Staying warm this winter could cost a little less if an application by Saskatchewan’s natural gas utility to decrease rates is approved.
The provincial crown corporation announced Aug. 30 it had applied to the Saskatchewan Rate Review Panel for a 2.3 percent cut in the rates it charges farm and residential customers.
The rate reduction would take effect Nov. 1.
The drop from $7.17 per gigajoule to $6.93 would save the average farm $36 per year and the average residential owner $26 per year.
Rates are normally adjusted at the beginning of each gas year in November. SaskEnergy buys gas during the summer and stores it for winter use.
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“This year the cost of gas in storage and the projected price of winter gas have resulted in a rate reduction application,” said SaskEnergy president Doug Kelln.
The company is also projecting a surplus in its gas cost variance account, which is the difference between what SaskEnergy pays for gas on the open market and what it charges its customers.
The basic monthly and delivery charge will remain the same.
The rate review panel will report its recommendation to cabinet within 30 days of receiving SaskEnergy’s application.
