SaskPower Invests in Saskatchewan's Future
July 14, 2016
SaskPower continues to invest heavily - $1.2 billion this fiscal year - in the future of Saskatchewan's electrical system, as the province's power utility continues to meet the challenge of growing demand, a commitment to the environment, and an aging grid.
SaskPower's 2015-16 Annual Report was tabled in the Saskatchewan Legislative Assembly today. Because of the change in SaskPower's fiscal year, the document covers Jan. 1, 2015 - March 31, 2016.
In those 15 months, SaskPower's operating income was $124 million. The company also recorded $98 million in non-cash losses, largely the result of outstanding natural gas contracts. This resulted in a net income of $26 million.
Capital-related expenses, along with the non-cash losses, were the main reasons for lower net income.
"Keeping Saskatchewan strong continues to be the priority for our province, and SaskPower is investing in our future," says Minister Responsible for SaskPower Bill Boyd. "We will continue to invest in the infrastructure that helps our province be a great place to live and work."
In the future, SaskPower will invest about $1 billion a year on capital projects to renew and maintain aging facilities, lines and poles as well as the necessary infrastructure to meet demand growth.
"We continue to operate in an environment where we need to balance the renewal of our aging electrical system while meeting customers' growing demand for power," says Mike Marsh, SaskPower President and CEO. "We'll continue to look for ways to increase our efficiency and effectiveness, so that we can provide reliable, sustainable and cost-effective power to the people of Saskatchewan."
Notable achievements in 2015-2016 include:
- Announcing plans to double the percentage of renewable generation capacity, from about 25 per cent today to as much as 50 per cent by 2030 (reducing SaskPower's greenhouse gas emissions by approximately 40% from 2005 levels);
- Commissioning the $510 million expansion of Saskatoon's Queen Elizabeth Power Station, which added 204 MW to the power grid;
- Finishing the $327 million I1K transmission line, linking Island Falls and Key Lake in the north to offer improved service and reliability to customers in that region;
- Launching the Shand Carbon Capture Test Facility, which provides a platform to assess carbon capture technologies on a commercial scale;
- Establishing a global center for carbon capture and storage knowledge in partnership with BHP Billiton;
- Reaching an agreement with Manitoba Hydro to import 100 megawatts of power beginning in 2020, adding to the security of supply;
- Investing nearly $1.9 million in the communities and organizations that make the province a great place to be, with a focus on educational programming in workforce excellence, safety and conservation.