By Carol Baldwin
Local Journalism Initiative Reporter
Wakaw Recorder
On Friday, January 2, SaskPower announced it is seeking a 3.9 percent rate increase effective February 1, 2026, followed by another 3.9 percent increase on February 1, 2027.
“Utilities across Canada continue to face considerable rate pressures, and SaskPower is no exception,” said Rupen Pandya, SaskPower President and CEO. “We will continue to pursue a strategy of balancing the need for moderate rate increases with our required capital investments to maintain reliability for customers.”
The Crown corporation said it plans to move forward with a rate application to the Saskatchewan Rate Review Panel. The February 1, 2026, increase will be implemented on an interim basis but will remain subject to public review.
The average residential customer will see increases of $5 per month in 2026 and 2027. The average farm customer will see $11 per month in both years. SaskPower’s most recent rate increases were 4 percent each in 2022 and 2023, after a four-year pause.
In its rate application, the main drivers of the rate proposal are additional investment in transmission projects and other capital-related expenses. In addition, SaskPower is forecasting an increase in operating, maintenance, and administration (OM&A) expense, largely due to increased maintenance on transmission and distribution systems and the generation fleet. New projects, corporate initiatives and general inflationary pressures also contribute to the increased OM&A expense. Increased demand for electricity, lower export revenues and increased fuel expenses are also factors in this rate application.
Many assets are beyond their expected lives and require refurbishment or replacement. In addition, the demand for electricity in the province continues to increase, requiring investment to support growth.
“SaskPower will continue to make the necessary investments to ensure power is available for all customers whenever it is needed. In the coming years, SaskPower will continue to revitalize its coal-fired power plants, expand transmission and distribution systems, and modernize the provincial grid.”
Last fall, Minister of Crown Investments Corporation Jeremy Harrison announced $900 million would be allocated for the coal fleet revitalization. He also noted that building new natural gas plants instead of refurbishing coal would require much higher rate increases.
Costs for SaskPower’s three large-scale natural gas power stations have risen sharply. The Chinook Power Station in Swift Current, which came online in 2019, cost $605 million. The Great Plains station in Moose Jaw, which came online five years later in 2024, cost $825 million. The Aspen Power Station at Lanigan is expected to cost $1.7 billion, more than double that of the Great Plains station.
“SaskPower is committed to keeping rates as low as possible for customers and maintaining affordability while ensuring the financial health of the company,” last week’s release said.
The Saskatchewan Rate Review Panel is an appointed seven-member panel whose mandate is to review rate applications submitted by SaskPower, SaskEnergy and Saskatchewan Government Insurance Auto Fund, and provide the government with an objective evaluation of each rate application.
The Minister responsible for the Crown Investments Corporation appoints panel members based on their understanding of the financial and economic environment in which the Crowns operate, and the issues involved with proposed rate changes. They are also chosen for their involvement in their communities, and for their volunteer work at the local, provincial and national levels.
Members of the Rate Review Panel include Albert Johnston (Chair), Duane Hayunga (Vice Chair), Bonnie Guillou, Glenn Dutchak, Kim Hartl, Keith Moen, and Sid Katzman. Hayunga, Dutchak, and Hartl’s appointments ended on December 31, 2025; new panel members are not identified on the website.
The process of the rate review involves the Minister responsible for the Crown Investments Corporation providing the Panel with instructions regarding the scope of each review. The Panel then posts the rate application and specific terms of reference on its website, before hiring independent experts to assess the application and provide their technical advice to the Panel. The Panel then invites comments or submissions from customers and the public by email, letters, telephone messages, Facebook and X.
The Panel analyzes all of the materials received from the Crown corporation, customers, the public and its independent consultants. It prepares and submits a written report containing its observations and recommendations to the Minister responsible for the Crown Investments Corporation. The Minister and President responsible for the particular Crown are invited to attend a presentation. The Panel’s report and a media release summarizing the main elements of the report are posted on the Panel’s website. Finally, the Minister for the Crown presents the Panel’s final report, together with the Crown Corporation’s analysis of the report and recommendations, to Cabinet.
Public consultation is held to inform the community, encourage discussion, and address any questions. During the review process, information is provided to the public by posting relevant documents, including application materials, media releases, notices of public meetings, transcripts, the technical expert’s report, and the Panel’s final report.