2015-16 SaskEnergy Annual Report

Customer Satisfaction

SaskEnergy

The SaskEnergy customer satisfaction measure expresses, in percentage terms, the proportion of customers surveyed who rated their overall satisfaction with SaskEnergy’s service as a 5, 6, or 7 on a 7-point scale. Positive responses such as these indicate that customers view SaskEnergy service positively and provide a strong indication that the customer service tools, policies and staff are effectively meeting the needs of customers. The data for this measure is obtained from annual customer surveys conducted by independent market research firms. This number is derived from an annual online survey that is provided to all TransGas customers. Customer satisfaction is measured on a scale of 0 to 5, with 5 being the highest level of satisfaction. The survey contains 15 questions which, in turn, are subdivided to gain detailed feedback on various aspects of the service being evaluated. An average is taken on the responses to all questions and reported as a percentage.

TransGas

ACHIEVING GROWTH

Business Growth Investment

Core Growth – SaskEnergy and TransGas Revenue Growth

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.

Diversified Non-Core Business

Return on Equity

This measure is calculated as the return earned by the Corporation on the equity that has been invested in non-core business activities. This metric has been discontinued and is replaced by the Return on Non-Core Assets metric starting in 2016-17. This metric tracks the return earned by the Corporation from its investment in non-core assets. The return is defined as earnings before interest and taxes. The fixed assets includes all of Bayhurst, BESCO & BGSI fixed assets plus gas inventory. Inventory value was included given that the returns generated by Bayhurst gas marketing & BGSI are inventory dependent. This measure tracks the capital invested in non-core business activities by SaskEnergy and its subsidiaries as well as third parties.

Return on Non-Core Assets

Total Capital Investment

Percentage of Third-Party Capital Investment Associated Gas Capture as a Percentage of 2014 Saskatchewan Sourced Volumes

The percentage that is third-party capital has also been identified.

This is a new metric for 2016 that reflects the Corporation’s efforts related to increasing natural gas supply through associated gas capture. It is reported as a percentage of 2014 Saskatchewan Sourced Volumes as a base year to mitigate the impact of declining Saskatchewan natural gas production. The result will be reported using actual natural gas volumes as provided by the Saskatchewan Ministry of Economy. This measure is calculated as the net revenue from Bayhurst Gas Limited (including BGSI and BESCO). In aggregate, this metric represents the value being generated by the non- regulated business activities that leverage corporate expertise and private sector alliances.

Net Revenue

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2015-16 ANNUAL REPORT SASKENERGY

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