SaskPower says it had an operational income of $46 million in 2016-17, compared to $64 million the previous period.
In an annual report tabled on Wednesday, the Crown corporation said the decrease in earnings was primarily due to higher expenses offset by an increase in revenue.
Total SaskPower revenue was $2.4 billion, up $98 million from 2015-16.
Electricity sales in Saskatchewan were up $145 million as a result of a system-wide average rate increase of five per cent on July 1, 2016, and 3.5 per cent increase on Jan. 1, 2017.
Saskatchewan electricity sales volumes to customers were 22,080 gigawatt hours, up two per cent compared to the year prior.
Total expenses were $2.35 billion, up $116 million from 2015-16. SaskPower said this was mainly due to capital-related expenses, which increased $69 million in 2016-17.
The report said SaskPower invested $886 million in capital over the past year as it continues to meet the challenge of sustaining an aging power grid, while meeting growing demands and environmental commitments.
“Moving forward, we will continue to invest in the health of our electricity system,” SaskPower president and CEO Mike Marsh said in a press release.
“We will continue to find ways to work more efficiently and effectively so we can fulfill our mission of ensuring reliable, sustainable and cost-effective power for our customers and the communities we serve.”
Over the past two years, SaskPower said it has saved $73 million in budgeted operating, maintenance and administration spending.
According to the report, the net impact of SaskPower’s operating results plus unrealized market value gains was consolidated income of $56 million for the 12 months ended on March 31, 2017, compared to a $19 million net loss for 2015-16.