SaskEnergy says it needs more money to pay for a safer natural gas delivery service.
The Saskatchewan crown corporation today asked the province’s rate review panel for a two-year delivery service increase of an average 2.1 percent effective Sept. 1 and 1.2 percent the following Sept. 1.
This increase would be for the volume-based delivery charge that appears on natural gas bills and is not an increase to the commodity rate, which remains at $3.82 per gigajoule. That is the lowest cost for natural gas since 2000.
The corporation said while actual bills will vary, a typical residential customer would see an increase of $1.46 per month the first year and 87 cents per month the second year.
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SaskEnergy dealt with several line leaks in the past couple of years due to shifting soils and said the rate increase is needed for safety and pipeline integrity programs.
“In 2010 we spent about $7.5 million annually on safety and integrity programs,” said CEO Doug Kelln. “Now that investment is almost $32 million.”
Locating lines and leak surveys continue to be required. SaskEnergy added nearly 7,400 customers last year alone.
The rate review panel will look at SaskEnergy’s application and make its recommendation to the provincial cabinet.
SaskEnergy is expected to review its commodity rate before next fall. This past winter saw natural gas use increase nearly 20 percent over the previous year.
