SaskPower rate hike too high, says review panel

The Saskatchewan Rate Review Panel says the second of two rate increases requested by SaskPoweris too high.

It urged the government Tuesday to denySaskPower's request for itssecond five-per-cent rate increase in six months.

Instead, it is recommending a lower rate of 3.5 per cent tokick in on Jan. 1.

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SaskPower'searlierapplication for a rate increase, effective July 1, 2016, has the backing of the panel. That hike was authorized by the government on an interim basis earlier this year.

The panel said in a news release that it recommended lowering the second rateto soften the blow of two increasesin six months.

"The public and particularly industrial users expressed great concern about being able to adjust to these two increases over such a short time period," the release said.

"The panel recognizes this recommendation will financially impactSaskPowerand, as such, it will need to find areas where they can reduce expenses or enhance other revenue sources to accommodate this smaller rate increase."

It is up to provincial cabinet todecide ifthe rate increases should go aheadand at what rate.

If the panel's recommendations are approved, the July 1 increasewould raisethe average residential customer's monthly bill by $5.05. It would then rise a further $3.71 on Jan. 1.

The review panel also recommended the government encourage SaskPower to undertakea comprehensive public and stakeholder engagement process for its integrated resource supply plan.