Panel confirms SaskPower's 2026 rate hike, defers ruling on 2027
By Your Southwest Media Group
SASKATOON – The Saskatchewan Rate Review Panel has recommended the provincial government confirm SaskPower's interim 3.9 per cent system-average rate increase, which took effect Feb. 1, 2026.
The panel is deferring its recommendation on the Feb. 1, 2027 increase until SaskPower provides updated financial information later this year. It is advising ratepayers to prepare for the possibility the final system-average increase could be roughly 1.5 to 2.5 percentage points higher than the 3.9 per cent SaskPower proposed.
SaskPower applied for system-average increases of 3.9 per cent effective Feb. 1, 2026, and a further 3.9 per cent effective Feb. 1, 2027. The first increase was implemented on an interim basis while the panel completed its review. SaskPower estimates each proposed increase would add about $5 a month to the bill of the average residential customer and about $11 a month for the average farm customer.
After reviewing SaskPower's application, its mid-application update, public and stakeholder submissions, responses to information requests and a report from its independent technical consultant, the panel concluded the Feb. 1, 2026 increase should be confirmed.
The panel found SaskPower is facing significant financial and operating pressures, including an expanding capital program, rising operating costs, higher fuel and purchased power costs, declining export revenue and uncertainty over future carbon obligations.
SaskPower's revised mid-application forecast for 2025-26 projected an operating loss of $187 million, compared with the $147 million loss forecast in the original application. The utility's debt ratio is also forecast to remain above its long-term target range, while its return on equity remains below target.
The panel determined more current financial information is needed before it can make a final recommendation on the Feb. 1, 2027 increase. SaskPower must provide updated financial statements and information on material changes affecting the application by Nov. 2, 2026.
The panel is seeking updated 2026-27 financial forecasts, more information on the timing and amount of anticipated revenue from the Bell data-centre project, an update on the federal Output-Based Pricing System, and rate options that would move the Oilfields, Reseller and Small Commercial customer classes closer to their respective revenue requirements.
The timing of revenue from the Bell data-centre project matters because SaskPower's improved 2026-27 forecast is driven in part by anticipated additional electricity sales to the project. The panel's consultant concluded the timing of that revenue remains uncertain.
Once it reviews the updated information, the panel will recommend whether the proposed 3.9 per cent increase for Feb. 1, 2027 should be confirmed or revised.
"The panel recognizes the affordability pressures facing Saskatchewan households, farms and businesses," said Albert Johnston, chair of the Saskatchewan Rate Review Panel. "At the same time, SaskPower must have sufficient revenue and financial capacity to maintain a safe and reliable electricity system. We believe the 2026 increase should be confirmed, but the decision on the 2027 rate should be based on the most current financial information available."
The panel also made recommendations aimed at strengthening future SaskPower rate applications and protecting ratepayer interests. Those include improved long-term resource and rate planning, tighter control and reporting of operating costs, more public disclosure of key planning information, a policy for artificial intelligence and other large data-centre loads, and enough time for future rate applications to be reviewed publicly before new rates take effect.
The panel received substantial public input during its review, including 162 online comments along with submissions from stakeholder organizations and northern communities. Affordability was a recurring concern, along with SaskPower's future generation choices, the cost and risks of major investments, fairness of rates among customer classes, and the availability of information on SaskPower's planning and decision-making.
The Saskatchewan Rate Review Panel reviews Crown corporation rate applications and gives an opinion on the fairness and reasonableness of requested rate adjustments, weighing the interests of the customer, the Crown corporation and the public. Its recommendations go to the provincial government, which makes the final decision on implementation.
For more information, contact Albert Johnston, chair of the Saskatchewan Rate Review Panel, at 1-877-368-7075 toll free or 306-934-1948 in Saskatoon.