Panel recommends approval of 4% SaskPower rate increase

An April 1 four per cent rate increase from SaskPower has been recommended for approval from the Saskatchewan Rate Review Panel, a news release said.

The release said the recommendation comes after a review of SaskPower’s updated financial statements and material changes to its business operations as well as meetings with officials from the power company.

“The updated financial information forecasts that SaskPower’s projected net income of $33 million in 2022-23 and a return on equity (ROE) of 1.1 per cent is now forecast to result in a net income loss of $105 million (an overall decrease of $138 million),” a release said.

The latest review is part of SaskPower’s initial application for a four per cent rate increase effective Sept. 1, 2022, followed by a second four per cent increase on April 1, 2023.

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In a release, the panel said it recognizes the impact ratepayers will experience with it confirming the increase.

“Affordability issues are a concern, and while rate relief is always a goal or objective, this must be balanced against the financial needs of the corporation ensuring that Saskatchewan residents have a safe and reliable electricity service today and into the future,” a release said.

In 2023-24, net income is now forecasted to decrease from $109 million to $23 million, forecasted ROE decreased from 3.8 per cent to 0.8 per cent, according to the panel.

The panel’s recommendation letter to the minister responsible for the Crown can be found here.

The provincial government’s cabinet will have the final say whether or not to approve the rate increase.