Released on June 26, 2012
The Government of Saskatchewan today accepted SaskEnergy's request for a Delivery Service Rate increase of $2.25 to the company's basic monthly charge for residential customers.
When combined with the lower commodity rate introduced earlier this year, annual residential bills will be lowered by almost $50 in 2012 or 5.6 per cent. In February of this year, SaskEnergy applied to the Saskatchewan Rate Review Panel (SRRP) for adjustments to commodity and delivery service rates. The SRRP recommended that changes to both rates were warranted and a lowered commodity rate was implemented April 1, 2012.
The delivery rate increase will directly support safety and system investment across the province for SaskEnergy. The Government of Saskatchewan accepted the SRRP's proposed delivery service rate changes to accommodate the costs of growth and maintaining a safe distribution system, and to continue to address challenging soil conditions and aging infrastructure.
"SaskEnergy's new delivery charges support continued customer growth, as well as investments in safety programs important to providing safe and reliable natural gas services," Minister responsible for SaskEnergy Tim McMillan said. "Even with this change, SaskEnergy's residential customers are paying the lowest delivery charges of any natural gas consumer in Canada."
As noted by the rate review panel, SaskEnergy has mitigated the impact of delivery increases to customers by reducing its own costs through productivity improvements and efficiency measures. SaskEnergy has saved more than $22 million through efficiency measures since 2009.
This is SaskEnergy's first delivery service rate increase in nearly three years, with 15,000 service connections installed for new residential, business and industrial customer connections during that period.
The changes to the basic monthly charge will be effective July 1, 2012.
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For more information, contact:
Kathy Young
Executive Council
Regina
Phone: 787-0425
Email: kathy.young@gov.sk.ca