REGINA (Staff) – The bad news is SaskPower rates are going up Jan. 1, 1996.
The good news is this will be the last increase until Jan. 1, 2000.
Late last month the government approved SaskPower’s rate increase proposal, but imposed some limitations, including a four-year freeze on farm, residential and small business rates.
And, instead of being retroactive to Nov. 1, the increases won’t go into effect until Jan. 1.
Farm electrical rates will rise about 14 percent, including approximately $6.95 a month for power use and a $4.95 a month reconstruction charge.
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federal government proposed several months ago to increase the compensation rate from 80 to 90 per cent and double the maximum payment from $3 million to $6 million
Residential rates will increase 12 percent, or about $4 per month for use and $2 per month for reconstruction.
Industrial users will see their rates drop in 1996, 1997 and 1998. They will not pay the capital fee.
Energy minister Eldon Lautermilch said large industrial users are getting a break because they have been subsidizing farm and urban users. In some cases the large clients have been paying 150 percent of the cost of the power they use, he said.
He said the industry is facing deregulation and SaskPower’s rates have to be competitive or industrial users might buy power from another company.
Avoid borrowing
Lautermilch said the capital fee is being charged because the corporation does not want to borrow money for reconstruction.
“We’re moving towards a pay-as-you-go system where people will understand what the costs of delivering one kilometre of line and repairing and maintaining are.”
The government also decided rates for schools, hospitals, nursing homes, curling and skating rinks should be reduced by two percent in 1996. However, they will pay a $10.60 per month reconstruction charge.
