2014 SaskEnergy Annual Report
Environmental, Social and Governance Report
2023-24
On the Cover
As we meet the demand for energy in Saskatchewan, SaskEnergy focuses on balancing our emissions reduction efforts with our ability to provide affordable natural gas service to our customers. We support Saskatchewan’s economic prosperity by investing in the communities we serve and by creating meaningful relationships with stakeholders, Indigenous groups and customers. At SaskEnergy, we recognize that our employees drive our success and we strive to provide them with a safe and engaging work environment. We are committed to acting in the best interests of the public and to investing in a workforce that meets customer expectations.
Land acknowledgement We acknowledge that we work and live on the traditional lands of First Nations and Métis peoples. We respect and honour the Treaties and are committed to moving forward with Indigenous Nations in the spirit of reconciliation and collaboration.
2023-24 ESG Report
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President’s Message
4
About SaskEnergy
5
Table of Contents
Our Approach to ESG
7
2023-24 Highlights
8
Environment
9
Prosperity
21
Our People
32
Governance
41
Looking Ahead
44
Measures and Standards: Key Indicators
45
2023-24 ESG Report
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Measures and Standards: Key Indicators
2023-24 Highlights
Looking Ahead
Our Approach to ESG
President’s Message
About SaskEnergy
Environment
Prosperity
Our People
Governance
President’s Message On behalf of SaskEnergy, I am pleased to present our 2023-24 Environmental, Social and Governance (ESG) Report. This report provides an overview of SaskEnergy’s continued progress on ESG principles, including environmental stewardship, supporting our customers and the communities we serve, attracting and retaining the people that allow us to meet Saskatchewan’s energy needs, and demonstrating socially conscious business practices. In addition to the initiatives and actions highlighted, we provide our results and an outlook on the key indicators we have established as our measures and standards. Three years ago, SaskEnergy made a commitment to reduce our emissions from operations by 35 per cent by 2030, and I am proud to share that we are already halfway to meeting that goal. Several of this year’s initiatives and projects helped us reach this milestone, such as large-scale solar power systems at three additional sites, further installations of technology to reduce instances of vent gas at our compressor stations, and equipment upgrades that provide instant emissions reductions. At the same time, SaskEnergy is committed to assisting our customers in reducing their energy use, which decreases their end-use emissions and saves them money. This year, we introduced three new energy efficiency programs for customers, including a rebate to assist residents on First Nations throughout Saskatchewan in replacing old gas furnaces with new, high-efficiency models. Through our energy efficiency programs, nearly 8,000 customers received $3.9 million in rebates in 2023-24, allowing them to reduce emissions by 19,200 tonnes of carbon dioxide equivalent. As SaskEnergy continues to meet the increasing demand for natural gas in our province, we are also dedicated to strengthening the economy and investing in the communities we serve. In 2023-24, we purchased $258 million in goods and services from local vendors, which accounted for 65 per cent of our procurement spending.
In addition, $31.7 million in contracts were awarded to Saskatchewan businesses with Indigenous ownership or Indigenous content. As a Crown corporation, we are also proud to support local communities and charitable organizations. In 2023-24, SaskEnergy supported 871 programs and events in 360 communities across Saskatchewan, including investment in environmental stewardship, natural gas education and safety, and Indigenous engagement activities. Recognizing the cost pressures that consumers are facing, we are committed to providing our customers with competitive and stable rates. Our ability to deliver affordable energy is one of our strategic imperatives and our average annual residential natural gas bill was the second lowest in the country at the end of 2023-24. Moving forward, we will continue to focus on operational efficiencies and financial stewardship to reduce costs. We also provide value to our customers by increasing their ease of service and were pleased to make several service enhancements during 2023-24. These included new features for landlords in SaskEnergy’s Online Account, the launch of a new mobile application, and offering two-hour arrival windows for service appointments, such as meter exchanges, for customers throughout the province. At SaskEnergy, our progress on ESG principles also means that we act in the best interests of the public. ESG principles are integrated into our governance framework, our approach to risk management, and in our business strategy. From our Board of Directors’ oversight of the Corporation to our corporate culture and how we interact with our fellow employees and our customers, SaskEnergy is focused on actions that reflect our values of safety, integrity, stewardship and teamwork. I see these values demonstrated by our provincial team of employees daily, and it is important to our company that we can provide our people with a safe, inclusive and engaging workplace that inspires them to perform at their best. Our employees drive SaskEnergy’s success, and I thank each of them for their dedication to our province and our company.
Mark Guillet, K.C. President and Chief Executive Officer
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Measures and Standards: Key Indicators
2023-24 Highlights
Looking Ahead
Our Approach to ESG
President’s Message
About SaskEnergy
Environment
Prosperity
Our People
Governance
About SaskEnergy Saskatchewan residents have relied on SaskEnergy’s natural gas system for more than 70 years. Our rural gas line network has a broader reach than any other gas distribution utility in Canada. As a Crown corporation, we recognize our role in meeting the province’s energy needs and in contributing to the economic prosperity of Saskatchewan communities. Through our nearly 88,000 kilometres of transmission and distribution lines, it is our mission to safely and responsibly deliver natural gas to our residential, farm, business and industrial customers. Environmental responsibility is a key focus of our business. SaskEnergy is committed to reducing our emissions from operations by 35 per cent by 2030 and to supporting our customers in reducing their end-use emissions. As we work toward our vision of providing critical energy to support a prosperous Saskatchewan, we are guided by our two strategic imperatives — affordability and environmental responsibility.
Community Aspiration Environmental sustainability and economic prosperity for future generations of Saskatchewan. Vision Providing critical energy to support a prosperous Saskatchewan. Mission SaskEnergy delivers natural gas and energy solutions responsibly to the residents, businesses and industries of Saskatchewan.
Values
We commit to our personal safety, the safety of our team and the public. Safety
We are accountable for our decisions, our actions, and the results. Integrity
· Lowest cost energy source in Saskatchewan · Stable and competitive rates · Top quartile of the lowest delivery rates across the country Affordability
· Responsible energy company · Reduce our operational emissions by 25 per cent by 2030 · Support customers in reducing emissions by 170,000 TCO 2 e by 2030 Environmental Responsibility
We align resources towards the greatest and most responsible impact. Stewardship
We collaborate, respect, and trust one another. We are diverse and inclusive. Teamwork
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Measures and Standards: Key Indicators
2023-24 Highlights
Looking Ahead
Our Approach to ESG
President’s Message
About SaskEnergy
Environment
Prosperity
Our People
Governance
At a Glance
411,000+ residential, commercial and industrial customers
1,200+ employees working in more than 50 locations across the province
$21 million dividend declared to Crown Investments Corporation in 2023-24
$3.6 billion total assets
15,338 kilometres of transmission lines
72,232 kilometres of distribution lines
86% overall residential customer satisfaction rating
More than 99.99% reliable service
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Measures and Standards: Key Indicators
2023-24 Highlights
Looking Ahead
Our Approach to ESG
President’s Message
About SaskEnergy
Environment
Prosperity
Our People
Governance
Our Approach to ESG
Focus Area Description
Key Indicators
SaskEnergy’s vision is to provide critical energy to support a prosperous Saskatchewan. This means delivering safe, reliable and affordable energy to our customers — today and for years to come — while advancing our environmental, social and governance (ESG) performance. As a Crown corporation that serves the people of our province, we contribute to the ESG priorities of the Government of Saskatchewan. Our commitment to environmental responsibility is also aligned with the policy direction of the Government’s Prairie Resilience: A Made-in- Saskatchewan Climate Change Strategy , which is aimed at reducing greenhouse gas (GHG) emissions in the province. ESG principles are integrated in our governance framework, our approach to risk management, and how we conduct our day-to-day operations. SaskEnergy’s commitment to environmental responsibility includes reducing our own emissions from operations while assisting our customers in minimizing their carbon footprint. Our relationships with customers, communities and Indigenous groups are key as we support economic prosperity for future generations. SaskEnergy’s employees drive the success of our organization, and we strive for a work environment where all ideas are valued, respected and welcomed. Reporting on performance SaskEnergy works to continuously improve and mature our reporting processes as public expectations and ESG reporting standards and frameworks evolve. This year, we collaborated with our shareholder and peer Crown corporations to review existing ESG standards and frameworks, as well as to monitor the development of Canadian and international ESG disclosure standards. Looking ahead, we will continue our collaborative efforts as we refresh our material topics and the measures we are tracking. Performance within our ESG framework is currently measured through 15 key indicators. The indicators are aligned to, and reference, the Global Reporting Initiative (GRI) standards, as well as provincial and corporate goals. Annual targets for performance have been set to demonstrate our commitment to continuously advancing in our ESG journey.
· Cumulative GHG emissions reduction relative to 2019 baseline (tonnes CO 2 e) · Incremental customer GHG emissions savings from natural gas conservation programs (tonnes CO 2 e/year) · Spills and releases (reportable) · Customer satisfaction – SaskEnergy · Customer satisfaction – TransGas · Average safety service response time (minutes) · Unplanned service disruptions – distribution · First Responder training · Communities trained · Attendees · Representative workforce · Women on Executive (%) · Women in management roles (%) · Indigenous (%) · Total recordable injuries · Frequency rate · Severity rate · Total annual hours of training per employee
We strive to reduce our impact on all aspects of the environment and are committed to helping our customers reduce their environmental footprint.
Environment
We strengthen Saskatchewan’s economy by investing in the communities where we live and work. SaskEnergy provides customers with reliable and affordable energy, supporting the province’s standard of living. We are committed to providing a safe, inclusive and engaging work environment to attract and retain the people who can meet the environmental and business landscape of tomorrow.
Prosperity
Our People
· Women on Board (%) · Discrimination and harassment incidents
We promote ESG principles through the stewardship of our organization, and in the way we conduct our business.
Governance
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Measures and Standards: Key Indicators
2023-24 Highlights
Looking Ahead
Our Approach to ESG
President’s Message
About SaskEnergy
Environment
Prosperity
Our People
Governance
2023-24 Highlights
8,000 tonnes carbon dioxide equivalent (CO 2 e) year-over-year reduction in greenhouse gas emissions from operations
Progress on our roadmap to 35% by 2030 halfway toward achieving our emissions from operations reduction target
$3.9 million in rebates to residential and commercial customers who made energy efficiency improvements, including to purchase and install high-efficiency heating equipment Investing in our communities supported 871 charitable and non-profit programs and events in 360 communities across Saskatchewan 19,200 tonnes CO 2 e reduction in residential and commercial customer GHG emissions through natural gas conservation programs
$258 million in goods and services purchased from Saskatchewan vendors, making up 65 per cent of procurement spending
$31.7 million in contracts awarded to businesses with Indigenous ownership or Indigenous content
Expanding renewable electricity installed three new ground-mounted solar arrays at facilities in Swift Current, Success and Regina
Top Employer recognized as one of Canada’s Top 100 Employers and one of Saskatchewan’s Top Employers for 2024
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Measures and Standards: Key Indicators
2023-24 Highlights
Looking Ahead
Our Approach to ESG
President’s Message
About SaskEnergy
Environment
Prosperity
Our People
Governance
ENVIRONMENT
SaskEnergy is focused on reducing the impact of our business on the environment.
Our environmental responsibility efforts are aimed at reducing emissions from our operations, supporting customers in lowering their end-use emissions and protecting the local environment, including plant life, wildlife, water bodies, native prairie and species at risk.
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Measures and Standards: Key Indicators
2023-24 Highlights
Looking Ahead
Our Approach to ESG
President’s Message
About SaskEnergy
Environment
Prosperity
Our People
Governance
Providing Critical Energy to Saskatchewan Environmental responsibility is key to SaskEnergy’s long-term corporate sustainability as we meet Saskatchewan’s demand for safe and reliable energy. The actions we take are also important to our customers and to the communities where we operate. We recognize our role, as an energy company, in reducing GHG emissions in our operations, and in assisting our customers to be more energy efficient and reduce their impact on the environment. Roadmap to 35 per cent by 2030 In 2020-21, we set a target to reduce our emissions from operations by 35 per cent, from 2019 levels, by 2030. SaskEnergy’s operational emissions — measured in tonnes of carbon dioxide equivalent (CO 2 e) — include those from our natural gas system as well as company-owned vehicles, and emissions related to heating and powering our offices and facilities. By the end of 2023-24, we are now halfway toward achieving that goal. As we progress on our roadmap to 35 per cent by 2030, SaskEnergy will continue to categorize, prioritize, and execute on projects and activities to address our direct GHG emissions (scope 1 emissions) and our indirect GHG emissions from electricity (scope 2 emissions). These projects and activities are categorized within three priority areas: vent gas reduction, renewable electricity, and optimization.
Vent gas reduction Approximately 25 per cent of our emissions come from venting, whether from gas line maintenance work or through devices that vent gas by design. By reducing vented gas, we can have an impact on overall scope 1 emissions.
Renewable electricity This focus area involves bringing more renewable electricity into our operations. The implementation of renewable electricity is a cost-effective approach to reducing indirect, scope 2 emissions.
Optimization SaskEnergy focuses on optimizing our existing operational practices, and our infrastructure, to reduce GHG emissions. This directly impacts scope 1 emissions from operational activities such as venting, flaring, and combustion.
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Measures and Standards: Key Indicators
2023-24 Highlights
Looking Ahead
Our Approach to ESG
President’s Message
About SaskEnergy
Environment
Prosperity
Our People
Governance
Reducing our emissions from operations In 2023-24, we achieved year-over-year GHG emissions reductions of 8,000 tonnes CO 2 e, which is equivalent to taking more than 1,800 vehicles off the road. Contributing to this result was more efficient and prioritized compressor operation during 2023-24 and vent capture technology that is realizing further emissions reduction benefits. In addition, reported gas line flaring and venting decreased, and improvements to data measurement have resulted in more accurate emissions reporting. Installing emissions reduction devices to capture vent gas and save on fuel costs SaskEnergy has been installing emissions reduction devices on our compressors since 2016. These devices capture vent gas and redirect it into the engine air intake for use as a supplemental fuel source. In addition to the emissions reductions that are achieved through this technology, it also decreases the amount of fuel needed to operate the compressors. SaskEnergy now has 30 compressors outfitted with emissions reduction devices and in 2023-24, the technology resulted in a reduction of more than 4,200 tonnes of CO 2 e emissions and saved nearly $30,000 in fuel costs. Realizing further vent gas emissions reductions through gas conservation As we advance on our roadmap to 35 per cent by 2030, we will focus on vent gas reduction. About 25 per cent of SaskEnergy’s emissions come from venting — the intentional release of gas during maintenance, or a device that vents gas by design. SaskEnergy is focused on a few options for conserving this gas rather than venting or flaring it, which will have a significant positive impact on operational emissions.
INSTRUMENT AIR UPGRADES YIELD INSTANT EMISSIONS REDUCTIONS Traditionally, SaskEnergy’s compressor stations, which help us transport natural gas to homes and businesses across the province, have also used natural gas in the operation of their pneumatic control valves and engine starters. Following an instrument air conversion study in 2022, we are now converting these components at our older compressor stations to run using compressed air rather than natural gas. Because some of these valves continually vent while operating, the ability to have them operate on compressed air results in instant emissions reductions. In 2023-24, we upgraded compressor facilities at Brada and Tantallon to operate using compressed air. It is estimated that these upgrades will result in annual emissions savings of 145 tonnes CO 2 e. All of SaskEnergy’s newer compressor stations are built to use compressed air rather than natural gas.
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Measures and Standards: Key Indicators
2023-24 Highlights
Looking Ahead
Our Approach to ESG
President’s Message
About SaskEnergy
Environment
Prosperity
Our People
Governance
Renewable electricity in our operations Last year, SaskEnergy’s first large-scale solar project was constructed at our town border station (TBS) in south Regina. During 2023-24, we added three additional solar systems at our TBS in north Regina, at our Swift Current Service Centre, and at our Success compressor station. Construction was completed by Indigenous-owned companies Tron Construction and miEnergy, and pipe ceremonies were held as part of these projects. Over the next six years, several other facilities will be converted to generate solar power for the purpose of offsetting our overall power consumption. SaskEnergy has also been installing solar panels at our natural gas pressure reduction stations and compressor sites for more than 10 years. In 2023-24, we installed 85-watt solar panels with seven-day battery capacity at an additional 40 sites. More than 440 sites throughout the province now include solar power and another 50 sites are targeted to have panels installed or upgraded throughout 2024-25. Decreasing electrical consumption at our Regina Service Centre As part of our focus on optimizing our infrastructure to reduce emissions, SaskEnergy continues to pilot energy management software at our Regina Service Centre facility. Through the software, the energy consumption of various electrical and natural gas equipment is monitored and assessed to identify opportunities to further optimize the building’s operations. Since implementation, electricity reductions of 137,257 kilowatt hours (kWh) have been achieved, along with 76,500 cubic feet in natural gas reductions. This has resulted in emissions reductions of 89 tonnes CO 2 e at the facility. Monitoring points for water use were also added during the latter half of 2023-24.
Reducing fugitive emissions through leak detection and repair The incidence of leaks at our above-ground transmission and storage facilities has been significantly reduced since our leak detection and repair (LDAR) program began in 2020. Through the LDAR program, we are surveying our compressor stations and meter stations for leaks numerous times each year. The goal is to cut down on fugitive emissions, which are unintentional gas leaks from our system. Infrared cameras and other detection tools are used to identify leaks, which are then repaired. More than 1,600 leaks have been identified and repaired since the inception of the LDAR program, including 104 leaks that were detected and repaired in 2023-24. Evolving regulatory requirements The evolution of federal and provincial methane regulations will influence our emissions reduction priorities and projects related to the reduction of vent gas and leaks on our system. We’ve adjusted capital project plans in our roadmap to 35 per cent by 2030 to comply with regulatory requirements as we continue to identify and address emissions reductions related to renewable electricity and the optimization of our infrastructure and processes.
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Measures and Standards: Key Indicators
2023-24 Highlights
Looking Ahead
Our Approach to ESG
President’s Message
About SaskEnergy
Environment
Prosperity
Our People
Governance
Solar Installation Lightening Our Emissions in South Regina After a full year of generating power, the solar installation at our town border station in south Regina is proving to be a shining success. While the expectation was that the 176 solar panels would result in the station’s net electrical usage balancing out to zero, the installation has produced solar power in excess of the station’s electricity requirements. During 2023-24, the system produced about 50 per cent more electricity than it used, providing SaskEnergy with a credit of more than 27,000 kWh on our electricity bills. This extra electricity was also in excess of the power that was generated for real-time use at the station. Thanks to the solar installation at the station, emissions reductions of approximately 32 tonnes CO 2 e was achieved in 2023-24 and SaskEnergy was able to realize cost savings on the station’s electricity bills. There was even an eight-month stretch where the monthly bill was zero dollars!
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Measures and Standards: Key Indicators
2023-24 Highlights
Looking Ahead
Our Approach to ESG
President’s Message
About SaskEnergy
Environment
Prosperity
Our People
Governance
Supporting our customers in reducing end-use emissions and energy costs As part of our commitment to environmental responsibility, SaskEnergy assists our customers in reducing their end-use emissions and meeting their environmental goals. Since more than 80 per cent of natural gas-related emissions are created through end-use combustion, a reduction in end-use emissions is an area in which immediate environmental impacts can be made. SaskEnergy’s customer programming supports the installation of high-efficiency equipment, which allows our customers to reduce their energy use and their emissions while also saving money. SaskEnergy also collaborates with organizations such as the Canadian Gas Association (CGA) and the Natural Gas Innovation Fund (NGIF) on emissions reduction initiatives. Leveraging investments in new cost-effective technologies that help customers reduce their emissions and achieve their environmental objectives is a continued focus area. Customer rebate programs SaskEnergy offers a variety of rebate programs for residential and commercial customers to support them in reducing their emissions and lowering their energy costs: · SaskEnergy’s Residential Equipment Replacement Rebate provides rebates for the purchase and installation of qualifying high-efficiency natural gas furnaces, boilers, combi-boilers, heat recovery ventilator systems (HRV), and water heaters. · The Commercial Boiler Rebate helps offset the incremental price of a high-efficiency natural gas condensing boiler over the purchase price of standard-efficiency equipment. · Our Commercial Space & Water Heating Rebate program offers rebates for natural gas furnaces, boilers, tankless and condensing water heaters, and infrared tube heaters in commercial applications. · The Hydronic Additive Rebate for Boilers is for the purchase and installation of eligible hydronic additives for boiler systems, which can increase operational efficiency.
Incremental GHG Savings (tonnes CO ² e/year)
Incremental Savings (GJ/year)
Year
2017-18
38,600
2,400
2018-19
24,300
1,600
2019-20
102,400
6,600
2020-21
128,800
8,300
2021-22
228,400
15,900
2022-23
277,600
19,225
2023-24
266,700
19,200
Over the last seven years, SaskEnergy’s energy efficiency programs have continued to assist our customers in reducing the amount of energy they use, as well as their GHG emissions. Customers who have participated in our energy efficiency programs since 2017-18 are now saving more than 73,000 tonnes CO 2 e emissions per year. This is equivalent to taking 17,000 vehicles off the road. The GHG reductions are a result of high-efficiency gas appliances and include gas use savings as well as emissions reductions from electricity savings.
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Measures and Standards: Key Indicators
2023-24 Highlights
Looking Ahead
Our Approach to ESG
President’s Message
About SaskEnergy
Environment
Prosperity
Our People
Governance
SaskEnergy also introduced three new energy efficiency programs for customers in 2023-24: · The Homes Beyond Code program offers rebates of up to $9,000 for homes that are built at higher energy efficiency levels than what is required by current codes. · Our First Nations Furnace Replacement Rebate assists residents on First Nations across Saskatchewan in replacing their old gas furnaces with new, high-efficiency models. A $2,000 rebate is offered for each installation of a 95 to 96.9 per cent efficient natural gas furnace, and a $3,000 rebate is available for each installation of a furnace that is 97 per cent efficient or higher. · Through the Home Efficiency Retrofit Rebate , which is offered in conjunction with SaskPower, homeowners who qualified for the federal Canada Greener Homes Grant can receive up to $1,800 to upgrade their home’s insulation, air-sealing, windows and doors. In addition, $200 is provided to offset the cost of hiring an Energy Advisor.
Apply for a Free Home Heating Tune-Up
Nearly 8,000 customers benefited from SaskEnergy’s energy efficiency programs in 2023-24, with $3.9 million in rebates provided. Our total investment in rebates for customers is nearly $14 million since the beginning of 2019-20.
Tune-Up Assistance Program Through SaskEnergy’s Tune-Up Assistance Program (TAP), income-qualified homeowners can apply for a free home heating tune-up offered by a SaskEnergy Network Member. The program provides up to $400 worth of products and services to each qualified homeowner, including the heating tune-up, up to $200 in repairs, two furnace filters, and a carbon monoxide alarm. TAP helps customers meet their home energy needs safely and efficiently, and brings awareness to the importance of carbon monoxide safety. In 2023-24, TAP assisted 1,020 homeowners in 41 Saskatchewan communities and, since the program began in 2017, more than 4,700 customers have received assistance. Investing in market transformation and innovative technology Since 2018, SaskEnergy has been a member of the NGIF, which seeks applications for funding from companies that are developing technology to reduce emissions related to natural gas. In 2023-24, SaskEnergy invested $440,000 toward market transformation and innovative technology projects that assist customers in reducing their environmental footprints. Focus areas for this investment included technologies related to hybrid heating controls, natural gas heat pumps, renewable natural gas and carbon capture.
The SaskEnergy Tune-Up Assistance Program helps income qualified homeowners tune-up the heat with a free furnace maintenance service.
Scan to apply now or visit saskenergy.com/TAP
“Great program for lower income homeowners who might not be able to afford a service like this. The individual that came to do my service was very nice and helpful and I think he truly made a difference in my home with this inspection and tune-up.” – 2023-24 TAP recipient
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Measures and Standards: Key Indicators
2023-24 Highlights
Looking Ahead
Our Approach to ESG
President’s Message
About SaskEnergy
Environment
Prosperity
Our People
Governance
First Nations Furnace Replacement Rebate: Reducing Energy Use, Emissions and Costs SaskEnergy’s First Nations Furnace Replacement Rebate, introduced in 2023-24, assists First Nations across the province in reducing emissions and heating costs. The rebate is available to all residential homes located on a First Nation that have a standard or mid-efficient furnace. Through the program, SaskEnergy offers a $2,000 rebate for the installation of a 95 to 96.9 per cent efficient natural gas furnace, and a $3,000 rebate for each installation of a furnace that is 97 per cent efficient or higher. Yellow Quill First Nation in east-central Saskatchewan is one of the communities that is accessing this program, with the installation of new high-efficiency natural gas furnaces at 43 homes in the community. “This helps our community because high-efficiency furnaces are a lot cheaper on the budget, so the families and elderly people that live in these homes will see a decrease on their monthly bills,” says Darrell Natawcappo, Housing Coordinator. “And, as First Nations people, it’s a way of doing our part to take care of the land and reduce our carbon footprint.”
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Measures and Standards: Key Indicators
2023-24 Highlights
Looking Ahead
Our Approach to ESG
President’s Message
About SaskEnergy
Environment
Prosperity
Our People
Governance
Protecting the local environment From project planning and design through to construction, operation, and reclamation activities, SaskEnergy strives to reduce our impact on all aspects of the environment, including plant life, wildlife, water bodies, native prairie, and species at risk. Working around environmentally sensitive land, water and wildlife When planning our projects, we make it a priority to avoid environmentally sensitive landscapes and water features. We use geographic information system (GIS) layers to determine the best routes for our gas lines to avoid environmentally sensitive areas. Once a route is selected, risk assessments take place for any sensitive habitats, landscape features and species. Depending on the findings of the assessment, we then coordinate field visits. In areas that are environmentally sensitive, we visit the sites during spring, summer and fall to gain a greater understanding of the land use, species habitat and species of concern. Based on these visits and what is found, we will then either re-route our project to avoid sensitive species and habitats, or put mitigation measures in place to reduce the risk of disturbing them. In determining what mitigation measures are the best fit for any environmentally sensitive areas where we work, SaskEnergy collaborates with environmental professionals and governing agencies to make sure we are compliant with environmental acts and regulations. We also have third-party environmental monitors on site, where required, to act as our environmental eyes and ears in the field. In addition to assessing compliance with any specific mitigation measures or regulatory requirements, they are continuously watching for new potential environmental concerns that may arise and help to make sure that those concerns are effectively addressed. Examples include birds nesting on equipment or in the project area, discovering contamination during excavation, or any spills or releases that may occur during construction.
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Measures and Standards: Key Indicators
2023-24 Highlights
Looking Ahead
Our Approach to ESG
President’s Message
About SaskEnergy
Environment
Prosperity
Our People
Governance
Updates to our Environmental Protection Standards manual In alignment with environmental compliance requirements, SaskEnergy updated our Environmental Protection Standards manual for employees, contractors and regulators. Numerous additions and benefits were realized through the completion of the update, including: · The creation of activity-based best management practices documents, outlining environmental standards and requirements based on disturbance level, such that it is easier for staff to identify whether an environmental mitigation measure applies to the activity they are completing. · New sections related to air quality, waste management, and updated biosecurity protocols. · The manual can be used to display, to our regulators, the environmental protection we commit to during each of our projects. Returning the land to its original state Once our construction projects are complete, we strive to return the land to its original — or to a better — state. SaskEnergy’s reclamation inspection program involves checking and addressing crop and vegetation re-growth, as well as slumping and weed issues, on recently constructed gas lines and areas of legacy reclamation concerns. In 2023-24, we inspected 70 kilometres of gas line routes and identified 66 issues that required attention, mostly related to vegetation, including weed management and vegetation re-establishment. Of these issues, 84 per cent were resolved. Due to weather or other constraints outside of our control, not all issues can be resolved during the same year they took place; however, SaskEnergy has plans to address all land or water-related issues that arise.
Mitigating and addressing spills and releases As part of regulatory reporting requirements, and our efforts to reduce and mitigate spills and releases, SaskEnergy has processes in place to track any liquid spills, mud releases, and natural gas releases that occur during our operations. Even when following proper protocols, spills and releases can still happen, so it is important that we have procedures in place to address them, including investigating, reporting, and cleaning them up as quickly as possible to minimize their impact to the environment. SaskEnergy experienced five reportable spills and releases during 2023-24 — four inadvertent mud releases and one natural gas release into a waterbody. Drilling mud is a product of horizontal directional drilling activity, which is used to route our gas lines under obstacles or environmentally sensitive areas such as roads, train tracks or wetlands. Occasionally, underground conditions result in drilling mud making its way to the surface. For each of the mud releases in 2023-24, there was no environmental impact due to the nature of the drilling mud, which was composed of water and bentonite — an inert swelling clay. After time, the mud settles at the bottom of the waterbody. The natural gas release that occurred was the result of a leak from a gas line into a waterbody. When the leak was identified, the gas was shut off and a new line was installed.
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Measures and Standards: Key Indicators
2023-24 Highlights
Looking Ahead
Our Approach to ESG
President’s Message
About SaskEnergy
Environment
Prosperity
Our People
Governance
Introducing drones into our environmental studies To enhance our compliance activities related to environmental acts and regulations, SaskEnergy has introduced the use of drones during our environmental audits. The drones give us a bird’s eye view of work areas — prior to construction, during construction, and as we complete reclamation work. They also provide benefits such as identifying environmentally sensitive areas, more quickly discovering any environmental issues, and reducing the risk of site contamination. During our Regina area expansion projects, drones were used to conduct environmental surveys in sensitive areas. On the reclamation side, SaskEnergy is piloting the use of a drone in the application of herbicide, which reduces biosecurity risk, time, and the cost of equipment and personnel. Sponsoring organizations that conserve and protect the environment As part of our commitment to environmental responsibility, SaskEnergy is proud to support organizations that conserve and protect the environment. Throughout the past 15 years, we have sponsored more than 660 environmental and wildlife initiatives across Saskatchewan. During 2023-24, major environmental stewardship sponsorships included: · $25,000 toward Nature Conservancy Canada as part of a two-year, $50,000 agreement to support the organization’s conservation efforts in the Southwest Sandhills in Saskatchewan. · A $1,000 sponsorship of the Saskatchewan Prairie Conservation Action Plan’s Native Prairie Appreciation Week, which increases awareness about native prairie conservation. · A $10,000 sponsorship of Nature Saskatchewan’s Stewards of Saskatchewan program, which engages rural landowners in species at risk habitat conservation. · Our fifth annual $25,000 sponsorship of Earth Rangers, which works to transform children’s concerns about the environment into positive action.
SUPPORTING SWIFT ACTION TOWARD CHILDREN BECOMING ENVIRONMENTAL LEADERS As part of our community investment program, SaskEnergy invested nearly $100,000 in sponsorships related to environmental stewardship in 2023-24. This included a sponsorship of Earth Rangers — an organization that, through a variety of programs, helps transform children’s concerns about the environment into positive action and empowers them to become environmental leaders at home, in school and in their communities. As part of our sponsorship of this organization, which we’ve now been supporting for five years, SaskEnergy has been able to select more than 40 elementary schools throughout Saskatchewan to receive presentations from Earth Rangers. Each year, Earth Rangers also chooses an endangered animal within Saskatchewan to be part of its lineup of adoption kits, aimed at engaging families and children in learning about and supporting the protection of species at risk. Earth Rangers introduced a Swift Fox adoption kit in 2023-24, which SaskEnergy was proud to support.
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Supporting NCC's Conservation Efforts in the Southwest Sandhills For more than 25 years, SaskEnergy has been a proud sponsor of the Nature Conservancy of Canada (NCC) and, since 2021, the work the organization is doing to conserve Saskatchewan’s Southwest Sandhills. In October 2023, a team of SaskEnergy employees volunteered to clear out garbage and debris from NCC’s newly acquired 286-hectare property, the Cave Pasture, just north of Swift Current. The team brought trucks and heavy equipment to assist with the cleanup, which included the removal of barbed wire and large parts of a windmill. Thanks to their efforts, more than 3,000 pounds of scrap metal and 2,000 pounds of garbage were hauled away from the site. “You can never have enough of these days when you can contribute to a great cause,” says Mike Rossiter, General Manager of SaskEnergy’s Southwest Operations team. “The Sandhills is a great place to visit and we should strive to maintain sites like these for future generations to enjoy.”
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PROSPERITY SaskEnergy invests in the rural, urban and Indigenous communities where we live and work. We support the province’s economy and create meaningful relationships as we deliver safe and reliable energy and create value for our customers.
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Committed to Our Customers and the Communities We Serve
Safety is No Accident Be aware of what’s below ground when working above.
As SaskEnergy delivers safe and reliable energy to the residents, businesses and industries of Saskatchewan, we are committed to providing competitive rates for our customers and to supporting the province’s economy. Creating meaningful relationships and investing in the communities we serve are key to our success, whether it’s through community grants and sponsorships, local procurement, public education, or engagement with stakeholders and Indigenous groups. At the same time, safety is at the core of everything we do, and we are committed to maintaining the reliability of our system so our customers can count on us year-round. Safety is at the centre of everything we do The safety of the public and our team is at the core of SaskEnergy’s business. From design and construction to operation and maintenance, safety programming is applied to all aspects of our gas lines and facilities. Public safety messaging and awareness We support public safety through customer-focused programs and initiatives, including advertising, odour awareness and damage prevention messaging, and public outreach. In 2023-24, we launched our first-ever safety campaign to educate the public on our above- and below-ground infrastructure, including encroachments and the importance of protecting our gas meters. The goal of the campaign was to increase public safety and decrease gas line hits, encroachments and damage to our infrastructure. Carbon monoxide (CO) awareness is also a focus area. Through our CO alarm program, our technicians distributed more than 1,000 CO alarms throughout Saskatchewan during 2023-24. SaskEnergy also has both an online and in-person first responder training package so those who may arrive first at natural gas emergencies have the information they need to be prepared and keep themselves, and the public, safe.
Encroachments Building a structure over a natural gas line is a hazard and costly to fix.
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Investing in the safety of our system In 2023-24, we invested $119 million in system integrity and reliability initiatives. This includes our service upgrade program, which is SaskEnergy’s largest program with respect to budget and risk reduction. Through the program, areas where our natural gas infrastructure requires updating are identified, and then upgrade plans are put in place. The program specifically focuses on upgrading service tee connections, which are used to connect gas mains to residences and commercial buildings. These connections — many of which were installed as far back as the 1950s — are more susceptible to leaks than the connections that meet today’s standards. By upgrading the connections, not only are we enhancing the safety and reliability of our system, but we’re also reducing our emissions through the associated reduction in leaks. More than 2,700 service upgrades were completed in 2023-24, occurring primarily in Regina and Saskatoon. SaskEnergy also has an annual leak survey program in place to maintain public safety and the safety of our system. Surveys occur by foot, by vehicle and aerially, and both our above- and below-ground assets are inspected. The percentage of leaks found through our survey program has increased in the last decade due to improvements in technology and in our leak survey process, which has greatly reduced the number of odour calls from our customers. More than 24,000 kilometres of gas lines were surveyed in 2023-24.
Responding to customer safety calls Each year, SaskEnergy responds to more than 14,000 safety service calls from customers. This includes odour calls, carbon monoxide calls, line hits and other emergency scenarios that require the safe consideration of natural gas infrastructure. As a company that provides 24/7 response capabilities throughout the communities we serve, SaskEnergy’s target is to be on-site within 60 minutes of a customer call, more than 80 per cent of the time. This target was exceeded in 2023-24, with 84 per cent of safety service calls responded to within less than 60 minutes and an average response time of 38.4 minutes. Prepared for emergencies We regularly collaborate with industry associations, Crown corporations, provincial regulatory bodies, first response agencies and other natural gas utilities across Canada to incorporate leading safety practices and technology in our operations. In the rare occasion that an emergency does occur, we have a robust emergency response program to protect the public and the communities we serve, our employees, and the environment.
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During 2023-24, SaskEnergy conducted an emergency response exercise for our natural gas distribution and transmission system in the Yorkton area. The exercise — which simulated an agricultural hit to one of our stations, resulting in a transmission line leak and loss of service to customers — included site response, an incident command centre at our Yorkton office, and additional response personnel at our head office building. Throughout the exercise, our employees demonstrated a solid understanding of the methods and approaches to supporting the safety of first responders and the public. In addition, they showed cooperative planning and problem solving during the analysis and resolution of the scenario. Not only do emergency exercises reinforce areas of strength in our ability to safely and effectively respond to incidents, but they also provide an opportunity to identify areas for improvement, which can be made well before a real-life emergency occurs.
Tabletop exercises are also held each year to provide our employees with the opportunity to learn in a safe environment. These exercises generally follow a risk-based approach and focus on potential internal or industry incidents. The information shared during the exercises assists our employees in being able to better respond to actual incidents, should they arise. In 2023-24, SaskEnergy employees participated in 80 tabletop exercises in 28 locations throughout the province. Providing Saskatchewan with reliable energy With service that is more than 99.99 per cent reliable, SaskEnergy supplies Saskatchewan residents with energy that they can count on year-round, even during the most extreme cold weather. Through our nearly 88,000-kilometre gas line network that is designed for safety and reliability, our customers rarely experience a service disruption. The amount of energy that SaskEnergy delivers throughout the province is greater than the amount of energy provided through any other means. In addition, natural gas plays an important role in electricity generation in Saskatchewan, as it is used to generate more electricity than any other energy source. This is helping to reduce the carbon intensity of the electricity generation mix as well as the dependency on conventional coal. For many customers, such as hospitals, natural gas serves not only as the primary heating source but as an emergency backstop for power generation during electrical outages.
An affordable source of energy Natural gas plays a critical role in meeting Saskatchewan’s energy needs and demand continues to grow. Recognizing our role in meeting current and future demand, SaskEnergy’s ability to provide affordable energy is one of our strategic imperatives. We know our customers value low delivery charges and stable commodity rates. SaskEnergy is one of the few natural gas distribution companies in North America that uses a hedging strategy to deliver rate stability to our customers. Through this strategy, we purchase a portion of our gas in the forward market and supply it to customers in future years, allowing us to reduce our risk to daily price fluctuations and provide stable rates to customers. We also focus on financial stewardship, which includes identifying and incorporating efficiencies in our business processes. While SaskEnergy’s delivery rate increased by a system average of five per cent in 2023-24, our commodity rate decreased from $4.20 per gigajoule (GJ) to $3.20 per GJ, which resulted in an overall bill decrease of 7.8 per cent for the average residential customer. We also achieved our goal of competitive rates compared to major utilities across Canada. At the end of 2023-24, SaskEnergy’s average annual residential natural gas bill was the second lowest in the country.
Second lowest average annual residential natural gas bill in Canada
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