Saskatchewan’s Crown sector delivered strong financial results in 2019-20 despite significant challenges. The sector continued to provide excellent customer service, high-quality products and services, and improved infrastructure during a year that included volatile markets affecting investment returns, reduced customer demand due to low commodity prices, and an economic shut down as a result of the COVID-19 pandemic. Released individually, were the SaskTel, SaskGaming, SaskEnergy, SaskWater, and SaskPower annual reports.
“The Crown sector met the challenges of 2019-20 and still returned $350 million to the General Revenue Fund in 2019-20,” Crown Investments Corporation Minister Joe Hargrave said. “Crown corporations have consistently provided safe, reliable and affordable utilities to the people of Saskatchewan, and are up to the challenge for years to come.”
Net earnings of $435.4 million were recorded for the Crown in 2019-2020, and crown investment in capital renewal and expansion totaled $1.3 billion with a further $1.6 billion forecast annually over the next five years. A continuation of these capital investments are continuing to help stimulate the provinces economic recovery. Multiple customers were helped through the initial struggles COVID brought by supports implemented by a number of Crowns, as well as charitable community donations. The Crown Utility Interest Waiver Program, providing a payment deferral/interest waiver program and repayment plan; no data overage charges for people who were working, schooling, and entertaining children from home during the shut-down; and deferral of fees were provided.
The 2019-20 Annual Reports for Crown Investments Corporation (CIC) are available online at www.cicorp.sk.ca.
Click on the bolded text to view the full corporation report.
On July 8th, SaskTel reported a net income of $119.8 million, and operating revenues of $1,283.7 million, a year-over-year revenue growth of $5.8 million, reflecting continued wireless adoption and increased revenue from wireline growth services. SaskTel’s revenue is composed primarily of wireless network services and equipment revenue (44.9 per cent), maxTV service, internet and data (29.4 per cent), and local access, enhanced services, and long distance (15.2 per cent). Minister Responsible for SaskTel Don Morgan, talked about how customers are put at the centre of every decison they make, so it can be easier to do business across the board.
SaskTel President and CEO Doug Burnett said “We recognize that we must evolve our business to support customers’ shifting expectations and to continue providing exceptional service in a digital world."
As the company enters a new decade, he talked about how they find themselves on the cusp of monumental change in the industry and that technology continues to reshape customer interactions. He believes digital transformation continues to be the main driver reshaping customer and employee experiences across the business.
SaskGaming was forced to close Casinos Regina and Moose Jaw due to the pandemic, but the difficult choice did not detract from the success of the corporation in 2019-20. A net income of $40.2 million was reported for the 12-month period ending March 31, 2020 in the corporations annual report.
“Despite the challenges and uncertainty of COVID-19, SaskGaming made a considerable impact on programs and services in the province,” Minister Responsible for SaskGaming Christine Tell said. “The corporation endowed $20.1 million to the province’s General Revenue Fund to support the First Nations Trust, the Community Initiatives Fund and the Clarence Campeau Development Fund.”
A dividend of $13.3 million was declared for its shareholder (CIC) for the same 12-month period. According to the corporation, central to SaskGaming’s mandate is supporting the communities in which it operates. The community giving program provided upward of $384,000 to 71 organizations, community projects and events in 2019-2020.
“Elevating the guest experience was at the core of Casinos Regina and Moose Jaw’s efforts for 2019-20,” SaskGaming President and CEO Susan Flett said. “This was accomplished through modernization and reinvestment in the casino properties, gaming technology and product upgrades.”
SaskPower reported a net income of $205 million for 2019-20, as they released their annual report on July 6th. This represents an $8 million increase in net income for the Crown electrical utility over 2018-19.
“Reliable, sustainable and cost-effective electricity is crucial to achieving the economic goals laid out in the Government of Saskatchewan’s Growth Plan and the emissions reductions targets outlined in Prairie Resilience, our made-in-Saskatchewan climate change strategy,” Minister Responsible for SaskPower Dustin Duncan said. “During the past year, SaskPower has continued demonstrating its leadership in powering homes and businesses province wide while laying the groundwork for a lower-carbon future.”
SaskPower invested about $696 million into the provincial electricity system in 2019, which included $374 million to repair and upgrade aging generation, transmission and distribution infrastructure, and $253 million on growth projects such as new generation facilities and expanded grid capacity. The Advanced Metering Infrastructure (AMI) project is just one strategic investment apart of the $69 million in funds. SaskPower President and CEO Mike Marsh also talked about their continued efforts to reduce carbon dioxide emissions 40 per cent from 2005 levels by 2030.
The Saskatchewan Auto Fund is the self-sustaining, compulsory auto insurance plan administered by SGI on behalf of the province.
“In 2019, there were historic lows in the number of deaths and injuries on Saskatchewan roads, and the number of people killed as a result of impaired driving deaths was 61 per cent lower than the average over the previous decade,” Minister Responsible for SGI Joe Hargrave said. “While the people of Saskatchewan deserve much of the credit, SGI’s work alongside partners in government, law enforcement, and community organizations has made a significant contribution toward changing driving habits and improving safety on our roads.”
Auto Fund highlights for 2019-2020 include:
- the lowest number of fatalities ever recorded on Saskatchewan roads;
- $889.3 million in claims;
- $962.7 million in gross premium written;
- $151.5 million in discounts to customers through the Safe Driver Recognition (SDR) and Business Recognition programs;
- $29.3 million net storm claims;
- harsher penalties for distracted driving legislation took effect.
SGI Canada sells property and casualty insurance in competitive markets across Canada, and the corporation remained financially stable in 2019-2020. As a result of this, continued excellence and profitable growth is allowing the company to achieve strategic goals ahead of their schedule.
Other highlights on the report included a $54.3 million dividend to the government, $1 billion in direct premiums written, and introducing technology to allow brokers to exchange data with us in real time using their broker management system to quote, submit and issue SGI CANADA policies.
In 2019-20, demand from SaskEnergy’s industrial transmission customers increased for the fifth straight year and contributed to the corporation’s highest-ever level of transportation and storage revenue. In addition, the record for customers’ daily natural gas consumption in the province was broken on three consecutive days, with a peak of 1.55 Petajoules on January 15, 2020.
SaskEnergy invested $330 million to expand natural gas storage and delivery capacity for customers throughout Saskatchewan as core operations remained a focus. SaskEnergy managed to decrease its commodity rate while still investing in system capacity, safety and reliability. This is resulting in the corporations lowest commodity rate in 20 years for its customers, and combined with its delivery rate to make SaskEnergy's total residential gas utility rate the third-lowest in Canada.
“SaskEnergy continues to deliver value to its customers and achieve strong results in safety and fiscal management,” Minister Responsible for SaskEnergy Bronwyn Eyre said. “The corporation has attracted 2,500 new distribution customers, and its overall customer base is expected to reach 400,000 in 2020-21. SaskEnergy is well-positioned to meet the province’s natural gas requirements, and its continued investment in infrastructure will help foster our province’s economic recovery.”
SaskEnergy declared a dividend of $24 million to the Saskatchewan Government, based on the income before unrealized market value adjustments. This coming after SaskEnergy recorded income before unrealized market value adjustments of $66 million in 2019-20.
One operational highlight for the year included the completion of a new 62-kilometre South Saskatoon transmission gas line project, which more than doubled natural gas capacity to the east side of the city, to meet the increased demand for natural gas in Saskatoon and surrounding areas.
The main things noted in SaskWaters annual report, which provides a summary of significant achievements, noted major progress in infrastructure projects and substantial customer growth. SaskWater generated total earnings of $8.5 million in 2019-20, outpacing earnings in previous years. The corporation paid a dividend of $4.17 million to the province.
“2020 was a strong year for this Crown corporation.” Minister Responsible for SaskWater Bronwyn Eyre said. “Its success is part of an overriding commitment, by our government and Crown corporations, to the people and businesses of Saskatchewan to foster economic growth and build strong communities.”
SaskWater projects this year included an important milestone with the commissioning of the new Melville Regional Water Supply System. A significant purchase agreement with the City of Meadow Lake for its water treatment plant and a 30 year water supply agreement, made Meadow the sixth city to be served by SaskWater when the corporation took over in January of this year.
These two projects represent a significant portion of the $24.4 million that SaskWater invested in capital projects in 2019-20. Other highlights of SaskWater's activities include delivering 44.6 billion litres of potable and non-potable water, and project-managing 38 initiatives in northern Saskatchewan on behalf of the Ministry of Government Relations and the Northern Municipal Trust Account.
Thu, Apr 25, 9:30 AM
