MANAGEMENT’S DISCUSSION AND ANALYSIS
Supply Access As natural gas production within Saskatchewan declines, SaskEnergy becomes increasingly reliant on importing natural gas from outside the province. Importing natural gas creates a reliance on interconnecting pipelines, which becomes more critical as the amount of imported gas increases. It also increases the complexity of supply planning, increases operating costs, and has potentially negative impacts on Saskatchewan end users. SaskEnergy manages this risk through long-term supply and demand forecasting, and consultation with large existing and potential customers. For the distribution utility, declining provincial natural gas production adds complexity to the supply planning process that is managed through the natural gas procurement strategy. Specific strategic initiatives undertaken to mitigate this risk include utilization of storage facilities to support transmission capabilities, development of a provincial flare gas capture strategy, and utilization of liquefied natural gas to meet peak demand. Cyber, Physical and Operational Security Cyber security comprises technologies, processes and controls that are designed to protect systems, networks and data from cyber attacks. Effective cyber security reduces the risk of cyber attacks, and protects organizations and individuals from the unauthorized exploitation of systems, networks and technologies. Cyber-attacks can disrupt and cause considerable financial and reputational damage to even the most resilient organization. In a cyber attack, a Corporation may lose assets, reputation and business, and potentially face regulatory fines and litigation — as well as the costs of remediation. Physical security measures are designed to deny unauthorized access to facilities, equipment and resources and to protect personnel and property from damage or harm. Physical security is the protection of personnel, hardware, software, networks and data from physical actions and events that could cause serious loss or damage to the Corporation. This includes protection from fire, flood, natural disasters, burglary, theft, vandalism and terrorism. Operational security is a risk management process that encourages managers to view operations from the perspective of an adversary in order to protect sensitive information from falling into the wrong hands. Strategic initiatives undertaken to mitigate cyber, physical and operational risks include business continuity and disaster recovery plans, IT security processes and a security threat response plan.
environmental assessments and public awareness, SaskEnergy works with landowners and other interest groups to identify and develop appropriate responses to concerns regarding expansion and development of infrastructure. Pipeline, Facility or Operational Failure Pipeline, facility or operational failure could disrupt the effective operation of SaskEnergy’s natural gas storage, distribution and transmission infrastructure, and have potentially negative effects on employee and public safety, the environment and customers. Operational hazards include severe weather conditions, fire, human error, mechanical failures, third-party pipeline encroachment, hazardous materials and acts of civil disobedience and sabotage. The occurrence of any of these events, many of which are not within control of the Corporation, could increase operating costs or reduce revenues. Some of the primary processes used to mitigate the Corporation’s pipeline, facility and operational risks include system integrity programs, public awareness and safety programs, employee and operator training, plus environmental policies and procedures. The financial impacts of these risks are also mitigated, where possible and appropriate, through insurance. Employer/Employee Relationship The Corporation’s relationship with its employees is important to the continued safe operation of its transmission, storage and distribution systems. Possible consequences of a deteriorating relationship with employees include loss of productivity and labour disruption. SaskEnergy maintains open dialogue with its union through joint union-management committees, the collective bargaining process, a focus on safety and providing an environment that offers employees a healthy work/life balance.
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