News

The Saskatchewan Rate Review Panel (the Panel) has completed its review of SaskEnergy’s proposed 2023 commodity rate application and its delivery rate financial update. This review is a continuation of the Panel’s process that was initiated on July 11, 2022, when SaskEnergy submitted an application to increase its commodity rate by 31.0% and to increase its delivery service rate by an average of 8.0% in 2022-23 (Year 1), 5.0% in 2023-24 (Year 2), and 2024-25 (Year 3). The Year 1 rates were implemented on August 1, 2022.

Given that the quarterly results filed during the initial process provided a significant improvement in SaskEnergy’s financial results for 2022-23, the Panel recommended at that time that the proposed delivery rate increases for Years 2 and 3 could not be considered until updated financial forecasts were provided in early 2023. The Panel also recommended that SaskEnergy file an application to reduce the commodity rate as soon as the Gas Cost Variance Account (GCVA) balance of $28 million was discharged.

SaskEnergy filed its delivery service financial update and commodity rate application on June 29, 2023. SaskEnergy is now proposing a 5.0% delivery rate increase effective October 1, 2023. SaskEnergy is also applying to decrease its commodity rate from $4.20 gigajoules (GJ) to $3.30 GJ effective October 1. 2023, in order to discharge the GCVA by December 31, 2025. No further adjustment to its commodity rate or delivery rate is proposed in 2024 or 2025.

After this most recent review, the Panel is now recommending to the Minister:

1. That the commodity rate be reduced from $4.20/GJ to $3.20/GJ which will reduce the discharge period in the GCVA from December 31, 2025 to September 30, 2025 to match the typical gas commodity year of October 1 to September 30.
2. That SaskEnergy set a deadline to make the conversion to billing in energy.
3. That the delivery rate adjustment of 5% for the 2023-24 fiscal year be approved with the provision that no further increases occur during the 2024-25 fiscal year.
4. That SaskEnergy consider and introduce further strategies that will reduce the trend of increasing OM&A expenses.
5. That any outstanding recommendations in the Panel’s report dated December 16, 2022, are carried forward with the understanding that those that have not been implemented or dealt with will continue to be a priority for the company.

A complete copy of the Panel’s report is available on the Panel’s website at www.saskratereview.ca. The site also contains the original rate application, SaskEnergy’s public presentation, the Panel’s terms of reference, information requests to SaskEnergy and the responses, video of the public meeting, and the Panel’s media releases.

The mandate of the Panel is to review the application and provide an opinion on the fairness of the rate adjustments requested, considering the best interests of the customer, the Crown corporation, and the public. The Panel believes these recommendations represent a fair balance impacting the affected parties. These recommendations to the Minister will be reviewed by the government and a final decision on implementation will be made by Cabinet.

For more information please contact Albert Johnston, Chair of the Saskatchewan Rate Review Panel, at 1-877-368-7075 (toll free) or (306) 934-1948 in Saskatoon.