By Matthew Liebenberg
Southwest Booster
The assessment of SaskPower’s financial situation in the report of the Saskatchewan Rate Review Panel and its implications for a proposed rate increase is a matter of concern for the Opposition Saskatchewan NDP, but the provincial government said it will follow a balanced approach on the rate decision.
The Saskatchewan Rate Review Panel’s report on SaskPower’s rate increases was released on Aug. 28.
It recommended that the provincial government confirms SaskPower’s interim 3.9 per cent system-average rate increase, which took effect on Feb. 1, 2026.
However, the Rate Review Panel deferred its recommendation on SaskPower’s proposed 3.9 per cent rate increase on Feb. 1, 2027 until the Crown corporation provides updated financial information by Nov. 2, 2026.
The report refers to SaskPower’s forecast financial position and deteriorating financial metrics. The Panel therefore cautions that Saskatchewan ratepayers should be prepared for the possibility of a system-average increase of about 1.5 to 2.5 percentage points higher than the proposed 3.9 per cent on Feb. 1, 2027.
Minister of Crown Investments Corporation Jeremy Harrison was not available for an interview with this newspaper, but provided a media statement about the report of the Rate Review Panel.
“The Panel confirmed that SaskPower is facing significant financial pressures resulting from aging infrastructure, rising operating costs, and growing electricity demand,” the statement noted. “It also emphasized the importance of affordability for Saskatchewan households, farms, and businesses.”
Harrison’s statement referred to the approach the provincial government will take in the consideration of this report.
“We will carefully review the report and ensure any future decisions strike the appropriate balance between maintaining a reliable electricity system and protecting ratepayers from unnecessary cost increases,” the statement said.
Aleana Young, the Saskatchewan NDP shadow minister for SaskPower, said during an interview with this newspaper that the report represents a “three-alarm fire” for the Crown corporation.
“It’s a fairly remarkable report from an independent consultant in terms of the concerns that it lays out, the warning that bills are likely going to be higher than SaskPower is requesting, because they’ve been unable to provide any financial information to indicate what’s necessary to right the ship and balance the books,” she mentioned. “There are some concerns highlighted about the politicization of the Crown and the inability of SaskPower to be allowed to give information to the panel. It’s fairly remarkable.”
The Panel used a Winnipeg based consulting firm as an independent technical advisor to review the “fairness and reasonableness” of SaskPower’s proposed rate change. The Panel carried out a public consultation process and received submissions from individuals and various stakeholders.
“The report is a confirmation of the concerns that have been raised by the high number of people who engaged with the Panel and provided feedback,” Young said. “The Panel had a very high level of engagement with many concerns expressed from stakeholders and the public. It summarizes them quite accurately and it’s not surprising to hear that affordability, reliability and the independence of the Crown come through very clearly as themes in the report.”
The Saskatchewan NDP is concerned about the cost of SaskPower’s plan to refurbish and operate coal-fired power stations until 2050, and the implications of this decision on future rate increases.
“The Sask. Party government has chosen the highest cost, high risk option for building that infrastructure,” she said. “Every single independent report points to the fact that SaskPower could spend half as much money for more power and greater reliability by building out natural gas, by building out renewables, by keeping that capacity for nuclear into the future. And yet they are choosing for reasons no one understands the highest risk, highest cost option that is at least going to double people’s bill.”
Young said the report highlights various issues that raise governance concerns. The Crown corporation is not expected to achieve its long-term financial targets, its operating, maintenance and administration costs have increased considerably, and SaskPower did not provide life-cycle cost analysis of different generation options that is typical in integrated resource planning processes.
She therefore feels this report is a damning indictment of SaskPower’s decline under the Saskatchewan Party government.
“Whether you’re a big industry or whether you’re looking at your power bill around your kitchen table, you’re incredibly concerned about what this government is doing to your bill and what they are going to do to your future in Saskatchewan,” she said. “This is a government that ought to work for you, that should be concerned about providing you the lowest cost, most reliable, flexible power for the future.”
