Management’s Discussion and Analysis
SaskEnergy maintains over a 99 per cent reliability rating for delivering uninterrupted natural gas service to its customers. This is a great accomplishment considering the Corporation maintains almost 87,000 km of natural gas lines, which is slightly more than double the circumference of the planet Earth and is one of the largest gas line systems per number of customers in the world. SaskEnergy’s Leak Detection and Repair (LDAR) program seeks to minimize natural gas leaks, which results in more environmentally friendly and efficient operations, as well as increased safety of the system. Advanced technology used for this program, identifies more leaks at lower concentrations, typically before they are detectable by the public and well in advance of becoming hazardous. Currently, over 90 per cent of underground leaks are typically found by the Corporation. Based on integrity analysis and previous leak survey findings, SaskEnergy knows where to look and is able to focus on those areas proactively. This allows integrity work to be scheduled rather than conducted under emergency conditions, which are performed at a cost premium. The success of early detection of leaks and more efficient surveys allows SaskEnergy to take a risk-based approach to prioritize repairs, maximize operational resources and minimize safety risks. The Corporation has recently adopted a practice to install a small meter bypass fitting on residential customers’ natural gas services. SaskEnergy is required to exchange natural gas meters in compliance with Measurement Canada regulations. To perform work on a meter set with the new bypass fitting, a temporary flexible hose with an inline regulator is installed and allows meter exchange work to be performed without interrupting gas service to the customer. The initiative will result in a more efficient meter upgrade process and a significantly improved customer experience. The improved customer experience is achieved by the elimination of a customer appointment to perform typical meter exchanges: Technicians are no longer required to relight customer appliances because the natural gas service is not interrupted during the meter exchange; technicians are no longer required to enter the customer premise; the technician’s time on site is reduced with the use of a bypass fitting and the volume of gas released to the atmosphere is reduced when an exchange is completed with a bypass meter installed. The bypass fittings are currently being installed during new natural gas service installations, existing customer upgrades and riser alterations. Reliability of natural gas in service includes property purchases for corporate business and the enhancement and/or extension of the life of property through renovations, modifications and/or upgrades. These projects give customers a degree of confidence that natural gas demand will be met without failure or loss of service. Reliability of natural gas service spending increased in 2022 by $4 million as the Corporation’s investment returned to normal levels, after having to reallocate resources to customer-focused service upgrade and alteration projects in 2021. With the restoration of reliability investment programs in 2022, the Corporation is focusing on district regulator station, town border station and odorant facility upgrades. Business and technology optimization ensures that every investment in information technology, every resource allocated and every application in development or in production, meets the Corporation’s business goals. The 2022 investment in business and technology optimization equals the prior year. A Customer Portal project, to replace the Corporation’s online My Account portal, is on track to be implemented in the fourth quarter of fiscal 2022-23. The leading-edge portal will provide customers with updated functionality, more self-serve options in the future and will include full mobile capabilities. OUTLOOK SaskEnergy is entrusted with a key provincial asset in the natural gas transmission and distribution system and must ensure standards for safety and reliability are maintained. Safe and reliable service has always been a core priority for SaskEnergy and it will continue to be going forward. This is especially important now as the transition to cleaner energy may cause instability in other areas of the energy sector. The Corporation will continue to mature in the progress of addressing its emissions from operations and assisting customers in meeting their own sustainability goals. SaskEnergy recognizes customers are at the centre of its existence and it is important to proactively anticipate customer needs and expectations. The Corporation is committed to making it easy for customers to interact, transact and receive service when and how they want it. Modest incremental growth is expected from SaskEnergy’s industrial customers in 2022-23, primarily in the value-added agricultural sector and from gas-fired power generation. System expansion investments are expected to increase in and around the cities of Regina and Moose Jaw in 2023-24 as industrial customers require system expansion investment to meet their growing natural gas requirements.
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