2023-24 SaskEnergy Annual Report

Glossary of Key Success Measures

Operational Operational Excellence Measure Definition

Distribution – Operating and Maintenance Costs per Customer

The Operating and Maintenance (O&M) Costs per Customer measure is a proxy for the relative efficiency of the distribution utility’s operations and is calculated using O&M expenses (excludes transportation and storage charges) divided by the total number of distribution customers. The O&M Costs per Book Value of Assets Managed measure is a proxy for the relative efficiency of the transmission utility’s operations and is calculated using O&M expenses (excludes third-party transportation charges) divided by the total value of the assets managed as part of the transmission system. The Residential Delivery Rates measure reports the ranking of SaskEnergy’s natural gas distribution delivery service rates, relative to the rates charged by other major Canadian utilities. The cost comparison is based on a benchmark level of consumption, upon which the published rates of other service providers are applied to determine SaskEnergy’s relative ranking. The calculations also factor in all temporary and one-time refunds, rebates, rate riders or surcharges approved by the utility’s regulator. Federal, provincial and municipal taxes are excluded from the comparison, as are any government rebates that are not directly approved by the utility’s regulator. Unplanned outages affecting more than one customer that arise from activities such as third-party damage (line hits), operator error, facilities failure (e.g. station freeze offs), and security issues. This metric aligns with the natural gas industry, which has a strong focus on the reliability of service. This is one of the key competitive advantages of natural gas as an energy supply. This metric is directly linked to this focus and will help to further highlight reliability of service to employees in the company.

Transmission – Operating and

Maintenance Costs per Book Value of Assets Managed

Residential Delivery Rates

Reliability – Unplanned Distribution Customer Outage Events

Operational Greener Energy Provider Measure Definition

Cumulative GHG Emissions Reduction Relative to 2019 Baseline (Tonnes CO 2 e) Customer GHG Savings (Tonnes CO 2 e/year) from Natural Gas Conservation Programs

This measure is a cumulative change in the amount of Scope 1 (direct emissions created on site) and Scope 2 greenhouse gas emissions (indirect emissions from electricity) from SaskEnergy operations, as compared to the baseline of emissions from 2019. This directly aligns to SaskEnergy’s corporate vision and reflects overall progress to the long-term target of 35 per cent reduction. This measure is determined based on emissions saved by customers in SaskEnergy’s residential and commercial equipment rebate programs. The emissions savings are modelled based on the difference between emissions ratings of new equipment and the regulated or commonly installed efficiency of the equipment replaced in programs, determined based on the age of the replaced equipment. The GHG savings consider both the gas and electric savings as a result of upgrading equipment.

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