Panel recommends SaskEnergy natural gas rate reduction
The Saskatchewan Rate Review Panel is recommending a decrease in the natural gas commodity rate SaskEnergy charges its customers, effective April 1, 2012.
The Panel’s recommendation is in line with SaskEnergy’s rate application submitted in February requesting a commodity rate decrease from $4.55/per gigajoule (17.25 cents per cubic metre) to $3.82/per gigajoule (14.53 cents per cubic metre).
The lowered rate reflects lower gas costs projected for the 12 months ahead, and clears any balance projected in SaskEnergy’s gas cost variance account at the end of March, 2012.
During the review process the Panel evaluated the application and supplementary information provided by SaskEnergy and public input, as well as analysis provided by the Panel’s technical consultants. SaskEnergy passes on the cost of gas to consumers without discount or mark-up.
“The Panel views the recommended rate change as reasonable,” said Panel Chair Kathy Weber, “and we agree with our technical consultants’ assessment that the rate is supported by SaskEnergy’s application.”
The Panel has submitted its report to the Minister responsible for the Crown Investment Corporation, and is making the report available to the public on the Panel’s website at www.saskratereview.ca.
The provincial cabinet will make the final decision on the rate application.
The complete report of the Panel’s review of the SaskEnergy rate application can be downloaded at www.saskratereview.ca.
