SASKENERGY 2017-18 ANNUAL REPORT
PRESIDENT’S MESSAGE
Any analysis of SaskEnergy’s annual performance should begin with the headings of “safety”, “reliability”, and “affordability” — the three pillars of our commitment to customers across Saskatchewan. Safety-related efforts in 2017-18 led to a reduction in third-party contacts with SaskEnergy’s gas pipelines, which are now down a total of 37 per cent since 2013. SaskEnergy also continued work to systematically upgrade service connections in communities prone to ground shifting and move high pressure pipelines away from developed areas in growing cities. Meanwhile, overall system reliability has increased, thanks to the continued development of capital plans to increase flexibility in acquiring and transporting gas supply. Throughout the year, approximately $4.2 million in savings was realized through various efficiency and process improvements. These efforts contributed to SaskEnergy’s ability to provide the lowest residential delivery rate in Western Canada, while also achieving high levels of satisfaction from our residential, commercial and industrial customers. Building on this foundation of success, the SaskEnergy Board of Directors and leadership came together in 2017-18 to develop the SaskEnergy 2018-2023 Strategic Plan. That process highlighted how significantly SaskEnergy’s business environment has changed in recent years and the accompanying changes that will be required for our company to continue to meet customer and stakeholder demands. Primary among the factors driving SaskEnergy’s business decisions is the ongoing shift in provincial gas supply and demand. In 2017-18, approximately 65 per cent of the gas consumed in the province was imported from Alberta and that figure is expected to grow each year, increasing our reliance on interconnecting pipelines. Meeting provincial demand also requires investment in our own infrastructure, as SaskEnergy’s pipeline system is now being re-configured in certain areas of the province. While these investments will contribute to higher income, they will also increase operating costs and put pressure on delivery and transportation rates. To meet SaskEnergy’s mission of safe, reliable and affordable natural gas delivery, a focus on SaskEnergy’s core operations will be required. Along with the other members of the SaskEnergy Executive team, I extend my thanks to our skilled, dedicated and professional teams across the province for their contributions in 2017-18. Amid ever-changing market factors and economic conditions, our people have been the constant factor and remain the cornerstone of our future success. [Original signed by K. From] Ken From President and Chief Executive Officer, SaskEnergy
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