The Government of Saskatchewan has approved a 3.5 per cent rate increase for SaskPower.

The Crown Corporation originally asked for a 5 per cent increase, but it was reduced to 3.5 per cent by the Saskatchewan Rate Review Panel.

“Every year, SaskPower is keeping up with new records of power consumption, while working to keep power rates as low as possible,” said Dustin Duncan, minister responsible for SaskPower, in a news release. “They face an important challenge to maintain and grow our power grid. With their revised fiscal forecasts during the rate review period, government agrees with the Rate Review Panel that SaskPower can meet this challenge in 2018 with a lower increase. We will continue to challenge SaskPower, and all government agencies, to do more with less, and without compromising service to Saskatchewan homes and businesses.”

SaskPower said it plans to invest the rate increase in maintenance and growth projects in order to reduce the number and length of power outages. The Crown also wants to modernize the power grid to meet the demand for more power in the province, and reduce its greenhouse gas emissions by 40 per cent from by 2030.

“It’s a balancing act that we take very seriously,” SaskPower president and CEO Mike Marsh said in a release. “Electricity is vital in all our lives and for our economy. The power has to be on when and where we need it. SaskPower also has to be financially responsible with its operations. That’s why we’ve optimized our processes, reduced administrative costs and we plan to reduce this spending by an additional $142 million in the next three years using various restraint measures.”

The rate increase will come into effect on March 1. SaskPower customers will see an increase of approximately $4.00 on monthly bills.