Management’s Discussion and Analysis
Business and technology optimization ensures that every investment in information technology, every resource allocated and every application in development or in production, meets the Corporation’s business goals. The 2022 investment in business and technology optimization is comparable to 2021, concentrating on a Customer Portal project, to replace the Corporation’s online My Account portal. The project is on track to be implemented in the fourth quarter of fiscal 2022-23 and will grow the Corporation’s digital presence. The leading-edge portal will initially provide customers easier access to view current and historical billing information, which will help customers understand their natural gas consumption and implement emissions reductions. Customers will also have the ability to apply for the Equalized Payment and Pre- Authorized Payment Plans, plus pay their bill by credit card. The new platform will be fully mobile compatible with a new SaskEnergy mobile application available on Apple and Android devices after the web-based portal is launched. The portal is also on track to provide customers “Online Appointment Booking”, for services appointments, and landlords will have the ability to self-manager their “Landlord Service Transfer Agreements” in the first quarter of fiscal 2023-24. OUTLOOK SaskEnergy is entrusted with a key provincial asset in the natural gas transmission and distribution system and must ensure standards for safety and reliability are maintained. Safe and reliable service has always been a core priority for SaskEnergy and it will continue to be going forward. This is especially important now as the transition to cleaner energy may cause instability in other areas of the energy sector. The Corporation will continue to mature in the progress of addressing its emissions from operations and assisting customers in meeting their own sustainability goals. SaskEnergy recognizes customers are at the centre of its existence and it is important to proactively anticipate customer needs and expectations. The Corporation is committed to making it easy for customers to interact, transact and receive service when and how they want it. Modest incremental growth is expected from SaskEnergy’s industrial customers, primarily in the value-added agricultural sector and from gas-fired power generation. System expansion investments are expected to increase in and around the cities of Regina and Moose Jaw as industrial customers require system expansion investment to meet their growing natural gas requirements. The number of residential customers connecting to SaskEnergy’s distribution system is expected to be 3,000 new customers in 2022-23. However, customers continue to reduce their natural gas consumption by becoming more energy efficient, which results in limited revenue growth from distribution utility customers. Continued focus on core operations and operational excellence will safeguard SaskEnergy’s financial strength into the future. In 2022-23, income from operations is projected to be $137 million, which is an increase of $55 million from the 2021-22 result. The increase is primarily due to higher asset optimization margins, which are driven by unforeseen market volatility, and 7 per cent colder than normal weather to date. Continued focus on efficient operations creates cost savings, which are partially offset by increased inflationary pressures impacting fuel prices, vehicle maintenance and materials and supplies. Initiatives targeted to support emissions reductions from both internal operations and customer-focused programs also create cost pressure for SaskEnergy. The Corporation will achieve cost savings through business process improvements, leveraging technology and collaboration with other Crown corporations and Executive government. 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 2022-23, SaskEnergy will make $183 million in net capital investments in the province, including maintaining the safety and reliability of the natural gas transmission and distribution systems, meeting regulatory compliance and optimizing the Corporation’s business systems.
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