2023-24 SaskEnergy Annual Report

Management’s Discussion and Analysis

Operational SaskEnergy strives to pair effective processes with optimized resources to meet customer expectations for affordable, reliable service and deliver on its sustainability commitments.

Operational Strategic Measures For the years ended March 31

2023 Actual

2024 Actual

2024 Target

2025 Forecast

2026 Forecast

2027 Forecast

2028 Forecast

2029 Forecast

Operational Excellence

Change equal to or below Sask. Consumer Price Index Change equal to or below Sask. Consumer Price Index

Change equal to or below Sask. Consumer Price Index Change equal to or below Sask. Consumer Price Index

Change equal to or below Sask. Consumer Price Index Change equal to or below Sask. Consumer Price Index

Change equal to or below Sask. Consumer Price Index Change equal to or below Sask. Consumer Price Index

Change equal to or below Sask. Consumer Price Index Change equal to or below Sask. Consumer Price Index

Distribution – Operating and Maintenance Costs per Customer

$382

$376

$400

Transmission – Operating and

Maintenance Costs per Book Value of Assets Managed Residential Delivery Rates Reliability Unplanned Distribution Customer Outage Events Greener Energy Provider Cumulative GHG Emissions Reduction Relative to 2019 Baseline (Tonnes CO 2 e)

7.4%

7.1%

7.4%

Competitive Competitive

Competitive Competitive Competitive Competitive Competitive Competitive

31

26

38

36

35

35

34

33

2.5% reduction (19.5% cumulative)

3.0% reduction

3.0% reduction

3.0% reduction

3.0% reduction

17.0%

11.5%

15.5%

Customer GHG Savings (Tonnes CO 2 e/year) from Natural Gas Conservation Programs 19,225

19,200

26,000 22,000 23,000 24,000 26,000 26,000

Operational Excellence Operational excellence includes standardization, simplicity and ease of use in the delivery of services. It is about delivering services in a way that reduces costs, thereby keeping rates reasonable, but also delivering an enhanced customer experience. Processes are viewed through the lens of customer value, and resources are allocated to those functions that support it.

Despite lower than anticipated customer additions in the year, Distribution Operating and Maintenance Costs per Customer were lower than expected in 2023-24. Efficiency initiatives in operating and maintenance activities resulted in cost savings and contributed to SaskEnergy exceeding its target by year end. Projects focused on enhancing customer service and providing efficiency through technology adoption were a focus in 2023-24 and helped to deliver this positive result.

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