Management’s Discussion and Analysis
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. Generally, contributions related to transmission system projects tend to be larger but less frequent than contributions related to the distribution system. The volume and magnitude of customer contribution revenue can significantly vary period over period as various factors influence their receipt and recognition as revenue. Customer capital contributions for the 12 months ending March 31, 2024 were $29 million lower than the same period ending March 31, 2023. Transmission system customer capital contributions recognized in 2023-24 were $21 million lower than 2022-23, as a large capital project for an industrial customer was completed in the fourth quarter of 2022-23 and the related customer capital contribution was recognized. In addition, distribution system customer capital contributions recognized through 2023-24 were $8 million lower than in 2022-23 as the same industrial customer project had distribution system components as well.
Under an interruptible contract, customers may deliver or receive gas only when there is available capacity on the system and only pay receipt and delivery tolls when they deliver or receive gas. 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 a reliable and competitive natural gas storage service. March 31, 2024, are $1 million higher than in 2022-23. Higher delivery service revenues resulted from industrial customers executing higher contract demand transportation services to meet their expanding operating requirements. In addition, higher rates on receipt services from Alberta service points contributed to the favourable results in 2023-24. These were partially offset by the impact of customers decreasing export transportation service contracts in 2023- 24 compared to 2022-23. High natural gas market prices in Canada through 2022 created incentives for customers to increase export services and supply Eastern Canada with natural gas, as the region was experiencing higher natural gas market prices than Western Canada. This opportunity did not present itself in 2023-24 with export services returning to normal levels. Transportation and storage revenues of $236 million, for the 12 months ending
Customer Capital Contributions
Transportation and Storage Revenue
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