Management’s Discussion and Analysis
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Transportation and Storage Revenue The Corporation generates transportation revenue by receiving gas from customers at various receipt points in Saskatchewan and Alberta and delivering it to customers at various delivery points in the province. The transportation toll structure includes a receipt service charge, which customers pay when they put gas onto the natural gas transportation system, and a delivery service charge that customers pay when they take delivery from the natural gas transportation system. The Corporation offers both firm and interruptible transportation contracts for both services. Firm contracts guarantee customers the right to deliver or receive a specified quantity of gas daily, with customers paying for the contracted capacity regardless of usage. Interruptible contracts allow customers gas delivery or receipt only when there is available capacity on the system, with customers paying tolls only when they use the service. Integral to the Corporation’s transmission system are several strategically located natural gas storage sites, which have the capacity to provide operational flexibility along with reliable and competitive natural gas storage service. Transportation and storage revenues of $261 million, for the 12 months ended March 31, 2026, are $12 million higher compared to the previous fiscal year. An average rate increase of just over three per cent for transportation and storage services was implemented effective April 1, 2025, to address expansion of the transmission system and meet growing demand for natural gas services in Saskatchewan.
Customer Capital Contributions The Corporation receives capital contributions from customers to partially offset the cost of constructing facilities to connect them to the transmission and distribution systems. Contributions related to transmission system projects tend to be larger but less frequent than those related to the distribution system. Customer contributions received for the construction of natural gas facilities may fluctuate significantly between periods, and such variability can affect both the amount and timing of recognized revenue. Customer capital contributions for the 12 months ended March 31, 2026, were $24 million higher compared to the same period ended March 31, 2025, resulting from the completion of several significant transmission utility customers’ connections, particularly in the oil and gas sector and the power generation sector.
Customer Capital Contributions
CUSTOMER CAPITAL CONTRIBUTIONS
$70
$60
$50
$40
$30
$20
$10
$0
2021-22
2022-23
2023-24
2024-25
2025-26
Transportation and Storage Revenue
TRANSPORTATION AND STORAGE REVENUE
500
$260
450
$240
$220
400
$200
350
$180
$160
300
$140
250
$120
$100
200
2021-22
2022-23
2023-24
2024-25
2025-26
Transportation & storage revenue
Transmission volumes
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