Management’s Discussion and Analysis
Outlook In 2024-25, SaskEnergy’s strategic imperatives include balancing affordability with environmental responsibility. The need for safe, reliable and affordable energy remains paramount for the people, businesses and industries of Saskatchewan to thrive. Responding to the current inflationary environment and continuing to find ways to efficiently serve customers with affordable energy is a growing challenge. Maintaining the integrity and reliability of the natural gas system, expanding to meet the growing needs of customers, and improving customers’ service experience are integral to the Corporation’s present and future. SaskEnergy anticipates modest growth from industrial customers to continue in 2024-25, with additions from gas-fired power generation leading the way. While the number of residential customers connected to SaskEnergy’s distribution system is expected to continue increasing, total demand and revenue growth from this customer segment is expected to remain stable due to energy efficiency improvements.
Even with expected customer growth, SaskEnergy is forecasting lower earnings in 2024-25 due to higher operating costs, as well as lower asset optimization margins. Also contributing to anticipated earnings decline is the lack of delivery rate adjustment in 2024-25 as the organization continues to face pressure from inflationary cost increases. Affordability remains a top priority for SaskEnergy and its focus on operational excellence will look to limit the extent of possible delivery rate increases in the future. SaskEnergy is committed to providing solutions and service that benefit customers and Saskatchewan, by leveraging the Corporation’s expertise and the province’s private sector. Throughout 2024-25, SaskEnergy will increase its capital investment in the province, with key areas of focus including: maintaining the safety and reliability of the natural gas transmission and distribution systems; enhancing customer experience; and, continuing to support the emissions reduction strategy.
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