MANAGEMENT’S DISCUSSION AND ANALYSIS
Environmental SaskEnergy continues to concentrate on environmental sustainability throughout its operations by measuring the intensity of greenhouse gas (GHG) emissions relative to the amount of compression used to transport natural gas. This measure is calculated using a cumulative average at the end of each quarter. The 2018-19 compressor emissions reduction target was exceeded by 17 per cent. As the compressor fleet is modernized, increased operating efficiency is being reflected through decreased emissions intensity. The federal government published new oil and gas methane regulations in April 2018 to reduce methane releases from the Canadian oil and gas sector. The regulations will apply to SaskEnergy’s transmission and storage activities and will focus on reducing leaks and routine venting of natural gas. The federal Greenhouse Gas Pollution Pricing Act (GGPPA) and regulations came into force on April 1, 2019. Under the Act, SaskEnergy is legally responsible for collecting and remitting a federal carbon tax on natural gas delivered to non-exempt customers, and TransGas is required to pay the carbon tax on emissions as part of the Output Based Pricing System (OBPS). SaskEnergy participated as an intervener in the Province’s constitutional challenge of the GGPPA; however, the Saskatchewan Court of Appeal ruled in
favour of the federal government that it does have the constitutional power to implement a carbon tax. It is expected the Province of Saskatchewan will appeal this decision to the Supreme Court of Canada. The federal government is also consulting with industry on the Clean Fuel Standard Regulations, which aim to reduce the carbon intensity of common fuels. SaskEnergy has been involved in regulatory development through engagement with industry associations (Canadian Energy Pipeline Association and the Canadian Gas Association) and Environment and Climate Change Canada. Final regulations for the natural gas portion of the Clean Fuel Standard are expected in 2023. In addition, the federal government published the Multi-Sector Air Pollutant Regulations for stationary combustion engines on June 28, 2016, which sets mandatory limits for Nitrogen Oxide emissions that impact air quality. The Corporation continues to work to ensure compliance will all new regulations. Community Relationship Total Contracts as a Percentage of Indigenous Labour is above target to the end of 2018-19. Commitment of Indigenous content was achieved on the awards of large construction projects.
BUSINESS & TECHNOLOGY OPTIMIZATION
Optimization supports better workflow, decision- making and enhanced customer and employee experience. Trusted information is securely available to staff, customers and stakeholders through integrated
business processes and systems. Investments increase effectiveness and/or generate internal efficiencies that enable SaskEnergy to create value.
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 To be reported on in 2019-20
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