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SaskPower seeks rate increases of 4% in both 2022 and 2023

Residential customers would see an average increase of $5 a month on Sept. 1 and then again on April 1, 2023, if SaskPower gets approval to hike its rates. File / Global News

SaskPower says it needs to hike its rates to maintain a reliable and sustainable electricity system.

The Crown corporation has applied to the Saskatchewan Rate Review Panel for rate increases of four per cent in both 2022 and 2023.

If approved, residential customers would see an average increase of $5 a month on Sept. 1 and then again on April 1, 2023.

“SaskPower is committed to providing stable and reliable power to our customers at an affordable rate, and we’ve worked hard to avoid rate increases in recent years,” said Troy King, interim president and CEO of SaskPower, in a statement Friday.

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“Today, SaskPower requires additional funding to increase renewable generation, modernize the power system and ensure a sustainable future for us all.”

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SaskPower has not raised its rates since 2018.

In December, SaskPower said it was not passing on the Jan. 1 federal carbon price increase to its customers.

The federal carbon price increased from $40 to $50 per tonne.

SaskPower is also asking the panel to approve a change to its rate design methodology, which will only affect customers who pay separate demand and energy charges.

The company said it will be revenue-neutral and not affect residential customers or the majority of farms and small commercial businesses.

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