Management’s Discussion and Analysis
33
Revenue (millions)
March 31, 2026
March 31, 2025
Change
$
324 $
Delivery revenue
324 $
-
261
Transportation and storage revenue Customer capital contributions
249
12 24 36
64
40
$
649 $
Revenue
613 $
Delivery Revenue Natural gas delivery rates are structured to recover all distribution facility and operating costs throughout the year and generate a return for shareholders. The costs associated with delivering natural gas to customers encompass the Corporation’s need for natural gas transportation and storage service, investment to support the integrity of its distribution system, and other essential operating expenses required for the safe and reliable delivery of natural gas. Additionally, compliance with regulatory codes and industry best practices regarding safety are important considerations impacting natural gas delivery services. To minimize the financial impact on delivery service customers, the Corporation strives to optimize the use of resources and technology, while also collaborating with other Crown corporations and executive government to capture efficiency savings. Delivery revenue is primarily influenced by the number of customers, their natural gas consumption and the delivery charges resulting from the rate approval process through the Saskatchewan Rate Review Panel and provincial cabinet. Weather is the most significant external factor affecting delivery revenue, as residential and commercial customers primarily use natural gas as heating fuel.
Delivery revenue of $324 million was in line with the prior year. Growth in the customer base supported delivery revenues, with increased consumption from the 3,881 new customers added to the distribution system contributing approximately $3 million. This favourable impact was fully offset by warmer weather conditions, as temperatures were approximately five per cent warmer than the prior year, resulting in lower volumes and an unfavourable impact of approximately $3 million.
Delivery Revenue
DELIVERY REVENUE
6000
$350
5900
$340
5800
$330
5700
$320
5600
$310
5500
$300
5400
$290
5300
$280
5200
$270
5100
$260
5000
$250
2021-22
2022-23
2023-24
2024-25
2025-26
Delivery revenue
Heating degree days
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