SaskPower rate hike too high, says review panel
Power supplier has applied for two rate hikes in six months
The Saskatchewan Rate Review Panel says the second of two rate increases requested by SaskPower is too high.
It urged the government Tuesday to deny SaskPower's request for its second five-per-cent rate increase in six months.
Instead, it is recommending a lower rate of 3.5 per cent to kick in on Jan. 1.
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SaskPower's earlier application for a rate increase, effective July 1, 2016, has the backing of the panel. That hike was authorized by the government on an interim basis earlier this year.
The panel said in a news release that it recommended lowering the second rate to soften the blow of two increases in six months.
"The public and particularly industrial users expressed great concern about being able to adjust to these two increases over such a short time period," the release said.
"The panel recognizes this recommendation will financially impact SaskPower and, as such, it will need to find areas where they can reduce expenses or enhance other revenue sources to accommodate this smaller rate increase."
It is up to provincial cabinet to decide if the rate increases should go ahead and at what rate.
If the panel's recommendations are approved, the July 1 increase would raise the average residential customer's monthly bill by $5.05. It would then rise a further $3.71 on Jan. 1.
The review panel also recommended the government encourage SaskPower to undertake a comprehensive public and stakeholder engagement process for its integrated resource supply plan.