REGINA – Natural gas rates for farms will drop 2.4 percent in 1996 if the provincial government approves a SaskEnergy proposal.
Ron Clark, president of SaskEnergy, said lower natural gas costs mean the corporation can pass on savings to customers.
He said the corporation expects to spend $13 million less on gas this year.
“When natural gas prices decrease people should benefit and when it increases then there’s some bad news that they’re going to have to share,” he said. “We’d be roundly criticized if we put (the $13 million) in our pocket.”
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The proposed decrease, subject to a 45-day review process, would mean an annual saving of $15 to $23 for most homes and farms, depending on consumption.
Rates dropped 6.5 percent in 1995 after a 9.5 percent increase the year before.
Although gas rates are decreasing, SaskEnergy plans to increase the basic monthly charge from $9.45 to $9.85. This charge covers service lines, meters, meter reading and accounting.
The cost of gas and the cost of delivery are used to calculate rates.
Clark said when people hear the cost of natural gas has gone down 36 percent over the last two heating seasons they have to realize their bill won’t go down by the same amount because of these other factors in the calculation.
The rate proposal also includes decreases of 7.7 percent for small commercial customers like restaurants and churches, 13.7 percent for large commercial customers such as hospitals and schools and 16 percent for small industrial users like large office buildings and hotels.
If approved, the new rates will be retroactive to Jan. 1.
