SaskEnergy 2018-19 Annual Report

MANAGEMENT’S DISCUSSION AND ANALYSIS

FUEL OF CHOICE SaskEnergy is regarded as a trusted supplier of energy and, as a product, natural gas is regarded as a socially and financially sound choice for customers.

Natural gas prices are more competitive thanks to innovative transport and delivery strategies. Importantly, SaskEnergy has been successful in minimizing the environmental impact of its operations and supply.

March 31, 2018 Actual

March 31, 2019 Actual

March 31, 2019 Target

March 31, 2020 Target

March 31, 2021 Target

March 31, 2022 Target

March 31, 2023 Target

Strategic Measure Business Growth Investment Core Growth – SaskEnergy and TransGas Revenue Growth

5.7%

1.5%

3.2% 4.7% 4.0% 4.0% 4.0%

Efficient Operations Distribution Operation,

$324

$290

$336

$342

$347

$353

$360

Maintenance and Administration Costs per Customer

Competitive Residential Delivery Rates

Competitive with Industry

Competitive with Industry

Competitive with Industry

Competitive with Industry

Competitive with Industry

Competitive with Industry

Competitive with Industry

Transmission Operation,

6.3%

6.5%

7.0% 6.7% 6.4% 5.8% 5.4%

Maintenance and Administration Costs per Book Value of Assets Managed

Customer Satisfaction SaskEnergy

90% 84%

90% 92%

90% 90% 90% 90% 90% 90% 90% 90% 90% 90%

TransGas

Environmental Greenhouse Gas Emissions (Tonnes of CO 2 e/million Running Horsepower Hours) Community Relationship Total Contracts – Percentage of Indigenous Labour Content

326

324

395

325

325

325

325

18%

16%

16% 16% 17% 18% 19%

18

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