SaskPower planning for future

The electricity needs of Saskatchewan are growing.

At the same time much of SaskPower's infrastructure is aged.

The combination of factors moving forward will mean a need for a major capital investment, said Tom Kindred, vice-president & chief information officer with the Saskatchewan Crown Corporation.

Kindred, who was in Yorkton Thursday meeting with municipal and business leaders said in terms of power use, the industrial sector alone is growing dramatically.

"Industrial use is going to double in the next nine years," he said, adding the sector is already the largest user of electricity.

As industry grows, it needs to know electricity will be there long term, said Kindred, pointing to a development such as a potash mining, noting "They have to have sustainable, reliable power."

"They're developing 40-year plans to get the stuff out of the ground," he added, so it necessitates SaskPower having a long-term plan to provide service.

Kindred said the corporation has a 40-year supply plan, which looks at supply from the short term, out to 2010, and then beyond.

In the short term SaskPower has two major thrusts taking place.

On one hand the corporation is looking to trim $2 billion for operations over the next nine years, said Kindred.

And, SaskPower will invest $15 billion in capital projects, including new power generation capacity, and replacement of elements of the existing transmission sector.

On the generation side Kindred said SaskPower is looking at a multifaceted approach, including coal and natural gas, water generation, along with evolving options including wind and cogeneration.

In terms of the transmission system, Kindred said simply that it is old.

"The challenge is a lot of infrastructure is 45-years, and older," he said, adding it needs replacing.

As an example a power pole might have a life expectancy of 50/60-years, but that means many are nearing the upper limit of their usefulness.

"We have more power poles than we have people in Saskatchewan," said Kindred.

The need to invest billions moving forward will mean one thing for all consumers, whether industrial, commercial or residential.

"The rates will be going up over the next few years," said Kindred, adding the last increase was in 2010.

While residential and commercial rates may rise at different times, "the fact is all rates are going to be going up," he said, adding it is simple business, if you replace electricity costing six cents to generate a kilowatt today, with new generation costing 18 cents, the costs have to be recouped through rates.