SASKWATER ANNOUNCES RATE INCREASES

SaskWater will increase its rates to certain customers beginning August 1st, 2004. The customers affected are those who buy treated or untreated water from SaskWater and whose agreements do not include a clause providing automatic rate increases. In most cases, the increase will make these customers' rates more comparable to rates paid by other SaskWater customers.

In total, rates will increase for 24 municipal customers, 30 industrial customers and 288 "domestic" customers (including pipeline associations, water co-operatives and rural households). These customers represent two-thirds of SaskWater's customers and about 1.6 per cent of the provincial population.

The increases will be phased in over two years. Effective August 1st, 2004 most rates for treated water will increase from about $4.55 per sales unit (1000 gallons) to $5.74, and on April 1st, 2005 to a minimum of $7.00 per sales unit. Untreated water rates will also increase on the same dates, from $1.95 to $2.15 per sales unit, and then to a minimum of $2.32 per sales unit.

"SaskWater is committed to providing good quality water at competitive prices in rural Saskatchewan and in small urban communities," Minister responsible for SaskWater Peter Prebble said. "This rate increase is necessary to reflect the actual cost of supplying high quality drinking water and meeting today's improved water safety standards. It will also allow SaskWater to make essential investments in water treatment technology and infrastructure that will better serve Saskatchewan people."

SaskWater is in the process of contacting all customers affected by the rate increases. Customers not affected by the rate increase are those whose contracts include automatic rate adjustments and those with negotiated prices higher than the new rates.

SaskWater's last rate increase was in August 2001, for an average of 4.3 per cent.

SaskWater is the province's Crown water utility and a Total Quality Water Management company. The corporation provides competitively-priced, customer-focused water and wastewater services to Saskatchewan industries, municipalities and rural water groups.

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For More Information, Contact:

Felechia Brodie SaskWater Moose Jaw Phone: (306) 694-3940