2015-16 SaskEnergy Annual Report

22. Natural gas sales and purchases

15 Months Ended March 31, 2016

12 Months Ended December 31, 2014

Gas

Gas

(millions)

Commodity Marketing

Total

Commodity Marketing

Total

NATURAL GAS SALES Natural gas sales to commodity customers Realized on natural gas derivative instruments

$ 262

$

$ 262

$ 338

$

$ 338

48

408

456

47

180

227

Change in fair value of natural gas derivative instruments

11

11

(1)

(9)

(10)

310

419

729

384

171

555

NATURAL GAS PURCHASES Realized on natural gas derivative instruments

(301)

(394)

(695)

(338)

(156)

(494)

Change in fair value of natural gas derivative instruments

(83)

(3)

(86)

5

(6)

(1)

Change in revaluation of natural gas in storage to net realizable value

(12)

(12)

(11)

(11)

(384)

(409)

(793)

(333)

(173)

(506)

$ (74)

$ 10

$ (64)

$ 51

$

(2)

$ 49

23. Other revenue

15 Months

12 Months

Ended March

Ended

December 31, 2014

(millions)

31, 2016

Natural gas liquid sales

$ 11

$

8 4 1 1

Compression and gathering services

4 1 –

Royalty revenue

Other

$ 16

$ 14

During the period, the Corporation’s non-rate regulated compression and gathering services were reclassified from transportation and storage to other revenue. This reclassification resulted in a $4 million increase to other revenue in the 2014 comparative figures.

24. Revenue collected for and paid to municipalities The Corporation is required to remit to 109 urban municipalities, in accordance with the provisions of The SaskEnergy Act , an amount calculated as either three per cent or five per cent of natural gas sales to customers within the respective municipality. These municipal payments are charged to customers and are then remitted to the respective municipalities. During the period, the amount collected for and paid to municipalities, which was recognized on a net basis in operating and maintenance expense, was $26 million (2014 – $19 million). In accordance with the provisions of The SaskEnergy Act , the Corporation is required to collect, from specific customers, an amount based on the value of natural gas transported on their behalf. The Corporation in turn pays the amount collected to the related municipalities. During the period, the amount collected for and paid to municipalities, which was recognized on a net basis in operating and maintenance expense, was $2 million (2014 – $2 million).

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2015-16 ANNUAL REPORT SASKENERGY

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