SaskWater report shows Crown's heavy reliance on potash industry
Corporation could increase cost of service if potash prices continue to drop
SaskWater's 2016-17 annual report, released Monday, highlights the significant role potash plays when it comes to the Crown corporation's distribution numbers.
"Certainly the potash sector is by far and away our largest customer in terms of volumes. They take about 75 per cent of all the water we deliver and most of that is untreated water," said Doug Matthies, CEO of SaskWater.
-
Sask. government's credit rating downgraded by Standard and Poor's
-
Potash Corp., Agrium to be called Nutrien once merger closes
SaskWater delivered 35.8 billion litres of non-potable water in 2016-17. The potash industry accounted for 26.85 billion of those litres, which would fill 71,600 Olympic-sized swimming pools.
The report says "overall consumption volumes for non-potable customers decreased in 2016-17 largely in response to global potash market conditions."
Matthies said SaskWater may look at raising the cost of water in the future if potash continues to drop; however, he said in his observation "the cycles are reasonably short" and don't affect the interest of investors.
Plus, SaskWater has a minimum charge built-in to some non-potable and potable water contracts, which can help in circumstances where earnings decrease.
The report says new customers are an additional offset to lowered consumption numbers.
So, revenues were unaffected, sitting at $53 million. That's about $5 million more than the previous fiscal year.
A total of 42.9 billion litres of drinking water and non-potable water were distributed across Saskatchewan this year.
- MORE SASKATCHEWAN NEWS | 2 face wildlife charges after bird killed at Craven Country Thunder festival
- MORE SASKATCHEWAN NEWS | Large hail pummels Sask. fields