Glossary of Key Success Measures
Strategic Measure
This measure reflects, as a percentage, the current year of integrity capital spending against the Corporation’s assets as of 15 years ago. In general, older assets require greater attention from an integrity perspective, and thus it is appropriate to measure integrity spending against these older assets. This metric reflects the Corporation’s focus on safety and integrity efforts and helps ensure integrity programming remains consistent with industry best practice.
Safety and Integrity
This measure is calculated by dividing total net debt by the sum of total net debt plus total owner’s equity.
Debt/Equity Ratio
The consolidated rate of return on equity is measured by dividing the income before unrealized market value adjustments by the average owner’s equity over the year. The average is determined as the simple average of the opening owner’s equity and the closing owner’s equity.
Consolidated Return on Equity
This measure removes unrealized market value adjustments from consolidated net income. Market value adjustments include fair value adjustments on financial and derivative instruments and the revaluation of natural gas in storage to net realizable value.
Income Before Unrealized Market Value Adjustments (millions)
FUEL OF CHOICE
Strategic Measure
This measures the level of growth in the Corporation’s revenues from its core business operations. The SaskEnergy portion of this measure is calculated based on the number of new customers times the average delivery revenue per customer. The TransGas portion of this measure is the incremental revenue growth in the core business. The total incremental revenue is reported as a percentage of the core revenue in the previous year. The Competitive 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.
Core Growth – SaskEnergy and TransGas Revenue Growth
Competitive Residential Delivery Rates
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