Government has approved a system-wide average rate increase of 4.3 per cent for SaskPower customers, effective February 1, 2007. The increase was recommended by the Sask-atchewan Rate Review Panel in its report to government on January 11.

“We agree with the Panel’s recommendations and we will direct SaskPower to implement the rate increase on February 1,” Crown Investments Corporation Minister Maynard Sonntag said. “With the rate increase, the average urban residential customer will pay about $3 more per month for electricity, while the monthly increase for farm customers will be about $6. No individual customer within a class will have an increase of more than 15 per cent.”

SaskPower had requested the increase to keep revenue in line with the actual cost of providing electrical service. As well, the corporation is moving forward with plans to rebuild and replace aging equipment that is nearing the end of its planned life.

“That will be a significant cost to SaskPower over the next several years,” Sonntag said. “It’s important to plan for that now, so the corporation can keep the cost to customers as low as possible.”

The Panel made two other recommendations, which Government has also approved. An independent consultant will lead an external review of SaskPower’s cost of service methodology during 2007. As well, Government will direct SaskPower to continue to educate and inform the public about electrical generation supply and conservation issues and options.