The Saskatchewan Rate Review Panel has recommended the provincial government approve SaskPower‘s 3.9 per cent rate increase that took effect Feb. 1, but delayed a decision on a second proposed 3.9 per cent increase planned for Feb. 1, 2027.
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The panel says it needs more up-to-date financial information from SaskPower before deciding whether to approve next year’s increase.
The panel also warned the eventual 2027 increase could end up being between 5.4 and 6.4 per cent if additional financial pressures materialize — significantly higher than the currently proposed 3.9 per cent.
Each 3.9 per cent increase adds about $5 per month to the average residential power bill and about $11 per month to the average farm bill, SaskPower says.
Why the panel approved the 2026 increase
After reviewing SaskPower’s application, updates to its financial forecasts, public submissions and an independent consultant’s report, the panel concluded the 2026 increase is justified.
The panel said SaskPower is dealing with several financial challenges, including growing infrastructure investments, higher operating costs, increased fuel and power purchase expenses, lower export revenue and uncertainty surrounding future carbon-related costs.
SaskPower’s updated forecast projects an operating loss of $187 million in the 2025-26 fiscal year, worse than the $147 million loss originally forecast.
The utility’s debt level is also expected to remain above its long-term target range.
Why the 2027 decision is being delayed
The panel says it needs more current information before making a final recommendation on next year’s rate increase.
SaskPower has been directed to provide updated financial statements and details on any major changes affecting its application by Nov. 2.
A key issue is the planned Bell data centre project near Regina. The utility’s improved financial outlook for 2026-27 is partly based on expected electricity sales to the facility, but the timing of those revenues remains uncertain.
The panel is also requesting updated information on federal carbon cost impacts.
Political dispute over the review
The Saskatchewan NDP says the report raises serious concerns about the management of SaskPower and the information provided during the rate review process.
“The report recommended against the proposed 2027 rate increase, stating that additional information was needed to justify it,” said Aleana Young, the NDP’s Shadow Minister for Economy, Jobs and SaskPower.
Young argued the report shows the government failed to provide enough information for the panel to fully assess SaskPower’s financial position. She also pointed to findings in the panel’s consultant report, which noted the utility did not provide certain lifecycle cost analyses that are common in electricity planning processes.
“The report is brutal. It’s a damning indictment of the devastation that Scott Moe and Jeremy Harrison have inflicted on SaskPower,” Young said.
The NDP also highlighted figures in the report showing SaskPower rates have increased by nearly 75 per cent since 2007, compared to a 54 per cent increase in the Consumer Price Index over the same period.
Jeremy Harrison, Saskatchewan’s Minister responsible for Crown Investments Corporation, said the panel confirmed SaskPower is facing significant financial challenges, including aging infrastructure, rising operating costs and growing demand for electricity.
“The Panel confirmed that SaskPower is facing significant financial pressures resulting from aging infrastructure, rising operating costs and growing demand for electricity,” Harrison said.
The government says it will review the panel’s report before making a final decision on the 2026 rate increase.
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