SaskPower, SaskEnergy release annual report as SaskPower reveals substantial decline in net income. Globalnews.ca

2021-2022 annual reports For susenergy And suspower are issued with a spotlight focused on the financial performance of the latter in the previous fiscal year.

SaskPower’s annual report, which was presented Wednesday, shared that the company reported net income of $11 million – a substantial decrease from 2020-2021 net income of $160 million.

Officials say the decline is mainly as a result of rising fuel costs, increased electricity costs and low water levels in Lake Dieffenbaker that were not high enough to generate much hydroelectricity.

As a result, SaskPower bought more natural gas and coal as electricity demand in the province increased by 4.1 percent.

“I think this reflects vulnerability to weather conditions as well as the good work that SaskPower and its partners have done with respect to diversifying power supplies,” Morgan said Wednesday at the Legislative Building.

Morgan said there will be additional financial pressures in the coming months or years – due to new power sources coming online – if the province has to rely on coal to bring other options online.

SaskPower expects electricity demand to grow by a further 1.4 per cent in the current fiscal.

“Most of the new sources that will come online will be more expensive than coal or natural gas,” Morgan said.

Revenue in 2021-22 was reported at $2.885 billion, up from $2.771 billion in the previous fiscal.

Spending increased from $2.611 billion to $2.874 billion in 2020-2021.

$922 million was invested for SaskPower projects last year, a huge increase from last year’s $693 million.

Crown Corporation set aside $490 million for development projects such as new generation facilities and expanded grid capacity, while $385 million went toward repairs and upgrades for aging generation, transmission and distribution infrastructure.

“In 2021-22, SaskPower has taken significant steps toward a clean energy future for Saskatchewan,” said Troy King, SaskPower’s CFO.

“We increased our company’s zero-emissions wind power capacity to 385 MW and launched Saskatchewan’s first utility-scale solar facility. All low and non-emission production options are still on the table as we significantly reduce greenhouse gas emissions. to work.”

Sask Energy’s Annual Report

SaskEnergy focused on customers and the environment over the past fiscal year, the company presented Wednesday in its annual report.

Net income from operations was reported at $82 million, an additional $23 million compared to SaskEnergy’s 2020-2021 performance.

SaskEnergy said the increase was due to “a one-time accounting adjustment related to the closing of the lawsuit that awarded the SaskEnergy title to its head office building in Regina.”

“(The litigation) was terminated in this current year, and as a result of the conclusion and the handing over of the building to SaskEnergy, accounting rules required us to report a non-cash accounting adjustment that was actually less than the lease we made. reflects the payment. Over a period of time it was subject to litigation,” explained Christine Short, who serves as SaskEnergy’s CFO.

The company said colder than normal, higher demand for natural gas from industrial customers and the addition of more than 2,800 new distribution customers also contributed to higher net income from operations, the company said.

SaskPower declared a dividend of $22 million to Crown Investment Corporation, an increase of $1 million over the previous year. SaskPower noted that the dividend will go to the province’s General Revenue Fund to support public services such as health care and education, and help pay for provincial infrastructure such as schools and roads.

Revenue ended at $553 million, up from $526 million last year.

On the expenditure side also it increased from $467 million last year to $471 million in 2021-2022.

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