REGINA – The province-wide smart meter debacle didn’t stop Saskatchewan’s Crown electrical utility from taking home $16 million more in operating income than expected in 2014.
Overall, the $43 million before market adjustments is still 116 per cent less than 2013, meaning SaskPower won’t pay a dividend to the government.
In its annual report tabled in the legislature Tuesday, SaskPower said increased costs for fuel and purchased power were partially to blame for the reduction in profit.
The utility was plagued by problems in 2014 with its new automated metering technology, or smart meters, when ten fires were caused by faulty units from the manufacturer, Sensus.
More than 100,000 smart meters were ordered to be removed from Saskatchewan homes; an investigation later revealed SaskPower moved ahead with the project too quickly and didn’t make safety enough of a priority.
“You could probably say it was a difficult challenge.”
Despite those issues, the minister responsible for SaskPower believes customers still have a “high level of confidence” in the utility.
“You could probably say it was a difficult challenge for SaskPower … but overall, we were fortunate there was no loss of life or significant loss of property,” Bill Boyd said Tuesday. “As a result of that, I think most people would still view SaskPower as a good electrical supplier.”
READ MORE: Comprehensive timeline of the SaskPower smart meter saga
A partial refund was negotiated with Sensus, but SaskPower is still contractually obligated to purchase a newly designed meter in the next couple years from the same manufacturer if it can meet independent standards.
SaskPower highlighted 2014 investments including $409 million to upgrade power stations, continued work on the $380-million I1K transmission line and $583 million on connecting new customers as well as upgrades to transmission and distribution systems.
The utility is also celebrating the launch of the Boundary Dam carbon capture and storage project in Estevan.
New sources of power
Critics have repeatedly pushed for SaskPower to shift further to renewable energy sources, such as wind farms, which currently make up less than 10 per cent of the province’s power generation.
The minister responsible suggested wind energy can actually be more costly because of the necessity to have a base load of power available when the wind isn’t blowing.
“We want to try and keep a handle on the rates customers pay in Saskatchewan,” Boyd said. “To move more aggressively into those other areas would mean higher rates.”
Boyd also said renewables make up about 25 per cent of SaskPower’s overall generation.
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