SaskPower rate increase to renew aging infrastructure

SaskPower rate increases propose 5.5% in 2014, then 5.0% in 2015 and 2016, affecting Saskatchewan electricity rates and utility bills, tied to infrastructure investment, multi-year planning, and energy efficiency and conservation programs.

SaskPower has submitted a multi-year application to the Saskatchewan Rate Review Panel to fund ongoing major investments in the province’s electrical system and keep pace with the growing economy and population base.

SaskPower is requesting the following system average rate increases in 2014, while Manitoba Hydro scaled back plans next year: a 5.5 per cent rate increase in 2014 a 5.0 per cent increase in 2015 and a 5.0 per cent increase in 2016.

Saskatchewan residential customers will, on average, see their bills increase by $5, $4 and $4 per month in 2014, 2015 and 2016 respectively, if the rate application is approved, a decision that drew NDP criticism at the time.

“The type of growth Saskatchewan has experienced in recent years isn’t a blip on the radar it’s the new reality for our province,” said SaskPower President and CEO Robert Watson. “In order to keep up with that trend, and consistent with the provincial energy cost plan guidance, sustained major investments into the electrical system are a necessity to maintain safe and reliable service.”

Watson noted that a multi-year application allows customers to budget household expenses in advance, and helps commercial and industrial customers with business planning over the next three years.

“SaskPower continues to set new annual records for customer connects and the total amount of power needed by customers at one time,” said Watson. “To that end, we plan to spend $1 billion per year for the long term on renewing and improving the province’s electricity system, even as NS Power rate hike preparations proceed elsewhere.”

To help offset the impact of rate increases, and amid a 10% rebate pledge by the province, SaskPower will continue to help customers reduce their electrical use through efficiency and conservation programs, including the popular Refrigerator Recycling Program, and various lighting discounts and offers.

SaskPower will continue to find ways to operate its business more efficiently by reducing costs where possible. Through its Business Renewal program, SaskPower has already saved $137M at the end of 2012. Examples include:

- $63 M: the amount saved to Dec. 31, 2012, through changes to borrowing practices to reduce interest rates

- $36 M: the amount saved to Dec. 31, 2012, in new customer connect process improvements and productivity gains and

- $12 M: the amount saved to Dec. 31, 2012, through improvements to information technology practices, such as reducing the number of printers in offices, and automating testing tools for software upgrades.

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