The Saskatchewan Rate Review Panel has formally greenlit SaskPower’s 3.9 per cent rate increase – noting the Crown is facing increasingly challenging financial pressures from a host of issues. In its report released on Friday, the review panel cited an expanding capital program, increasing operating costs, higher fuel and purchased power costs, declining export revenue, as well as uncertainty on future carbon obligations as the issues leading to financial strains. SaskPower had applied for a system-average rate increase of 3.9 per cent, which was implemented on Feb. 1 on an interim basis while the rate review panel completed its review. Following its review, the panel concluded that the interim rate increase should be approved by the provincial government. The increase adds about $5 per month to the bill of the average residential customer and about $11 per month to the average farm customer’s bill. According to the rate review panel’s report, SaskPower’s updated mid-application forecast for 2025-26 projected an operating loss of $187 million, compared to $147 million in the original application. “SaskPower’s debt ratio is also forecast to remain above its long-term target range, while its return on equity remains below its long-term target,” a media release read. In Friday’s update, the Saskatchewan Rate Review Panel said it is deferring its recommendation on the Feb. 1, 2027, increase until the Crown provides updated financial information later this year. However, the panel advised ratepayers to be prepared for the possibility that the increase could be about 1.5 to 2.5 percentage points more than the proposed 3.9 per cent. “The Panel recognizes the affordability pressures facing Saskatchewan households, farms and businesses,” Albert Johnston, chair of the panel, wrote in the report. “At the same time, SaskPower must have sufficient revenue and financial capacity to maintain a safe and reliable electricity system. We believe the 2026 increase should be confirmed, but the decision on the 2027 rate should be based on the most current financial information available.” In a statement, Minister of Crown Investments Corporation Jeremy Harrison acknowledged SaskPower’s financial pressures, while also emphasizing the importance of affordability for Saskatchewan households. “We will carefully review the report and ensure any future decisions strike the appropriate balance between maintaining a reliable electricity system and protecting ratepayers from unnecessary cost increases,” Harrison’s statement read. With files from David Prisciak
