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SASKENERGY RATE DECREASE APPROVED

Released on November 4, 2009

The government today approved a 12.6 per cent decrease to SaskEnergy's natural gas commodity rate, resulting in the lowest natural gas rate in nine years. SaskEnergy's residential customers will now see an average 7.8 per cent decrease on their actual bill effective November 1.

"We are pleased to pass this savings on to SaskEnergy's customers," Minister responsible for SaskEnergy Ken Cheveldayoff said. "The Saskatchewan Rate Review Panel (SRRP) conducted a public review of SaskEnergy's application for a commodity rate decrease to $5.21/Gigajoule (GJ), and approved their recommendations. Natural gas rates are a direct pass-through, as SaskEnergy only collects from customers what it pays to suppliers for natural gas on the open market."

Gas bills for residential customers will decrease on average by about $6.75 per month or $81 annually. All customer classes will benefit from the new commodity rate, but the impact on customer bills will vary as bills include two other components - a basic monthly charge and delivery charge, which differ based on customer class.

In September, SaskEnergy applied to the SRRP for a commodity rate decrease to $5.21/GJ from its current rate of $5.96/GJ, based on its projected natural gas costs over the next 12 months. The SRRP publicly reviewed the proposal and then recommended the decrease to the Government of Saskatchewan.

SaskEnergy currently has an application in for review with the SRRP to increase the delivery charge for natural gas. The SRRP will make a recommendation in January.

"SaskEnergy continues to offer stable rates, using a 12-month forward pricing outlook, as recommended by the Rate Review Panel to protect customers from the continued volatility we see in the natural gas markets," Cheveldayoff said. "This strategy has helped the Corporation to provide natural gas rates among the lowest in Canada."

The Panel's report is available at their website http://www.saskratereview.ca/index.php.

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For more information, contact:

Andrew Dinsmore
Executive Council
Regina
Phone: 306-787-9619
Email: andrew.dinsmore@gov.sk.ca

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