SaskPower and SaskEnergy Release Annual Reports as SaskPower Reveals Substantial Decline in Net Income | Globalnews.ca

The 2021-2022 annual reports of SaskEnergy and SaskPower have been released with the focus on the financial performance of the latter in the previous fiscal year.

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

Officials say the drop is largely due to rising fuel costs, rising power purchase costs and low water levels in Lake Diefenbaker that weren’t enough to create much hydroelectricity.

As a result, SaskPower bought more natural gas and coal as electricity demand grew 4.1% in the province.

“I think it also shows how vulnerable we are to weather conditions with the good work that SaskPower and its partners have done in diversifying the power supply,” Morgan said Wednesday at the legislative building.

Morgan added that there will be additional financial pressures in the coming months or years, due to the commissioning of new energy sources, if the province has to rely on coal while waiting for other options to come on stream.

SaskPower anticipates that energy demand will increase another 1.4 percent in this fiscal year.

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

Revenue was reported at $2.885 billion in 2021-22, a jump from $2.771 billion last fiscal year.

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Expenses totaled $2.874 billion, up from $2.611 billion in 2020-2021.

An investment of $922 million was made for SaskPower projects last year, a significant increase from $693 million last year.

The Crown corporation set aside $490 million for growth projects such as new generation facilities and expanded grid capacity, while $385 million was earmarked for repairs and upgrades for aging generation, transmission and distribution infrastructure.

“In 2021-22, SaskPower made significant strides toward a cleaner energy future for Saskatchewan,” said SaskPower CFO Troy King.

“We expanded our company’s zero-emissions wind power capacity by 385 megawatts and commissioned Saskatchewan’s first utility-scale solar installation. All low-emission and zero-emission generation options are still on the table as we work to significantly reduce greenhouse gas emissions.”

SaskEnergy Annual Report

The previous fiscal year saw SaskEnergy focus on customers and the environment, the company presented in its annual report on Wednesday.

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

SaskEnergy said the increase was due to “a one-time accounting adjustment related to the conclusion of the litigation that gave SaskEnergy title to its headquarters building in Regina.”

“(The litigation) concluded in this current year, and as a result of the conclusion and award of the building to SaskEnergy, we were required by accounting standards to report a non-cash accounting adjustment that actually reflected the lease payments we made during the period. of time it was under litigation,” explained Christine Short, who serves as SaskEnergy’s chief financial officer.

The company said a colder-than-normal winter, along with 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.

SaskPower declared a $22 million dividend to Crown Investments Corporation, $1 million more than last year. SaskPower mentioned that the dividend will go into 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, an increase of $526 million from last year.

The expense side also saw an increase from $467 million last year to $471 million in 2021-2022.