Management’s Discussion and Analysis
Revenue (millions)
March 31, 2025
March 31, 2024
Change
$
324 $
Delivery revenue
304 $
20 13 12 45
249
Transportation and storage revenue Customer capital contributions
236
40
28
$
613 $
Revenue
568 $
Delivery Revenue Natural gas delivery rates are structured to recover all distribution facility and operating costs throughout the year and generate a return for shareholders. The costs associated with delivering natural gas to customers encompass the Corporation’s need for natural gas transportation and storage service, investment to support the integrity of its distribution system, and other essential operating expenses required for the safe and reliable delivery of natural gas. Additionally, compliance with regulatory codes and industry best practices regarding safety are important considerations impacting natural gas delivery services. To minimize the financial impact on delivery service customers, the Corporation strives to optimize the use of resources and technology, while also collaborating with other Crown corporations and executive government to capture efficiency savings. Delivery revenue is primarily influenced by the number of customers, their natural gas consumption and the delivery charges resulting from the Provincial rate approval process. Weather is the most significant external factor affecting delivery revenue, as residential and commercial customers primarily use natural gas as heating fuel.
Delivery revenue was $20 million higher than in 2023-24, primarily due to weather being 10 per cent colder year-over-year. November, December and February of 2024-25 were 16 per cent, 33 per cent, and 38 per cent colder, respectively, than the prior year which resulted in a significant share of the overall revenue increase. Additionally, the impact of the last rate increase, which was implemented halfway through the 2023-24 fiscal year, also contributed to the year-over-year increase. Lastly, increased consumption from the 3,422 customers added to the distribution system this year was also a favourable contributor.
DELIVERY REVENUE Delivery Revenue
6000
$350
5900
$340
5800
$330
5700
$320
5600
$310
5500
$300
5400
$290
5300
$280
5200
$270
5100
$260
5000
$250
2020-21
2021-22
2022-23
2023-24
2024-25
Delivery revenue
Heating degree days
36
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