2019-20 SaskEnergy Annual Report

President’s Message

I am pleased to report that 2019-20 was another strong year. SaskEnergy delivered solid operating and financial results, advanced our strategic priorities and focused on further improving the safety and reliability of our assets. It is the delivery of safe, reliable and affordable natural gas that is the foundation of SaskEnergy’s business and the reason our customers continue to entrust us with their energy needs. Any measure of our short- or long-term performance must align with these core tenets, and I am pleased with our 2019-20 achievements in this regard, as SaskEnergy was effective in meeting customer and stakeholder expectations. SaskEnergy decreased its commodity rate on April 1, 2019 to reflect the low natural gas price environment, resulting in the lowest commodity rate in 20 years. This contributed to SaskEnergy’s total residential natural gas utility rate being the third-lowest in Canada. SaskEnergy also experienced net growth of nearly 2,500 distribution customers and will reach the 400,000 customer mark during the next fiscal year. In 2019-20, transmission load growth in the province contributed to the Corporation’s highest-ever level of transportation and storage revenue. As Saskatchewan is a net importer of natural gas, securing reliable sources of supply to meet provincial gas requirements — both now and into the future — remains a high priority. Understanding the needs and plans of our large customers is critical to ensure that our system has the necessary infrastructure in place to fulfill their requirements.

Indeed, taking a long-term view of our business is key as we continue to meet the demand for natural gas in Saskatchewan and maintain the high level of service we provide to our customer base. In 2019-20, SaskEnergy’s overall residential customer satisfaction rating reached a five-year high of 91 per cent, with high levels of satisfaction being achieved in the categories of safety, reliability, affordability, ease of service and environment. We also recognize that expectations are changing and, while we continue to meet customer needs today, we must look to the expectations of our customers in the future. As a Crown corporation, it is our responsibility to implement solutions that make it easy for customers to do business with SaskEnergy, and in Saskatchewan. Technology will be a critical enabler in meeting the current and future needs of our customers and SaskEnergy can build on the success of work like our award-winning Customer Connect initiative, which was recognized with the Canadian Gas Association’s first-ever Michael Mulcahy Award for Excellence in Customer Care, Innovation and Service in 2019-20, and the Premier’s Award for Excellence in the Public Service. At the same time, it is imperative that we identify solutions that can assist in increasing energy efficiency, lowering emissions and reducing costs — both within our organization and for our customers. In 2019-20, SaskEnergy launched its Furnace Rebate Replacement Program to assist homeowners in replacing aging furnaces with new, high-efficiency furnaces. The program, which provided more than $550,000 in rebates, assisted participating customers in reducing their natural gas and electricity costs, as well as their greenhouse gas emissions. An additional $500,000 in rebates was also provided to commercial businesses to install energy efficient natural gas heating systems. Our future success will depend on many factors: innovative energy solutions that meet customer expectations, working with stakeholders and businesses to communicate the benefits of natural gas and the most reliable energy delivery system in North America, strengthening the communities in which we serve, and minimizing our impact on the environment. As a critical infrastructure service provider, we’ve taken the necessary steps to maintain the health, safety and well-being of our customers, employees and their communities during the COVID-19 public health emergency. Our commitment is to deliver reliable operations and excellent customer service. I can say with confidence that the people who make up this organization have carried SaskEnergy through change and challenges before and I want to assure you that we are prepared to get through this crisis. I want to thank the Chair and all board members for their valuable guidance and support to the Corporation by providing strategic governance and oversight for SaskEnergy. I’d like to close by acknowledging and sincerely thanking all SaskEnergy employees, who have proven their resilience and dedication to the Corporation and our customers through a year of significant challenges and changes. In the end, it’s our people who build our systems and serve our customers. They will continue to deliver safe, reliable and cost effective energy to people of Saskatchewan. It’s a privilege to work with them.

Ken From President and Chief Executive Officer

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