After a thorough review, the provincial government has accepted the recommendation for a three-and-a-half per cent rate increase for SaskPower, compared to the original request of five per cent.
As planned, the increase will come into effect March 1. This represents an increase of approximately $4 on monthly residential power bills.
“Every year, SaskPower is keeping up with new records of power consumption, while working to keep power rates as low as possible,” said Dustin Duncan, the minister responsible for SaskPower. “They face an important challenge to maintain and grow our power grid.
“With their revised fiscal forecasts during the rate review period, government agrees with the Rate Review Panel that SaskPower can meet this challenge in 2018 with a lower increase. We will continue to challenge SaskPower, and all government agencies, to do more with less, and without compromising service to Saskatchewan homes and businesses.”
In its rate application, SaskPower outlined the investment of the rate increase in major maintenance and growth projects to reduce the number and duration of power outages; modernize the power grid; meet the growing demand for more power; and help SaskPower reduce its greenhouse gas emissions by 40 per cent from 2005 levels, by 2030.
“It’s a balancing act that we take very seriously,” SaskPower president and CEO Mike Marsh said. “Electricity is vital in all our lives and for our economy. The power has to be on when and where we need it.
“SaskPower also has to be financially responsible with its operations. That’s why we’ve optimized our processes, reduced administrative costs and we plan to reduce this spending by an additional $142 million in the next three years using various restraint measures. This 3.5 per cent will allow us to continue investing in the grid and we will investigate additional ways to save money to compensate for this lower-than-planned increase.”
