The notion of consistently building shareholder value is often associated exclusively with publicly-traded companies. But when it comes to SaskPower — a Crown-owned utility — we believe the concept is equally applicable. In fact, it may be even more important because our ultimate shareholders — the people of Saskatchewan — are also our customers.
As a result, our definition of performance not only includes meeting financial targets, but also consistently high standards of service. Effectively filling this unique and complex role makes it all the more important and challenging to clearly articulate where we are taking our company.
During 2006, the Board of Directors joined the Executive and employee groups in completing a review and revision of SaskPower’s strategic direction. At its core is a new vision that serves to remind us of the ideals we are pursuing and what we want to achieve in the years to come: “People and innovation . . . powering Saskatchewan to a bright future.”
This statement of purpose provides a necessary and constant reminder that the formula for our success begins and ends with people. Our employees and partners will lead the way through the unique expertise and determination they bring to SaskPower. Their resulting efforts will be critical as we navigate upward pressures on costs associated with an extensive reinvestment in our electrical system, evolving environmental regulations and an extremely competitive marketplace for recruiting and retaining skilled professionals. We are continuing to work hard as a utility to manage resources prudently and employ effective risk management. However, the reality remains that rates must reflect the costs associated with an extensive and necessary program of system infrastructure renewal. A strong financial performance is essential to sustaining our company.
In particular, we continually strive to balance a range of financial expectations, including return on equity, debt ratio and shareholder dividend ratio targets. In the face of these challenges, we recognize our company remains central to supporting economic development and growth.We are also aware of the continuing need to provide a foundation for our basic quality of life in Saskatchewan. Therefore, we will endeavour to introduce rate increases in a predictable and moderate way.We will ensure that all customers — residential, business, agricultural and industrial — share in a fair rate structure that supports the maintenance of one of the strongest balance sheets of any government-run utility in the country.
I am pleased to note that our continuous progress is aided by a strong alignment between the Board of Directors and management of SaskPower. This exists in no small part due to the extensive work done by colleagues at the Board committee level throughout the year. Of course, I would also like to extend my special thanks to employees for their invaluable contributions and faith as we travel along our common strategic course.
