SaskEnergy Third Quarter Report - December 31, 2016

7. Commitments and contingencies (continued)

During the period, the Corporation entered into commodity contracts for the physical purchase of natural gas that qualify as own-use contracts. As at December 31, 2016 own-use natural gas derivative instruments had the following notional values and maturities:

(millions)

2017

2018

2019

2020

2021

Total

Own-use physical natural gas contracts Notional value $

$

(36)

-

$

(2)

$

(12)

$

(12)

$

(10)

Notional value - estimated undiscounted net cash inflow (outflow)

b. Contingencies

The Corporation is involved in litigation resulting from the 2014 natural gas incident in the community of Regina Beach, Saskatchewan. The Corporation does not expect the outcomes to result in any material financial impact.

8. Unrealized market value adjustments

For the Three Months Ended December 31

For the Nine Months Ended December 31

2016

2015

2016

2015

(millions)

$

(5)

$

(1)

Change in fair value of debt retirement funds

$

1

$

(4) (4)

18

70

Change in fair value of natural gas derivative instruments Change in revaluation of natural gas in storage to net realizable value

(6)

13

27

(1)

(1)

$

26

$

96

$

(6)

$

(9)

9. Natural gas sales and purchases

For the Three Months Ended December 31 2016 2015 Gas Gas

Commodity Marketing Total

(millions)

Commodity Marketing Total

Natural gas sales Natural gas sales to commodity customers

$

73

$

-

$

73

$

81

$

-

$

81

Realized on natural gas derivative instruments

7

41

48

8

41

49

Change in fair value of natural gas derivative instruments

-

(10)

(10)

-

(4)

(4)

80

31

111

89

37

126

Natural gas purchases Realized on natural gas derivative instruments

(67)

(41)

(108)

(72)

(34)

(106)

Change in fair value of natural gas derivative instruments Change in revaluation of natural gas in storage to net realizable value

29

(1)

28

(1)

(1)

(2)

-

13

13

-

(1)

(1)

(38)

(29)

(67)

(73)

(36)

(109)

$

42

$

2

$

44

$

16

$

1

$

17

22

2016-17 THIRD QUARTER REPORT

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