RATE REVIEW PANEL REPORT ACCEPTED

After reviewing the recommendations of the Saskatchewan Rate Review Panel (SRRP), the Government of Saskatchewan has advised SaskPower to proceed with a 4.5 per cent system average rate increase, effective August 1, 2010.

Saskatchewan residents will, on average, see their power bills increase between $5-10 per month.

In February, SaskPower asked for an average increase of seven per cent primarily due to rising fuel prices and significant capital investments needed to maintain and upgrade the province's electrical infrastructure.

"SaskPower has been proactive in bringing forward revised financial forecasts to the Panel since the initial application and it also found ways to cut costs," Minister responsible for SaskPower Rob Norris said. "This includes a two per cent reduction in the corporation's operations, maintenance and administration spending in 2010. This, along with the lower market price of natural gas and greater hydro-electric capacity from spring rains, resulted in the recommendation of 4.5 per cent."

SaskPower has established an efficiency and effectiveness program aimed at identifying ways to reduce internal costs, while still emphasizing customer service and occupational health and safety. A primary operational goal is to find and remove, or avoid, $2 billion in costs over the next 10 years. SaskPower will also continue to help customers manage their power bills through its energy efficiency and conservation programs.

Going forward, the government will ensure SaskPower does its best to propose regular, moderate rate increases - a task that will be increasingly challenging given the ongoing capital investments that SaskPower needs to make in order to renew and expand its aging electrical infrastructure.

"We are committed to ensuring SaskPower's rates remain affordable, especially when compared to other thermal-based utilities," Norris said. "On average, SaskPower's system-wide rates are approximately 20 per cent lower than those of other thermal-generation based utilities across Canada. That said, we also have to address our infrastructure deficit, meet increasing customer demands and move forward with green technologies."

The Panel's report is available on their website www.saskratereview.ca.

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For more information, contact:

Rebecca Rogoschewsky
Media Services
Regina
Phone: 306-787-0980