Management’s Discussion and Analysis
Transportation and Storage Revenue The Corporation generates transportation revenue by receiving gas from customers at various receipt points in Saskatchewan and Alberta and delivering it to customers at various delivery points in the province. The transportation toll structure includes a receipt service charge, which customers pay when they put gas onto the natural gas transportation system, and a delivery service charge that customers pay when they take delivery from the natural gas transportation system. The Corporation offers both firm and interruptible transportation contracts for both services. Firm contracts guarantee customers the right to deliver or receive a specified quantity of gas daily, with customers paying for the contracted capacity regardless of usage. Interruptible contracts allow customers gas delivery or receipt only when there is available capacity on the system, with customers paying tolls only when they use the service. Integral to the Corporation’s transmission system are several strategically located natural gas storage sites, which have the capacity to provide operational flexibility along with reliable and competitive natural gas storage service. For the 12 months ending March 31, 2025, transportation and storage revenues totaled $249 million, reflecting a $13 million increase compared to the previous fiscal year. This growth was primarily driven by a two per cent average rate increase for transportation and storage services implemented effective April 1, 2024, combined with increased contract demand for delivery service from customers as they continue to choose natural gas as their energy source.
Customer Capital Contributions The Corporation receives capital contributions from customers to partially offset the cost of constructing facilities to connect them to the transmission and distribution systems. Contributions related to transmission system projects tend to be larger but less frequent than those related to the distribution system. The volume and magnitude of customer contribution revenue can vary significantly period over period due to various factors influencing receipt and recognition as revenue. Customer capital contributions for the 12 months ending March 31, 2025, were $12 million higher compared to the same period ending March 31, 2024. This increase was driven by a greater number of customers, including a few large industrial customers in power generation and potash mining industries, requiring new natural gas distribution connections.
Customer Capital Contributions
CUSTOMER CAPITAL CONTRIBUTIONS
$60
$50
$40
$30
$20
$10
$0
2020-21
2021-22
2022-23
2023-24
2024-25
Transportation and Storage Revenue
TRANSPORTATION AND STORAGE REVENUE
$260
500
$240
450
$220
400
$200
$180
350
$160
300
$140
250
$120
$100
200
2020-21
2021-22
2022-23
2023-24
2024-25
Transportation & storage revenue
Transmission volumes
37
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