Natural gas hikes will fuel more hardships for farmers, with intensive agricultural operations expecting the hardest hit.
Sask Energy has asked for increases beginning June 1 that could see farm bills jump more than 40 percent, or about $41 a month on average for grain farms.
High energy users like greenhouses and poultry barns could see increases of 47 to 50 percent, or $135 to $771 per month.
“Any increase is big,” said Shannon Storey, National Farmers Union women’s president.
“Farmers are looking at another year of poor income.”
Read Also
University of Manitoba hires potato researcher
A new research chair position at the University of Manitoba will tackle sustainability in the potato industry.
Gas increases are passed onto other sectors and end up hiking the price of products like fertilizer, she said.
“To say it’s just $41 is a very narrow look at the problem,” Storey said.
Sask Energy is asking for its second increase in less than a year. The last one came into effect in December, said Ron Podbielski of the crown corporation.
Further increases would not occur before November 2002, with decreases possible before then if natural gas prices drop. He said the increases are necessary due to higher costs of buying gas on the open market and more pipeline expansion to the United States by private producers.
“We’ve seen the most extreme price increases as a result of this in two decades,” he said.
“Where higher prices have taken effect, there have been some difficult consequences.”
The Saskatchewan Rate Review Panel held public meetings across Saskatchewan the week beginning May 14 as part of its efforts to gauge reaction to the increases. It also accepted briefs and comments by phone, fax, mail or e-mail. The deadline for submissions was May 23.
The panel has a handful of Saskatchewan residents, including an economist, accountant and farmer.
“It’s a pretty good broad representation on the panel,” said chair Bob Lacoursiere, who noted the group will also consult with the British Columbia Utilities Commission.
The panel will examine all points of view from consumers to the crown corporation to determine if the proposed increase is fair and reasonable, said Lacoursiere.
It will present its findings to the government by June 1.
In the past, it has fielded few submissions but Lacoursiere expects that to change this time.
“Because the increase request is substantial, I have reason to expect there will be more interest and input,” he said.
Elmer Dahl, like many farmers, was out seeding near Rosthern last week.
He said it is a busy time for farmers to be attending meetings, citing farm work and a census to fill out in mid-May.
He is “irked” at the possibility of further natural gas increases, noting the last one amounted to 22 percent and this one will double that.
“It’s just going to be horrendous.”
Dahl said it will mean cutting back on something else.
“As far as heating, you could go back to wood,” he mused.
He said Sask Energy should do what it can to minimize its own costs in-house before passing on further increases to farmers.
“We can’t pass on our costs,” Dahl said.
Both Alberta and Manitoba have seen two increases in natural gas rates since last fall, with Alberta providing gas rebates to its residents. Manitoba could see another increase beginning next month.
