SaskPower asks to increase rates by 4% in both 2022 and 2023

People in Saskatchewan might see a rate increase on their SaskPower bills in 2022 and 2023.

The Crown Corporation says it has applied to the Saskatchewan Rate Review Panel (SRRP) for a rate increase of four per cent this year andfour per cent in 2023, according to a SaskPower media release.

The company says it hasn't increased its rates in four years.

The seven members on the Saskatchewan Rate Review Paneladvise the Saskatchewan Government on rate applications proposed by SaskEnergy, SaskPower and the SGI Auto Fund, according to the panel'swebsite.

If approved, customers might see an average increase of approximately $5 on their residential bills starting Sept. 1,according to SaskPower. An additional hike of$5 would follow in April 2023.

The Crown corporation said the application took into consideration the need to maintain a reliable and sustainable electricity system.

"Today, SaskPower requires additional funding to increase renewable generation, modernize the power system and ensure a sustainable future for us all," Troy King,interim president and CEO, saidin the news release.

"We've worked hard to avoid rate increases in recent years."

In addition to this application, SaskPower is also asking for approval to change its rate design methodology, which would not affect residential or most farm and small commercial customers, according to the Crown corporation.

"The change is revenue neutral to SaskPower and will only affect customers who pay separate demand and energy charges."

In 2017,SaskPower submitted an application to the SRRP to increase its rates by five per cent in 2018.

The Saskatchewan Rate Review Panel said it spokewith the public as well as technical consultants and decided to only recommend a rate increase of 3.5 per cent to the government, which the provincial Cabinet eventually approved.

This year's rate application is set to be posted to the Saskatchewan Rate Review Panel's website within the next few days, according to SaskPower.