Management’s Discussion and Analysis
Environmental SaskEnergy continues to concentrate on environmental sustainability throughout its operations by measuring the intensity of greenhouse gas (GHG) emissions relative to the amount of compression used to transport natural gas. This measure is calculated using a cumulative average at the end of each quarter. The Corporation achieved an emissions level of 324 tonnes CO 2 e per million brake horsepower hours, which is below the target of 325 tonnes CO 2 e per million brake horsepower hours set for 2019-20. SaskEnergy continues to work to identify opportunities for emission reductions within its operations, with a focus on compliance with the new federal Oil and Gas Methane Regulations and Greenhouse Gas Pollution Pricing Act (GGPPA). The federal government is also consulting with industry on the Clean Fuel Standard Regulations , which aim to reduce the carbon intensity of common fuels. Final regulations for the natural gas portion of the Clean Fuel Standard are expected in 2023. SaskEnergy is implementing an Emissions Data Management System (EDMS) to house all emissions- related data in a centralized repository that improves the Corporation’s ability to reduce emissions and meet record-keeping and verification requirements for greenhouse gas and air pollutant regulations. In recent years, the oil and gas industry has experienced increased regulatory intensification related to air pollutants and greenhouse gas emissions. SaskEnergy recognized the need for improved data management in order to ensure that it is positioned to meet regulatory compliance requirements, properly measure and reduce its environmental impact, and achieve customer expectations for environmental stewardship. The data management system will help to ensure that the Corporation manages emissions data in accordance with regulatory requirements. It will provide improved quality control and documentation of changes, and will store all emissions data in a centralized location. Environment and Sustainability team members will utilize data housed in this system to monitor and report on SaskEnergy’s environmental performance related to greenhouse gas and air pollutant emissions. Community Relationship SaskEnergy’s investment in Indigenous businesses was strong in 2019-20 and the Corporation is realizing positive results from these partnerships. The deferral of a large gas line project, due to the COVID-19 pandemic, reduced a large percentage of SaskEnergy’s investment in Indigenous contracts at the end of 2019-20.
Rate Management SaskEnergy achieved its goal of having competitive residential delivery rates with the major utilities across Canada. A typical residential customer in Regina paid $556 for delivery service in 2019-20, which is the third-lowest rate in Canada. Hamilton, Ontario remains the lowest with a rate of $431 for a typical customer. SaskEnergy also had the third-lowest total residential natural gas utility rate (delivery and commodity combined) in Canada. Customer Satisfaction SaskEnergy believes that a true indicator of its success in delivering safe and reliable service is formal feedback from customers. Continuing to provide a high level of customer service that is efficient and effective is a key objective for the Corporation. SaskEnergy and TransGas conduct annual surveys in an effort to gather feedback on customer experiences, expectations and overall satisfaction. SaskEnergy achieved an overall customer satisfaction score of 91 per cent in 2019-20. This was achieved through maintaining low rates, introducing the Residential Furnace Replacement Program, and investing in gas line infrastructure. Additional drivers of overall customer satisfaction include taking initiatives to meet customer needs, delivering high standards of service and continually improving service offerings. For example, SaskEnergy updated its customer connection process, improving its ability to fulfill customer requests for natural gas service, from the initial project quote to the date the service is activated. The TransGas customer survey results indicated that 85 per cent of customers are satisfied with TransGas’ customer services and interactions with the customer service team. The result captures a range of feedback, from service delivered by key personnel in TransGas Customer Services, to reliability of service, outages and value statements. Drivers of this year’s results continue to be related to customer concerns with the TransGas business system. TransGas continues its efforts to improve service quality, provide good value for the rates, and offer flexible service through innovative energy solutions to improve satisfaction levels to those seen in past years.
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