Released on May 20, 2009
The Government today accepted and endorsed the Saskatchewan Rate Review Panel's (SRRP) report and recommendations on SaskPower's application for a rate increase.
"The SRRP conducted a public review of SaskPower's application for an average 13 per cent electricity rate increase," Crown Corporations Minister Ken Cheveldayoff said. "The panel reported back that by reducing input costs and deferring expenses in some areas, the average increase recommended would be 8.5 per cent."
On June 1 residential customers will, on average, see their power bills increase by about $8 per month and farm customers will see an average increase of about $18 per month.
"The SRRP report contains a number of cost containment steps SaskPower needs to undertake as a result of the lower rate increase," Cheveldayoff said. "SaskPower will follow the recommendations including a two per cent budget reduction in their operations, maintenance and administration spending."
SaskPower will implement all the panel's recommendations with one exception. The panel recommended changing the amortization period for defined benefit pension plan expenses. This recommendation would have gone against accepted accounting principles and resulted in an audit qualification. Instead of making this change, the Minister has instructed SaskPower to reduce expenses an equivalent amount.
"The panel's extensive review of SaskPower's revenues and costs resulted in an 8.5 per cent increase. The government is satisfied the rate review process is working well on behalf of the people of Saskatchewan," Cheveldayoff said.
The panel's report is available at their website http://www.saskratereview.ca/index.php.
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For more information, contact:
Mike Woods
Crown Investments Corporation
Regina
Phone: 306-787-5889
Email: mwoods@cicorp.sk.ca
Cell: 306-539-9588