Management’s Discussion and Analysis
In 2023-24, six Slipstream emissions capture systems were installed on transmission compressors. Another focus area in the Corporation’s roadmap is to optimize existing infrastructure to gain efficiencies. To track progress against achieving the goal of 35 per cent emissions reduction by 2030, SaskEnergy continues to measure cumulative greenhouse gas (GHG) emissions reductions relative to 2019. In 2023-24 SaskEnergy reached a 17.0 per cent reduction compared to the 2019 baseline year and exceeded its emissions reduction target of 15.5 per cent for this fiscal year. SaskEnergy is also committed to assisting customers in meeting their own sustainability goals. Residential and commercial equipment rebate programs continue to be offered year-round to encourage residential and business customers to install high-efficiency equipment in their buildings. A rebate for use of hydronic additives in commercial boiler systems also remains available to support the investment in energy efficient products. SaskEnergy launched new programs in 2023-24 addressing residential energy efficiency retrofits, homes built
to higher energy efficiency levels than minimum code requirements, and furnace upgrades in First Nations communities. SaskEnergy also collaborated with SaskPower to provide rebates for smart thermostats. In 2023-24, $3.9 million was spent on efficiency incentives for customers. SaskEnergy’s programs helped customers achieve 19,200 tonnes of incremental gross CO 2 e emissions reductions in 2023-24. This ongoing commitment to customer energy efficiency continues to resonate with customers looking to manage their bills and environmental impact. Program changes were implemented in January 2024 to gain wider reach within existing programs, including expansion of rebate eligibility for customers and new online application forms. SaskEnergy is evaluating opportunities to further expand energy efficiency incentives in 2024-25. SaskEnergy also continues to invest in innovative technology that could become the next generation of equipment used by its customers, with a focus on supporting the commercialization of residential natural gas heat pumps.
Financial SaskEnergy is committed to the long-term financial sustainability of the Corporation, measured through its debt-to-equity ratio, and its regulated return on equity in both the distribution and transmission business.
Financial Strategic Measures For the years ended March 31
2023 Actual
2024 Actual 59/41
2024 Target
2025 Forecast
2026 Forecast
2027 Forecast
2028 Forecast
2029 Forecast
Debt/Equity Ratio
59/41
60/40 62/38 63/37 61/39 60/40 59/41
Regulated Return on Equity - Distribution Regulated Return on Equity - Transmission/Storage
2.2%
5.0%
4.0% 2.0% 3.6% 5.8% 7.1% 8.3%
8.1%
10.9%
7.8% 7.3% 8.57% 8.57% 8.57% 8.57%
SaskEnergy’s financial outcomes are organized around financial sustainability and profitability through the returns provided to its shareholder. SaskEnergy operates a capital-intensive business with large investments in long-life infrastructure, so maintaining financial sustainability through responsible debt management is important to its financial health.
Managing its capital spending is a priority in delivering on financial sustainability as SaskEnergy maintains standards of safe and reliable service, meets customer growth demands, and enables long-term productivity and efficiency savings.
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