2014 SaskEnergy Annual Report

CREATING VALUE

2013 Actual

2014 Actual

2014 Target Comments

2015 Target

Strategic Measure

Financial Strength • Debt/Equity Ratio

63/37

59/41

61/39 Equity levels were impacted by the

63/37

unfavourable market value adjustments as well as lower earnings levels than anticipated. Outstanding debt was on target due to capital expenditures finishing the year at planned amounts. 8.0% Lower earnings than planned impacted this metric; however, that impact was partially offset by the lower equity level (see above). $62 Delaying the commodity rate change until natural gas prices stabilized negatively impacted earnings. The extreme cold

10.2%

• Consolidated Return on Equity

11.0%

6.5%

$73

$79

• Income Before Unrealized Market Value Adjustments (millions)

$47

weather in early 2014 led to higher expenses, which more than offset the associated additional delivery revenue.

Environmental • Internal Energy Efficiencies (in $ millions, assuming $4 per GJ) 1

N/A

$0.05

$0.15 The Corporation exceeded its

$0.21

target, achieving $205,000 in energy efficiencies, due to the implementation of energy saving technologies such as LED lighting retrofits and industrial equipment upgrades. 355 This new measure reflects the intensity of greenhouse gas emissions relative to the amount of compression used to transport natural gas. With the extreme weather experienced in the first quarter of 2014, the Corporation was forced to utilize older compression units to move the necessary amounts of natural gas. These units are less efficient than the newer compressors in the fleet. 1.3% The target was achieved through completion of 558 events, projects or programs with 309 communities benefiting from SaskEnergy support. 12% The 2014 result was favourably

440

New for 2014

• Greenhouse

390

Gas Emissions (Tonnes of CO 2 e/ million running horsepower hours)

Community Relationship • Community Sponsorships as a Percentage of Net Income

1.1%

New for 2014

1.3%

13%

21%

• Total Contracts – Percentage of Aboriginal Labour Content

15%

impacted by a few large contracts awarded within the construction and communications areas to companies with significant Aboriginal employee representation.

1 This measure has been discontinued for the 2015 Business Plan.

24

Management’s Discussion & Analysis

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