SaskEnergy annual report: Rates steady, $60M in dividends

The 2018-19 year was a good one for SaskEnergy’s books, and the next two could be a good one for people’s gas bills.

In a media release put out along with the Crown corporation’s annual report, Minister Responsible for SaskEnergy Bronwyn Eyre said rates won’t be raising anytime soon.

“SaskEnergy has already reduced its commodity rates to their lowest level in 20 years. Based on current market forecasts, the corporation anticipates that there will be no commodity rate increases for at least the next two years, which is good news for customers,” Eyre said in the media release.

The corporation also announced it will be starting a rebate program for high-efficiency furnaces starting Aug. 1.

The rebate will cover $650, or about 10 per cent of the cost, of a new furnace.

Crown financials

SaskEnergy had a good year on the books. Its consolidated net income for the past year was $166 million, which is $22 million more than the year before. Those numbers are after adjustments for market value versus contract price.

The company declared $60 million in dividends to the Crown Investments Corporation. That’s $21 million more than the year before, and $31 million more than in 2016-17.

The increase was driven by increased demand for natural gas. SaskEnergy distributed more natural gas to every sector, but the company says industrial sectors like enhanced oil recovery, power production, and mining drove the load growth.

February of 2019 was also colder than normal, with one day tying SaskEnergy’s all-time natural gas usage record from December 2017.

The NDP

According to Saskatchewan’s NDP, the high dividends returned to the province by SaskEnergy this year emphasize how important it is to keep the Crowns public.

“The track record of the Sask. Party selling off Crowns leaves us very concerned for their future, and in this annual report we see yet again just how important it is that we keep the Crowns in public hands,” NDP SaskEnergy Critic Danielle Chartier said in a media release.

The NDP’s leader, Ryan Meili, also criticized the furnace rebate. He said most people can’t afford the upfront cost of a new furnace anyway, and giving those who can afford it a rebate on part of the cost isn’t enough.

In a media release, Meili took the opportunity to tout his party’s “comprehensive energy transition incentive plan,” Renew Saskatchewan. He said the province needs a better system to help families, businesses, and producers transition to cleaner and higher-efficiency energy usage.