SASKENERGY 2018-19 ANNUAL REPORT
d. Credit risk Credit risk is the risk of financial loss if a customer or counterparty to a financial or derivative instrument fails to meet its contractual obligations. The Corporation is exposed to credit risk through cash, trade and other receivables, debt retirement funds and derivative instrument assets. Credit risk related to cash and debt retirement funds is minimized by dealing with institutions that have strong credit ratings and holding highly-rated financial securities. The Corporation extends credit to its customers in the normal course of business and is at risk of loss in the event of non-performance by counterparties on certain of the financial and derivative instruments. To reduce its credit risk, the Corporation has established policies and procedures to monitor and limit the amount of credit extended to its customers and counterparties and may require letters of credit and other forms of security. As at March 31, 2019, the maximum credit exposure to a single counterparty was $9 million (2018 - $47 million). The carrying amount of financial and derivative assets represents the maximum credit exposure as follows:
(millions)
2019
2018
$
6 156 121 41
Cash Trade and other receivables Debt retirement funds Fair value of derivative instrument assets
$
- 141 106 61 308
$
324 $
At March 31, 2019, the exposure to credit risk for trade receivables by type of customer was as follows:
(millions)
2019
2018
$
98 30 4 24
Distribution customers Transmission and storage customers Asset optimization customers Other customers
$
93 22 9 17
$
156 $
Trade and other receivables
141
69
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