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GOVERNMENT APPROVES SASKPOWER RATE INCREASE

Released on December 7, 2005

Government has approved a system-wide average rate increase of 4.9 per cent for SaskPower customers, effective January 1st, 2006. The increase was recommended by the Saskatchewan Rate Review Panel in its report to government on November 14th.

"We agree with the Panel's recommendation and we will direct SaskPower to implement the rate increase on January 1st," Crown Management Board Minister Pat Atkinson said. "With the rate increase, the average urban residential customer will pay about $4 more per month for electricity, while the monthly increase for farms will be about $3."

SaskPower's original rate application had asked that the increase take effect October 1st, 2005. However, heavy rainfall significantly improved hydro conditions, resulting in improved revenues. As a result, the corporation felt it could meet its financial targets for 2005 without a rate increase.

"Crown corporations look at other alternatives before asking for a rate increase," Atkinson said. "SaskPower cannot expect the extraordinary hydro conditions it experienced this year to occur again in 2006, so it needs this rate increase to keep revenues in line with the actual cost of providing service."

Besides the recommendation on the rate increase, the Panel made a number of other recommendations regarding procedural matters for future rate applications by SaskPower.

"CIC will work with SaskPower and the Panel to ensure that the Panel receives the detailed information it has requested," Atkinson said. "That includes cost of service data for each customer class, rate design and rebalancing information, as well as information on long-term capital planning and initiatives to reduce the need for rate increases.

"We want to thank the Panel for its work on this rate review. We also want to thank the many individuals and businesses who shared their views with the Panel through public meetings, emails, letters and phone calls."

PLEASE NOTE: Minister Atkinson will be available for a scrum with media on Wednesday, Dec. 7th at 10:30 a.m. in the rotunda, Legislative Building, Regina.

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For More Information, Contact:

Karen Schmidt
CIC
Regina
Phone: (306) 787-5889

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