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SASKENERGY TO FILE REVISED COMMODITY RATE APPLICATION

Released on October 11, 2005

SaskEnergy will revise its commodity rate request that is currently before the Saskatchewan Rate Review Panel, in light of significantly increased market prices for natural gas.

The revised proposal will ask for a commodity rate of $10.88 per GigaJoule (GJ), effective Nov. 1st, 2005. That rate represents a system wide average bill increase of 41 per cent, or about $475 per year for the average residential customer, given normal weather conditions.

"Since SaskEnergy filed its original rate application, the natural gas market has felt the full effect of two category five hurricanes, Katrina and Rita, which have severely disrupted production in the North American natural gas market," Crown Management Board Minister Pat Atkinson said. "SaskEnergy has to ask for a higher rate increase to reflect the cost it pays for gas, which it passes on to customers at no mark-up or profit."

"The Government is already committed to providing Saskatchewan citizens with the lowest cost bundle of basic utility rates in Canada," Atkinson said. "We are working on additional programs in both the conservation and rate assistance areas. We will announce these programs after we have received recommendations from the Saskatchewan Rate Review Panel."

The Saskatchewan Rate Review Panel has been informed about SaskEnergy's revised rate application. The Panel will continue its review with the revised number, and will report its recommendations to Government on Oct. 24th.

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For More Information, Contact:

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

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