Management’s Discussion and Analysis
CAPITAL ADDITIONS Capital additions, as reported in the consolidated financial statements, were as follows:
March 31, 2020
March 31, 2019
(millions)
Change
$
198 $
156 $
42
Customer growth and system expansion
107
98 17 28
9
Safety and system integrity
13 11
(4)
Information systems
(17)
Vehicle and equipment, buildings, furniture
$
329 $
299 $
30
Capital additions in 2019-20 of $329 million were higher than the prior year in order to meet Saskatchewan residential and industrial customer load growth in the province. Capital additions of $198 million for customer growth and system expansion were $42 million higher than the prior year. Safety and system integrity programming of $107 million was $9 million higher than the prior year — a sign of the Corporation’s ongoing commitment to a safe, reliable system. The increasing demand and lower Saskatchewan production requires additional Alberta supply to be brought onto SaskEnergy’s transmission system. The Corporation is currently increasing the supply from NOVA Gas Transmission Limited (NGTL) with its Pierceland supply expansion project. This is a cost-effective capacity investment that increases the Corporation’s ability to meet customer’s firm contracted Alberta supply requirements. The expansion also provides supply directly into a delivery growth area and helps leverage existing mainline transmission and compression infrastructure to other key areas of the system with potential future capacity improvements. The multi-year initiative to address growth in and around the city of Saskatoon was completed in 2019-20. This major project increased natural gas capacity in the area and moved high pressure transmission lines further away
CAPITAL ADDITIONS
$100 $125 $150 $175 $200 $225 $250 $275 $300 $325
$0 $25 $50 $75
2015-16
2016-17
2017-18
2018-19
2019-20
from populated areas. During 2019-20, $32 million was spent on this project compared to $28 million in 2018-19. The primary driver of the $17 million decrease in the vehicles and equipment, buildings and furniture category is due to the purchase of a new service centre building near White City during 2018-19.
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