Management’s Discussion and Analysis
The number of residential customers connecting to SaskEnergy’s distribution system is expected to be 3,000 new customers in 2022-23. However, customers continue to reduce their natural gas consumption by becoming more energy efficient, which results in limited revenue growth from distribution utility customers. Continued focus on core operations and operational excellence will safeguard SaskEnergy’s financial strength into the future. In 2022-23, income from operations is projected to be $110 million, which is an increase of $28 million from the 2021-22 result. The increase is primarily due to higher asset optimization margins, which are driven by unforeseen market volatility, and continued focus on efficient operations. Cost savings are partially offset by increased inflationary pressures impacting fuel prices, vehicle maintenance and materials and supplies. Initiatives targeted to support emissions reductions from both internal operations and customer-focused initiatives also create cost pressure for SaskEnergy. The Corporation will achieve cost savings through business process improvements, leveraging technology and collaboration with other Crown corporations and executive government. SaskEnergy is committed to providing solutions and service that benefit customers and Saskatchewan by leveraging the Corporation’s expertise and the province’s private sector. Throughout 2022-23, SaskEnergy will make $182 million in net capital investments in the province, including maintaining the safety and reliability of the natural gas transmission and distribution systems, meeting regulatory compliance and optimizing the Corporation’s business systems.
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