2019-20 SaskEnergy Annual Report

2019-20 SaskEnergy Annual Report

ANNUAL REPORT 2019-20

Mission Deliver natural gas in a safe, reliable, affordable way. Vision Create customer value through safe, innovative energy solutions. Values SAFETY

We are always committed to our safety, the safety of our team and the public.

ACCOUNTABILITY We are accountable for our decisions, our actions and the results.

SPIRIT We create a positive and dynamic work environment that recognizes achievement and balance while supporting business success.

COLLABORATION We succeed through strong internal and external relationships, trust and open communication.

Our Business SaskEnergy is Saskatchewan’s natural gas distribution and transportation company serving residential, farm, commercial, and industrial customers. Our strong and vibrant workforce of more than 1,100 employees work in more than 50 locations across the province and serve more than 399,000 customers in 93 per cent of Saskatchewan communities. SaskEnergy owns and operates nearly 71,000 kilometres of distribution lines and more than 15,000 kilometres of transmission gas lines. Through our subsidiary, TransGas Limited (TransGas), we own and operate natural gas compression, storage and transmission facilities within Saskatchewan. TransGas transports natural gas for producers, industrial and commercial customers, as well as for SaskEnergy. Another subsidiary, Many Islands Pipe Lines (Canada) Limited (MIPL), owns a large diameter, low-kilometre transmission gas line system that transports natural gas over the Alberta, Manitoba and United States borders. We recognize the critical role we play in delivering essential energy to our customers and the importance of providing our service in a way that meets their evolving expectations. Through the safe, reliable and affordable delivery of natural gas, along with energy efficiency and public safety programming, SaskEnergy strives to produce high levels of service while providing customers with innovative energy solutions. SaskEnergy’s number one priority is to maintain a safe and reliable natural gas line system and we are proud to say that we have a 99.9 per cent reliability rating. Thanks to our comprehensive and well-coordinated gas line safety and integrity program, and the efforts of our provincial workforce, customers rarely experience an unplanned outage. We are committed to the communities we serve. SaskEnergy works to strengthen relationships and partnerships with stakeholders, including local communities, businesses, regulatory agencies and Indigenous groups and organizations. We are also committed to environmental stewardship in our operations as we anticipate Saskatchewan’s future energy requirements and ensure we have the technology and processes in place to reduce our environmental impact. SaskEnergy’s dedicated team of employees demonstrates our corporate values of Safety, Accountability, Spirit and Collaboration each day through their work and continue to rise to the challenge of a changing industry and the increased demand for natural gas in Saskatchewan.

Contents

5 6 7 8

CORPORATE PROFILE LETTER OF TRANSMITTAL MINISTER’S MESSAGE CHAIR’S MESSAGE

Management’s Discussion and Analysis PRESIDENT’S MESSAGE 11 FINANCIAL AND OPERATING HIGHLIGHTS 16 LOOKING BACK AT 2019-20 9 18 INTRODUCTION 18 STRATEGIC SCORECARD MEASURES 25 INDUSTRY OVERVIEW 27 CONSOLIDATED FINANCIAL RESULTS 35 LIQUIDITY AND CAPITAL RESOURCES 36 CAPITAL ADDITIONS 37 OUTLOOK 37 RISK MANAGEMENT AND DISCLOSURE 40 CRITICAL ACCOUNTING POLICIES AND ESTIMATES 42 ACCOUNTING POLICY CHANGES

Consolidated Financial Statements

44 MANAGEMENT’S RESPONSIBILITY FOR FINANCIAL STATEMENTS 45 MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING 46 INDEPENDENT AUDITOR’S REPORT 48 CONSOLIDATED STATEMENT OF FINANCIAL POSITION 49 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 50 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 51 CONSOLIDATED STATEMENT OF CASH FLOWS 52 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Corporate Governance

83 BOARD OF DIRECTORS 89 EXECUTIVE COMMITTEE 92 CORPORATE GOVERNANCE DISCLOSURE 101 STAKEHOLDER ENGAGEMENT 103 SUPPLEMENTARY INFORMATION 105 GLOSSARY OF KEY SUCCESS MEASURES 108 GLOSSARY OF NATURAL GAS MEASUREMENTS 109 SASKATCHEWAN NATURAL GAS TRANSMISSION LINES

p.4

Corporate Profile

Crown Investments Corporation of Saskatchewan

SaskEnergy Incorporated

Many Islands Pipe Lines (Canada) Limited

Bayhurst Gas Limited

Saskatchewan First Call Corporation

TransGas Limited

Transmission and Storage

Natural Gas In Storage

Inter-provincial Transmission

Underground Facility Screening and Notification Service

BG Storage Inc.

Storage Joint Arrangement

Bayhurst Gas Limited (Bayhurst) owns, produces and sells natural gas from its two storage facilities in the western area of Saskatchewan. BG Storage Inc. (BGSI) is a wholly owned subsidiary of Bayhurst Gas Limited and owns a 50 per cent interest in a natural gas storage business, which is operated through a joint arrangement with Faro Energy Ventures Ltd. Many Islands Pipe Lines (Canada) Limited (MIPL) is a transmission company that owns eight transmission gas line interconnections to Alberta, two into the United States, and one into Manitoba, all of which connect to the TransGas system. MIPL is regulated by the Canada Energy Regulator. Saskatchewan First Call Corporation (Sask 1st Call) provides a centralized “Click Before You Dig” underground facility screening and notification service. Sask 1st Call was established primarily for safety reasons to maintain a >Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 81 Page 82 Page 83 Page 84 Page 85 Page 86 Page 87 Page 88 Page 89 Page 90 Page 91 Page 92 Page 93 Page 94 Page 95 Page 96 Page 97 Page 98 Page 99 Page 100 Page 101 Page 102 Page 103 Page 104 Page 105 Page 106 Page 107 Page 108 Page 109 Page 110

Made with FlippingBook Ebook Creator