Notes to the Consolidated Financial Statements
81
25. Other Net Losses (millions) Decommissioning costs Project cancellation costs Net loss on disposal of assets Loss on impairment of assets
2026
2025
$
(4) $
(4)
(2) (1) (1)
-
- -
(5) (9)
$
(8) $
Decommissioning costs primarily consist of costs associated with derecognizing assets without established decommissioning liabilities, as well as additional decommissioning expenses related to non-operational assets. Project cancellation costs relate to write-offs resulting from the cancellation of a system enhancement project. Net loss on disposal of assets represents the net result of retiring and disposing of assets across various categories, which gave rise to both gains and losses. Losses on impairment of assets were recognized and are made up of several smaller impairments, the most significant of which is the impairment of compression assets, as decommissioning liabilities pertaining to forecasted abandonment activities of impaired assets increased. 26. Related Party Transactions Balances and transactions between SaskEnergy and its wholly owned subsidiaries, which are related parties of SaskEnergy, have been eliminated upon consolidation and are not disclosed in this note. Details of transactions between the Corporation and other related parties are disclosed below. a. Transactions with key management personnel Key management personnel include directors and executive officers. The compensation paid to key management for employee services is as follows: (millions) 2026 2025 Short-term benefits $ 4 $ 3 b. Other related party transactions As a Crown corporation, SaskEnergy is ultimately controlled by the Government of Saskatchewan. Included in the consolidated financial statements are transactions with various Saskatchewan Crown corporations, ministries, agencies, boards and commissions related to the Corporation by virtue of common control by the Government of Saskatchewan and non-Crown corporations and enterprises subject to joint control and significant influence by the Government of Saskatchewan (collectively referred to as related parties). Government-related entities are exempt from providing disclosure about individual related party transactions, other than the transactions with key management personnel disclosed above. Instead, government-related entities are required to disclose the types and extent of individually or collectively significant transactions with related parties. In determining individually significant transactions, the Corporation considers the size, type and terms of the transaction. There were no other individually or collectively significant transactions with related parties for the period. All other transactions with related parties were routine operating transactions that were settled at prevailing market prices under normal trade terms. 27. Subsequent Event On May 8, 2026, the Corporation entered into an agreement with the Province to borrow an additional $50 million of long-term debt. The debt was issued at a discount of $2 million, bears a coupon interest rate of 4.4 percent and matures in 2056.
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