The electrical power costs for Saskatchewan consumers will be a little less in 2017 than what was anticipated earlier.
The multi-year rate application filed by SaskPower has been adjusted and reduced slightly as a result.
The five per cent increase effective in July of this year, has been approved and will not affect current billing since it had already been included in the current billing on an interim basis.
The Jan. 1, 2017 increase will be reduced to 3.5 per cent from the five per cent that was originally sought by SaskPower.
The provincial cabinet agreed with the decision and recommendation forwarded to them by the Saskatchewan Rate Review Panel.
Gordon Wyant, the minister responsible for SaskPower acknowledged the Crown corporation has several future challenges on the capital expenditure side as well as maintaining the electric power system, meeting the growing demands while moving toward more renewable power generation.
In the near future, SaskPower will be investing in a number of areas which will include power generation and distribution infrastructure.
Within the next short time span, the company will need to increase the Pasqua to Swift Current transmission system at a cost of $260 million while a Kennedy to Tantallon transmission line upgrade will require a further $113 million.
The Chinook Power Station scheduled to be built near Swift Current which will add more power capabilities from a natural gas-fired plant, will come with a cost of about $680 million.
The company noted that customer connections next year will require about $509 million and the life extension program for the E.B. Campbell hydroelectric station near Nipawin will require about $245 in capital expenditures and wood pole remediation around the province, comes with a price tag of $498 million.
“We understand the economy is in a challenging state right now and we are committed to providing safe, reliable power to our customers in as cost-effective manner as possible,” said SaskPower president and CEO, Mike Marsh. “The approved rate increases provide us with the necessary financial certainty to make sure we have the power our customers need when they need it.”
The rate increase that went into effect in July of this year, added about $6 per month for the typical residential SaskPower customer. The 3.5 per cent increase coming next month will mean an additional $4 per month for the average residential electrical power consumer.
