SaskEnergy sees strong growth in 2010
Nearly 5,000 new customers were added to SaskEnergy’s natural gas distribution system at the end of 2010, bringing the total to 352,000 customers. This is well above the 10-year average, and will bring SaskEnergy’s customer base to its highest level ever.
“We continue to support the growing energy needs of Saskatchewan through increased customer growth, as well as higher demand from key sectors such as potash and new natural gas electrical generation,” said Doug Kelln, President and Chief Executive Officer of SaskEnergy. “Our employees remained committed this year to providing safe and reliable service, through the challenges created by such a high level of construction activity, combined with extremely wet conditions for excavation and pipeline installation work.”
According to Kelln, SaskEnergy has balanced the increased cost pressures associated with system expansion by stressing productivity improvements and internal cost reductions.
“In 2010, we met that reality within our existing rate structure through sharpening our focus on productivity. Building off nearly $11 million of efficiency gains realized in 2009/2010, we have identified a further $5 million of new cost savings initiatives in 2011. The productivity improvements were achieved through strong employee leadership throughout the province.”
SaskEnergy’s current commodity rate of $4.55/Gigajoule (GJ), which was reduced as of Nov. 1, is at the lowest level since 2001; and delivery rates for SaskEnergy residential customers are still the lowest in the country.
“We plan to advance some of our natural gas price management strategies, given these low historical open market levels, to capture some advantageous current market pricing for 2011,” Kelln added.