SaskEnergy says it's not asking for rate increase in 2020

The minister in charge of Saskatchewan's Crown natural gas utility says it is not looking at a rate increase this year.

"SaskEnergy's total residential gas rate is the third lowest in Canada and no rate change is occurring in 2020," the minister responsible for SaskEnergy,Bronwyn Eyre,told reporters duringthe release of this year's SaskEnergy annual report.

"That assists customers to manage their energy dollars during these unprecedented times."

Eyre said demand from industrial customers increased for the fifth year in a row.

As well, the Crown corporation broke its previous daily natural gas consumption record on three consecutive days in January.

According to its annual report, SaskEnergy brought in $66 million in income in 2019-20. While that number is considerably lower than the previous year, where the Crown corporation made $134 million, Eyre said she remains confident in the corporation's fundamentals.

"In 2018-19, it was an extremely unique year," she said. "As you'll recall, it was a bitterly cold winter. There was also a surge in industrial demand that year."

Looking forward, SaskEnergy doesn't predict a dip in usage connected to COVID-19.

President Ken From said demand for natural gas is seasonal and largely weather dependent, although it's difficult to predict what the long-term need will be for industrial users.

"I think we're quite stable," he said. "It's the years down the road that we have to turn our attention to and discuss with customers what their needs really are."

In 2019-20, the crown corporation spent $330 million to expand its natural gas storage and delivery system.

The corporation also completed a new 62-kilometre gas line project in Saskatoon, which more than doubled natural gas capacity to the east side of the city.

It also gave nearly $1 million in rebates to residential and commercial customers who installed energy efficient natural gas furnaces and heating systems.