Panel Recommends Increase in SaskEnergy Basic Monthly Charge
The Saskatchewan Rate Review Panel is recommending an average 6.7% increase in the delivery rates that SaskEnergy charges its customers, through an increase in the Basic Monthly Charge. The recommended increase would take effect July 1, 2012.
The Basic Monthly Charge is one component of SaskEnergy’s delivery service, allowing it to recoup its fixed monthly charges. The other component is the Delivery Charge, which is based on the volumes of gas consumed, and is not affected by this recommendation.
Panel Chair Kathy Weber noted that while the Panel is satisfied that the recommendation preserves the public interest, the Panel encourages SaskEnergy in the future to develop a strategy to move the Basic Monthly Charge to a consistent percentage level for all customer classes. The Panel also agreed with
a request from SaskEnergy to move the implementation date for the recommended increase to July 1, 2012, from the original proposed date of September 1, 2012, to allow SaskEnergy staff to implement a new Customer Information System on September 1.
Since this recommended increase is only to the Basic Monthly Charge, the average overall impact for SaskEnergy customers, based on rates in effect on March 31, 2012, will be an increase of 2.6%. However, when combined with the decrease in the price of natural gas that took effect on April 1,
2012, SaskEnergy customers will see their overall rates decrease by an average of 9.2%. SaskEnergy’s customers will experience an overall rate that is the third lowest when compared to eight utilities in major cities across Canada.
Panel Chair Kathy Weber said the Panel is pleased that SaskEnergy has demonstrated its commitment to controlling costs and improving its service levels in every aspect of its business.
“SaskEnergy has minimized rate increases through 33 productivity improvements,” Weber said, “and has diligently maintained its full-time equivalent staff at 2008 levels despite an increasing workload that includes adding 15,000 net new customers since 2010, and more than doubling annual capital investment in new connects from a decade ago.
The complete report of the Panel’s review of the SaskEnergy delivery rate application can be downloaded at www.saskratereview.ca.
