2014 SaskEnergy Annual Report

Service Excellence

2013 Actual

2014 Actual

2014 Target

2015 Target

Strategic Measure

Comments

Efficient Operations • Distribution ° Operation, Maintenance and

$305

$307

$304 Increased activity levels for response to extreme weather events as well as safety and integrity initiatives increased costs in 2014.

$316

Administration (OM&A) Costs per Customer ° Competitive Residential Delivery Rates

Competitive with Industry

Competitive with Industry

Competitive with Industry

A typical residential customer in Saskatchewan paid $446 for delivery service in 2014, which was the lowest amount across Canada.

Competitive with Industry

• TransGas

7.1%

7.8%

7.1% This metric is a proxy for the relative efficiency of the Transmission Utility operations. TransGas OM&A reflected strong resource management,

° Operation, Maintenance and Administration Costs per Book Value of Assets Managed

7.4%

particularly in light of the efforts related to the response to the extreme cold weather that characterized the early part of 2014.

Safety/Vigilance • SaskEnergy Leaks per 1,000 kilometres of Mains

6.00

5.99

6.90 The target was achieved as a result of system integrity programs, which proactively identify and recommend replacement of service connections flagged as “high risk” (2,349 service upgrades in 2014). 0.13 Mitigated through mature Plant Integrity, In-Line Inspection and Cathodic Protection programs, reportable pipeline

5.99

0.11

0.07

• TransGas Pipeline Failures per 1,000 kilometres of Pipe

0.07

failures for 2014 were well below the Canadian Energy Pipeline Association (CEPA) industry failure rate of 0.476.

5.2%

• Safety and Integrity

6.2%

6.0% The metric finished the year in the target range given the focus placed on risk-based integrity programming ($101 million) in 2014.

6.2%

Customer Satisfaction • SaskEnergy

89%

88%

89% The 2014 SaskEnergy survey results show strong levels of customer satisfaction in virtually all areas, including safety and reliability. 90% Customer survey results in 2014 reflect continued strong satisfaction with TransGas business services despite the challenges that the extreme cold in early 2014 created for TransGas and its customers.

86%

93%

• TransGas

94%

93%

20

Management’s Discussion & Analysis

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