Management’s Discussion and Analysis
Capital Additions Capital additions, as reported in the consolidated financial statements, were as follows:
(millions)
March 31, 2024 March 31, 2023
Change
$
55 $
Customer growth System expansion Risk management
76 $
(21)
52 94 46 10
27 70 29 11
25 24 17
Reliability of natural gas service
Business and technology optimization
(1)
$
257 $
Capital additions
213 $
44
Capital additions through the 12 months ending March 31, 2024 were $44 million higher than the 2022-23 additions. Investment in customer growth projects decreased $21 million in 2023-24, as the Corporation focused on investing in urban and rural mains and services in order to support existing and future customer connections to the distribution system. In 2022-23, the Corporation completed work on the large transmission and distribution sections of the Moose Jaw Supply Project. System expansion capital projects provide incremental capacity for the transmission and distribution systems through the installation of new or expanded gas line or facility assets, thus enabling demand growth and the addition of new customers. Higher investment of $25 million in system expansion projects through 2023-24 resulted from system work focusing on the Melfort East Expansion gas line project and west Regina system reinforcement to meet growing customer demand. Risk management projects mitigate the likelihood of a negative consequence, such as damage or loss of gas containment, occurring on SaskEnergy’s natural gas system. These consequences typically include damage to infrastructure, environment, and potential harm to or loss of human life.
Risk management spending increased $24 million in 2023-24, as the Corporation focused on replacing cathodic protection, measurement and natural gas services. In addition, gas line inspection and survey costs were higher in 2023-24, resulting from increasing costs and a growing infrastructure. Reliability of natural gas in-service assets includes enhancements, modifications or upgrades to facilities, ensuring that natural gas demand will continue to be met without failure or loss of service. Reliability of natural gas service spending increased in 2023-24 by $17 million, primarily due to various system improvement work on town border stations, district regulator stations and natural gas compressors. In addition, supply chain issues delayed planned delivery of fleet vehicles and equipment from 2022-23 to 2023-24. Business and technology optimization ensures that every investment in information technology, every resource allocated, and every application in development or production, meets the Corporation’s business goals. Business and technology optimization spending decreased by $1 million in 2023-24, as the Corporation invested in a customer information system upgrade and a new work management business processes system, which will optimize field service management activities.
43
Made with FlippingBook Ebook Creator