SaskEnergy nets income of $111M, looks to spend $225M on capital

The head of SaskEnergy says the utility needs to spend about $225 million a year on capital projects that include moving facilities on the outskirts of Regina and Saskatoon.

SaskEnergy president and CEO Doug Kelln says about $100 million of that is needed to maintain infrastructure, while some will be spent relocating stations as Regina and Saskatoon expand.

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SaskEnergy’s annual financial report shows net income of $111 million for the fiscal year that ended in March.

The report also notes that more than $5 million was spent on remediation efforts in communities with slope movement.

An explosion destroyed one home and seriously damaged several others in Regina Beach in December 2014 after flooding caused the ground to shift and led to a natural gas leak.

READ MORE: Lawsuit filed in Regina Beach natural gas explosion

SaskEnergy has applied to lower what it charges customers for natural gas to $3.65 a gigajoule from $4.30 – which would be the lowest commodity rate in 16 years.