Management’s Discussion and Analysis
Public Acceptance The risk to growth and system use as a result of changes in the public perception of natural gas. • The role of fossil fuels in the energy mix is an active and growing public debate nationally and beyond. The number of private and public sector commitments to a net zero future continues to grow. While the acceptability of natural gas use presently remains high in the local market, there is potential for a shift to occur with either a direct or indirect impact on SaskEnergy. • Primary mitigation efforts include SaskEnergy’s energy efficiency programs, which assist customers in meeting their sustainability goals, as well as stakeholder engagement activities focused on enhancing public energy literacy. In addition, internal operational sustainability projects are prioritized, which reduce emissions in line with the Corporation’s 2030 goal. • Exploration of Renewable Natural Gas (RNG) and other energy solutions is also being assessed. RNG is gaining attention as a gas line-quality gas that is fully interchangeable with conventional natural gas. RNG is largely biogas, which is a gaseous product from the decomposition of organic matter, that has been processed to purity standards. Like conventional natural gas, RNG can be used as a transportation fuel in the form of compressed natural gas or liquefied natural gas. RNG may be sourced from landfills, livestock operations and wastewater treatment facilities.
Third-Party Risk The risk the Corporation is exposed to negative outcomes due to a third party failing to protect data or systems, or failing to provide agreed upon business activities, functions or services. • SaskEnergy conducts detailed due diligence before entering into contracts with third parties for services, including IT related support, due to the risk of breaches at the third party which may implicitly impact the Corporation. • SaskEnergy has contract terms, service level agreements, and a privacy program in place to mitigate third-party risk exposure. Additionally, the Corporation is focused on formalizing its third-party risk management program to enhance monitoring and reviews over existing third-party contracts. • Strong incident management and business continuity plans provide a further layer of mitigation. Supply Reliability The risk that third-party operated gas lines importing natural gas to Saskatchewan are unavailable or unable to meet SaskEnergy’s requirements. • SaskEnergy primarily relies on imported natural gas to serve its customers. Upstream operational challenges may pose a threat to SaskEnergy’s ability to obtain and transport the required natural gas into the province. • SaskEnergy addresses this risk by engaging in natural gas line regulatory and toll task force forums, while leveraging the Corporation’s integrated storage and transmission system design, which has multiple diversely located border receipt points to add contingency and additional supply routes where possible.
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