SaskEnergy 2018-19 Annual Report

SASKENERGY 2018-19 ANNUAL REPORT

b. Contingencies The Corporation is involved in litigation in relation to a natural gas incident that occurred in 2014 in the community of Regina Beach, Saskatchewan. The Corporation does not expect the outcomes to result in any material financial impact.

18. UNREALIZED MARKET VALUE ADJUSTMENTS

(millions)

2019

2018

$

13 19

Change in fair value of natural gas derivative instruments Change in revaluation of natural gas in storage to net realizable value

$

46 (12)

$ 32 $ 34 Unrealized market value adjustments represent the net income impact of measuring certain financial and derivative instruments at fair value subsequent to initial recognition (Note 8) and measuring natural gas in storage at the lower of weighted average cost and net realizable value (Note 6). These adjustments represent the change in the carrying amount of the related item during the period and are dependent on the market prices and expected delivery dates at the end of the reporting period.

19. NATURAL GAS SALES AND PURCHASES

2019

2018

Asset Optimization Total

Asset Optimization Total

Commodity

(millions)

Commodity

NATURAL GAS SALES Natural gas sales to commodity customers Realized on natural gas derivative instruments

$

228 $

- $

228 $

207 $

- $

207 267

- -

224

224

18

249

Change in fair value of natural gas derivative instruments

(4)

(4)

-

2

2

228

220

448

225

251

476

NATURAL GAS PURCHASES Realized on natural gas derivative instruments Change in fair value of natural gas derivative instruments Change in revaluation of natural gas in storage to net realizable value

(183)

(213)

(396)

(184)

(223)

(407)

35

(18)

17 19

(2)

46

44

-

19

-

(12)

(12)

(148)

(212)

(360)

(186)

(189)

(375)

$

80 $

8 $

88 $

39 $

62 $

101

20. DELIVERY REVENUE

(millions)

2019

2018

$

119 164 6

$

116 150 5 271

Basic monthly charge Delivery revenue Other

$

289 $

75

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