2014 SaskEnergy Annual Report

23. Natural gas sales and purchases

2014

2013

Gas

Gas

(millions)

Commodity

Marketing

Total

Commodity

Marketing

Total

Natural gas sales Natural gas sales to

commodity customers Realized on natural gas derivative instruments Change in fair value of natural gas derivative instruments

$ 225

$

$ 225

$ 262

$

$ 262

5

370

375

48

408

456

(37)

(37)

11

11

230

333

563

310

419

729

Natural gas purchases Realized on natural gas derivative instruments

(212)

(338)

(550)

(301)

(394)

(695)

Change in fair value of natural gas derivative instruments

27

4

31

(83)

(3)

(86)

Change in revaluation of natural gas in storage to net realizable value

13

13

(12)

(12)

(185)

(321)

(506)

(384)

(409)

(793)

$ 45

$ 12

$ 57

$ (74)

$ 10

$ (64)

24. Other revenue (millions)

2014

2013

Royalty revenue

$

1

$

1

Natural gas liquid sales

11

11

$ 12

$ 12

25. Revenue collected for and paid to municipalities The Corporation is required to remit to 109 urban municipalities, in accordance with the provisions of The SaskEnergy Act , an amount calculated as either three per cent or five per cent of natural gas sales to customers within the respective municipality. These municipal payments are charged to customers and are then remitted to the respective municipalities. During the year, the amount collected for and paid to municipalities, which was recognized on a net basis in operating and maintenance expense, was $19 million (2013 – $17 million). In accordance with the provisions of The SaskEnergy Act , the Corporation is required to collect, from specific customers, an amount based on the value of natural gas transported on their behalf. The Corporation in turn pays the amount collected to the related municipalities. During the year, the amount collected for and paid to municipalities, which was recognized on a net basis in operating and maintenance expense, was $2 million (2013 – $2 million).

26. Depreciation and amortization (millions)

2014

2013

Depreciation of property, plant and equipment

$ 74

$ 78

Amortization of intangible assets

3

5

$ 77

$ 83

The composite rate of depreciation was 2.9% during the year (2013 – 3.1%), and the composite rate of amortization was 5.7% during the year (2013 – 3.7%).

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2014 Annual Report SaskEnergy

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