An application by SaskEnergy to reduce its commodity rate could translates into $81 in yearly in savings for Saskatchewan households.
The Crown corporation applied to the Saskatchewan Rate Review panel on Friday to lower the commodity rate on natural gas from $3.65 a gigajoule (GJ) to $2.65/GJ, effective April 1, 2019.
If approved, it would be the lowest rate offered by SaskEnergy since 1999.
“Natural gas is the choice of energy for our nearly 400,000 customers and we’re pleased to be able to offer near record low commodity rates,” said Ken From, president and CEO of SaskEnergy, in a press release.
“These low market prices speak to the efficiency of the natural gas industry and the abundance of this low-emissions fuel resource in Canada.”
SaskEnergy also wants the panel to support an interim rate decrease to $2.95/G as of Nov. 1.
From said the interim rate decrease would allow households to take advantage of lower natural gas prices during the upcoming winter heating season while allowing the panel the necessary time to review the application.
SaskEnergy is also asking for a 3.7 per cent delivery rate increase to offset higher safety and system integrity costs, and for infrastructure investments.
The adjustments would reduce the average bill for a residential customer by 8.8 per cent.
The amount of natural gas used by an average home in Saskatchewan has been reduced by 30 GJs yearly to 100 GJs due in part to more energy-efficient furnaces and water heaters, homes built to higher efficiency standards, and better energy management.
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