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The Saskatchewan Rate Review Panel has recommended that the provincial government confirm SaskPower’s interim 3.9 per cent system-average rate increase, which took effect February 1, 2026. The Panel is deferring its recommendation on the February 1, 2027 increase until SaskPower provides updated financial information later this year, but is advising ratepayers to be prepared for the possibility that the final system-average increase could be approximately 1.5 to 2.5 percentage points higher than SaskPower’s proposed 3.9 per cent.

SaskPower applied for system-average rate increases of 3.9 per cent effective February 1, 2026, and a further 3.9 per cent effective February 1, 2027. The first increase was implemented on an interim basis while the Panel completed its review. SaskPower estimates that each proposed increase would add approximately $5 per month to the bill of the average residential customer and approximately $11 per month to the average farm customer’s bill.

After reviewing SaskPower’s application, its mid-application update, public and stakeholder submissions, responses to information requests and the report of its independent technical consultant, the Panel concluded that the February 1, 2026 increase should be confirmed.

The Panel found that SaskPower is facing significant financial and operating pressures, including an expanding capital program, increasing operating costs, higher fuel and purchased power costs, declining export revenue and uncertainty surrounding future carbon obligations.

SaskPower’s revised mid-application forecast for 2025-26 projected an operating loss of $187 million, compared with the $147 million loss forecast in the original application. SaskPower’s debt ratio is also forecast to remain above its long-term target range, while its return on equity remains below its long-term target.

The Panel determined that more current financial information is required before it can make a final recommendation on the February 1, 2027 increase. SaskPower is required to provide updated financial statements and information on material changes affecting the application by November 2, 2026.

The Panel is seeking updated 2026-27 financial forecasts, further information on the timing and amount of anticipated revenues from the Bell data-centre project, an update on the federal Output-Based Pricing System, and rate options that would move the Oilfields, Reseller and Small Commercial customer classes closer to their respective revenue requirements.

The timing of revenue from the Bell data-centre project is particularly important because SaskPower’s improved 2026-27 financial forecast is driven in part by anticipated additional electricity sales to the project. The Panel’s consultant concluded that the timing of those revenues remains uncertain.

Following its review of the updated information, the Panel will recommend whether the proposed 3.9 per cent system-average increase for February 1, 2027 should be confirmed or revised.

“The Panel recognizes the affordability pressures facing Saskatchewan households, farms and businesses,” said Panel Chair Albert Johnston. “At the same time, SaskPower must have sufficient revenue and financial capacity to maintain a safe and reliable electricity system. We believe the 2026 increase should be confirmed, but the decision on the 2027 rate should be based on the most current financial information available.”

The Panel also made recommendations aimed at strengthening future SaskPower rate applications and protecting ratepayer interests. These include improved long-term resource and rate planning, greater control and reporting of operating costs, increased public disclosure of key planning information, development of a policy for artificial intelligence and other large data-centre loads, and allowing sufficient time for future rate applications to be publicly reviewed before new rates take effect.

The Panel received substantial public input during its review, including 162 online comments as well as submissions from stakeholder organizations and northern communities. Affordability was a recurring concern, along with SaskPower’s future generation choices, the cost and risks associated with major investments, the fairness of rates among customer classes, and the availability of information concerning SaskPower’s planning and decision-making.

The mandate of the Saskatchewan Rate Review Panel is to review Crown corporation rate applications and provide an opinion on the fairness and reasonableness of requested rate adjustments, taking into account the interests of the customer, the Crown corporation and the public. The Panel’s recommendations will be reviewed by the provincial government, which will make the final decision on implementation.