2014 SaskEnergy Annual Report

Glossary of Key Success Measures

Service Excellence

Efficient Operations

Distribution

The Operation, Maintenance and Administration (OM&A) Costs per Customer measure is a proxy for the relative efficiency of the Distribution Utility’s operations and is calculated using OM&A expenses (excludes transportation and storage charges) divided by the total number of distribution customers (380,768 customers at December 31, 2014). This measure is comparable to other Canadian gas utilities. The Competitive Residential Delivery Rates measure reports the ranking of SaskEnergy’s natural gas distribution delivery service rates, relative to the rates charged by other major Canadian utilities. The cost comparison is based on a benchmark level of consumption upon which the published rates of other service providers are applied to determine SaskEnergy’s relative ranking. The calculations also factor in all temporary and one-time refunds, rebates, rate riders, or surcharges approved by the utility’s regulator. Federal, provincial and municipal taxes are excluded from the comparison as are any Government rebates that are not directly approved by the utility’s regulator. The OM&A Costs per Book Value of Assets Managed measure is a proxy for the relative efficiency of the Transmission Utility’s operations and is calculated using OM&A expenses (excludes third-party transportation charges) divided by the total value of the assets managed as part of the TransGas transmission system. The term “leak” is defined as any unplanned release of product from the distribution system. The methodology for this metric was developed and standardized during 2013 by the Canadian Gas Association (CGA) for inter-jurisdictional comparison purposes, and the SaskEnergy data on leaks per 1,000 km of pipe has been revised to align with CGA reporting methodology. The term “failure” is defined as any unplanned release of product from the pipe body. This measure aligns with the CEPA definition and statistics, which the Corporation will use as a benchmark. The definition does not include small leaks on fittings and valve bodies. For reference, the CEPA five-year average is 0.153. This measure reflects, as a percentage, the current year of integrity capital spending against the Corporation’s assets as of 15 years ago. In general, older assets require greater attention from an integrity perspective, and thus it is appropriate to measure integrity spending against these older assets. SaskEnergy is currently in a significant growth period, which would have skewed the measure if current year assets had been used.

TransGas

Safety/Vigilance

SaskEnergy Leaks per 1,000 kilometres of Mains

TransGas Pipeline Failures per 1,000 kilometres of Pipe

Safety and Integrity

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