SaskEnergy

SaskEnergy delivers safe, reliable and affordable natural gas to homes, businesses and industry throughout Saskatchewan. Its 71,000-kilometre distribution system serves 93% of Saskatchewan communities and over 400,000 customers. The Crown corporation has 1,100 employees in more than 50 locations across the province.

SaskEnergy provides two services related to natural gas deliveries to its customers:

• Gas Supply Service (Commodity); and
• Gas Delivery Service

Gas Supply Service

Gas Supply Service is the supply of the natural gas commodity. This service is provided to customers who purchase their natural gas supply from SaskEnergy. Natural gas is sold to customers at cost, along with expenses incurred in the procurement of gas. SaskEnergy does not incur a profit or loss on the sale of the commodity.

Gas Delivery Service

Gas Delivery Service includes storage and transportation as well as all distribution facilities and operations necessary for delivery of natural gas to customers throughout the year. SaskEnergy earns its approved return on its investment through its delivery service.

The cost of the delivery service is recovered through a two part rate:

1. A Basic Monthly Charge (BMC), which is a fixed dollar amount per month, designed to recover the fixed costs attributed to cover customer care related costs including the customer service line, meter reading and customer account administration; and
2. A Delivery Charge, which is a volumetric charge applied to each cubic meter of natural gas used by the customer. The Delivery Charge will vary from month to month based on a customer’s consumption. The Delivery Charge attempts to recover capacity related costs associated with the distribution system including storage and transportation.

The relationship of services and the rates are illustrated in the chart below.