CAPITAL ADDITIONS
Capital additions, as reported in the consolidated financial statements, were as follows:
Three months ended September 30,
Six months ended September 30,
(millions)
2020
2019 Change
2020
2019 Change
Strategic
Customer growth System expansion
$
13 18 31
$
19 39 58
$
(6)
$
21 34 55
$
28 67 95
$
(7)
(21) (27)
(33) (40)
Operational
Risk management
17
31
(14)
29 11
43 13
(14)
Reliability of natural gas service
7 2
8 4
(1) (2)
(2) (2)
Business and technology optimization
4
6
26
43
(17)
44
62
(18)
Capital additions
$
57
$
101
$
(44)
$
99
$
157
$
(58)
Capital additions during the six months ended September 30, 2020 of $99 million were $58 million lower than prior year as spending declined, primarily during the second quarter of 2020-21 compared to 2019-20.
Higher system expansion spending of $29 million on transmission urban infrastructure projects in 2019 resulted from growth in and around the City of Saskatoon. This consisted of a multi-year initiative that addressed increased natural gas capacity and moving high pressure transmission lines further away from populated areas. The initiative was completed in 2019-20 and is the primary driver of 2019 system expansion spending being $33 million higher in 2019 than 2020. Spending on customer growth projects declined $7 million in 2020 compared to 2019, a result of the economic downturn resulting from the effects of a suppressed oil and gas market and COVID-19. This consists of a $4 million decrease in spending on distribution system mains and services growth projects in urban and rural areas, combined with spending on transmission system delivery service tie-ins declining $4 million. Both declines are a result of decreasing customer demand for new services and customers deferring capital projects in 2020. The declines were partially offset by higher spending of $1 million in 2020 on distribution system projects relating to large industrial customers, as industrial sectors of the provincial economy remain less impacted by the effects of the oil and gas market or COVID-19. Risk management spending on distribution system integrity projects declined $14 million year-over-year as service upgrade projects have been reduced or deferred in 2020, while spending on transmission system integrity projects was consistent year-over-year.
2020-21 Second Quarter Report
16
Made with FlippingBook Ebook Creator