A new report from Saskatoon's city-owned power utility says it needs more money to keep power reliably running across the city.

In a report to city councillors, Saskatoon Light & Power said it spends roughly $16 million on fixing everything from power lines to transformers and street lights every year. However, keeping the system in good working condition would cost roughly $23 million, leaving a funding gap of $7 million per year.

"A possible risk remains that assets may begin to deteriorate past recommended condition targets unless a long-term capital funding strategy is implemented," read the report.

According to the report, 10 per cent of the city's distribution and metering equipment is in poor condition, with six per cent of street lights in poor or very poor condition.

"It is important to address the condition of assets in fair to very poor condition before they deteriorate further," it reads.

The problem is compounded by the city's unwillingness to increase power rates from the rate set by SaskPower. Roughly half of the city is hooked into the SaskPower grid, and administration wants to make sure all customers are billed at the same rate for power.

Ultimately, the report recommends that SL&P spend more of its profits on fixing infrastructure. While this solution wouldn't require an increase in property taxes, it would mean less money would go to the city.

By 2022, 25 per cent of the company's expenses would go toward return on investment to the city, down from 28 per cent this year.

Two photos showing dirt and contamination inside a switchgear and a 'catastrophic failure' of a contaminated switchgear. (Saskatoon Light & Power)

Once the company's infrastructure gets to acceptable levels, the return on investment would be raised back up to its initial level.

The report said that the company spends less on capital projects than other regional utilities but the company's service is quite reliable.

Councillors will receive the report at the city's standing policy committee on environment, utilities and corporate services Monday morning.