy transportation system increased operating and maintenance expenses to $38 million in 2020-21, $1 million higher than in 2019-20. Growing demand for imported natural gas from Alberta is resulting in more natural gas being transported and over greater distances. SaskEnergy was able to mitigate the impact of higher transportation and safety and integrity expenditures through continued efficiency efforts.
Depreciation and Amortization
Balancing safety and system integrity with the growing demand for service continues through 2020-21. Strategic capital investments required to ensure the necessary infrastructure is in place to meet increasing load growth, has increased the capital asset base from the previous year, resulting in increased depreciation and amortization. In 2020-21, depreciation and amortization was $29 million, $3 million higher than the same period in 2019-20.
Net Finance Expense
Net finance expenses were $13 million in 2020-21 and equaled 2019-20 as higher debt retirement fund earnings and lower short-term debt interest expense was fully offset by higher long-term debt interest expense.
2020-21 First Quarter Report
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