Revenue
Delivery revenue, transportation and storage revenue and customer capital contributions, as reported in the consolidated financial statements, were as follows:
September 30, Three months ended
Six months ended September 30,
(millions)
2020
2019 Change
2020
2019 Change
Delivery revenue
$
41 46
$
41 48 11
$
-
$
99 93 10
$
95 94 20
$
4
Transportation and storage revenue Customer capital contributions
(2) (3)
(1)
8
(10)
Revenue
$
95
$
100
$
(5)
$
202
$
209
$
(7)
Delivery Revenue
Delivery revenue is driven by the number of customers and the amount of natural gas they consume. As residential and commercial customers consume natural gas primarily as heating fuel, weather is the external factor that most affects delivery revenue. Delivery revenue of $99 million for the six months ended September 30, 2020 was $4 million higher than the same period in 2019. The increased delivery revenue is due to spring weather for three months ended June 30, 2020 being 18 per cent colder than normal and 15 per cent colder than the same three months in 2019-20.
Transportation and Storage Revenue
The Corporation generates transportation revenue by receiving gas from customers at various receipt points in Saskatchewan and Alberta, and delivering natural gas to customers at various delivery points in the province. The transportation toll structure consists of a receipt service charge that customers pay when they put gas on to the natural gas transportation system, and a delivery service charge, which customers pay when they take delivery off the natural gas transportation system. Gas delivered to the system by customers is considered to be part of the TransGas Energy Pool (a notional point where producers, marketers and end users can match supplies to demand) until it is delivered to the end-use customer. For receipt and delivery services, the Corporation offers both firm and interruptible transportation. Under a firm service contract, the customer has a right to deliver or receive a specified quantity of gas on each day of the contract. With a firm contract, customers pay for the amount of capacity they have contracted for whether they use it or not. Under an interruptible contract, customers may deliver or receive gas only when there is available capacity on the system and pay receipt and delivery tolls when they deliver or receive gas.
Integral to the Corporation’s transmission system are several strategically located natural gas storage sites, which have the capacity to provide operational flexibility along with a reliable and competitive natural gas storage service.
Transportation and storage revenue was $93 million for the six months ended September 30, 2020, $1 million lower than the same period in 2019. Contracted demand and interruptible volumes relating to export sales decreased by $4 million as demand for natural gas in eastern Canada declined. This is partially offset by increased delivery service revenue of $3 million, as Industrial customer and power generation related load growth increased demand for natural gas within the province and is driving higher contract demand transportation revenue.
2020-21 Second Quarter Report
12
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