2020-21 SaskEnergy Corporate Governance

Stakeholder Engagement

• Annual approval of the Corporation’s business/ performance management plan, including capital expenditures through its shareholder, CIC. • Annual disclosure through Crown and Central Agencies, a public legislative committee of government, of all payments greater than $50,000 to employees and suppliers, and of all grants, donations and sponsorships greater than $5,000. • Appearances before public committees of the legislature, including Crown and Central Agencies, by senior executives to answer questions relating to the business of the Corporation in preceding years. • Compliance with public requests for information, SaskEnergy also works cooperatively with CIC, the office of the Minister Responsible for SaskEnergy and Executive Council Communications to generate dialogue, understanding and support for corporate initiatives that affect stakeholders. These communications tools include briefing notes, face-to-face meetings and other information packages to ensure elected officials are able to represent the Corporation in the public and through the media, by speaking knowledgably on issues regarding the business operations of SaskEnergy. The Corporation is also expected to respond expediently to correspondence and case work submitted by the office of the Minister Responsible for SaskEnergy. Project-based Communications SaskEnergy’s distribution, transmission and storage projects can impact the communities in which they are occurring. In addition to fully complying with all legal and regulatory considerations, SaskEnergy will typically hold consultations with affected stakeholders in areas where projects are of greater scope or longer duration. Such communications initiatives include public open houses and meetings with local municipal councils, First Nations representatives and other stakeholders. These initiatives allow company officials to explain the environmental impacts of proposed activities, including proposed mitigation plans. They also provide opportunities to enhance general understanding of balancing the interests of The Freedom of Information and Protection of Privacy Act . the projects economic benefits and of natural gas as a heating source. Because Saskatchewan has approximately 75 First Nations Bands and 12 Métis Regions, a dedicated Indigenous Engagement group exists to better foster consultation, dialogue and relations. Regulatory Communications SaskEnergy is required to file any applications for delivery and commodity rate changes with the Saskatchewan Rate Review Panel (SRRP), an advisory panel that

provides formal recommendations to the Provincial Cabinet. The applications are available to the public. Typically, the SRRP will ask for additional information to assist in its review, and a public interaction component is provided through public meetings. SaskEnergy has not increased its commodity rate or delivery service rate since 2018. Its current commodity rate of $2.575 per GJ, the lowest in over 20 years, has been in effect since April 1, 2019. SaskEnergy has the third lowest total residential natural gas utility rate in Canada. TransGas’ proposed rate changes are discussed through the TransGas Customer Dialogue, a proxy with representatives from the producer, industrial end-user and gas marketer communities. After rate changes are discussed through Dialogue, they are provided to the Provincial Cabinet for approval. TransGas changed its rates for transportation and storage services, effective April 1, 2021. Rates increased between 6.8 per cent and nine per cent, with an average increase of eight per cent across all rate classes. The rate change is due to increased costs incurred by TransGas to provide high quality, safe and reliable service while focusing on system integrity and facility infrastructure. The last rate increase occurred nearly three years ago, on May 1, 2018. Employee Communications SaskEnergy employees are the most credible people to tell its story and the Corporation regularly communicates with its workforce of more than 1,100 employees to provide prompt and accurate information. Communication focuses on initiatives and updates related to SaskEnery’s Business Plan and aims to increase employee understanding of the delivery of essential energy to customers, enhance understanding of the natural gas industry as a whole, increase knowledge of SaskEnergy’s safety practices and environmental stewardship, and make employees better able to engage in meaningful discussions about the natural gas industry with friends, family and acquaintances. Recognizing the value of face-to-face communication, SaskEnergy relies on Senior Leaders, managers and supervisors to share messages within and across work teams in regular meetings and discussions, as much as possible. Other communication methods include company- wide email messages (InfoFlashes) and a corporate intranet site (innergy), which allows employees to access information related to the Corporation, stay informed on upcoming events and initiatives, comment on and ‘like’ articles, and visit sites for specific department related information. SaskEnergy also produces corporate videos that serve as informative, educational tools to keep employees up-to-date on major projects and initiatives that are taking place within the Corporation.


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