SaskEnergy has applied for a 2.3 per cent delivery service rate increase.

The Crown-owned utility says the increase will support continued elevated capital spending on system safety and customer growth initiatives, totalling more than $50 million in 2017-18.

If the Saskatchewan Rate Review Panel approves the proposed hike, a typical residential customer would see an increase of $1.65 a month, effective Nov. 1.

With stable natural gas prices currently forecast for next winter, the commodity rate would remain unchanged at $3.65 per gigajoule.

“As a focus on pipeline safety we continually upgrade existing infrastructure, while investing in the tools and technologies which form part of our system integrity program,” SaskEnergy president and CEO Ken From said in a news release Tuesday.

“This coming year we have major projects planned to expand and move pipeline infrastructure away from the development occurring in both Saskatoon and Regina.”

Despite the proposed rate hike, SaskEnergy says its residential delivery charges will remain among the lowest in the country, and the lowest in Western Canada.

SaskEnergy last adjusted its delivery service rate a year ago. The company implemented an 8.6 per cent increase, while also lowering its commodity rate by 14 per cent, resulting in an overall decrease for residential customers of $1.70/month.

SaskEnergy has added more than 54,000 new residential, business and industrial customers since 2008. Another 4,500 new customers are expected this year.

Additional information on the rate review process, including a full copy of SaskEnergy’s rate increase application, will be available at