SaskPower seeking 3.9% rate increases in 2026 and 2027

By Brian Zinchuk

Governments often release bad news on Fridays — a tactic highlighted in a first-season episode of The West Wing titled “Take Out the Trash Day.” True to form, at 1 p.m. on Friday, Jan. 2, SaskPower announced it is seeking a 3.9 per cent rate increase effective Feb. 1, 2026, and another 3.9 per cent increase on Feb. 1, 2027.

Poplar River Power Station, one of three coal-fired power stations that are slated for refurbishment. Photo by Brian Zinchuk

The Crown corporation said the hikes are needed to “support record capital investments and continue providing reliable power for the people, businesses and communities of Saskatchewan.”

“Reliability and energy security are top priorities,” the release stated. “SaskPower will continue to make the necessary investments to ensure power is available for all customers whenever it is needed. In the coming years, SaskPower will continue to revitalize its coal-fired power plants, expand transmission and distribution systems, and modernize the provincial grid.”

Last fall, Minister of Crown Investments Corporation Jeremy Harrison announced $900 million would be allocated for the coal fleet revitalization. He also noted that building new natural gas plants instead of refurbishing coal would require much higher rate increases.

Costs for SaskPower’s three large-scale natural gas power stations have risen sharply. The Chinook Power Station in Swift Current, online in 2019, cost $605 million. The Great Plains station in Moose Jaw, online in 2024, cost $825 million. The Aspen Power Station in Lanigan is expected to cost $1.7 billion — more than double Great Plains.

The announcement came just 12 hours after Alberta’s 1,760 wind turbines, with a combined capacity of 5,684 megawatts, produced zero power collectively at 1:18 a.m. on Jan. 2, highlighting challenges in energy reliability.

SaskPower’s NDP critic Aleana Young has frequently warned that rate increases would be needed to cover expenditures, including coal refurbishments.

“Utilities across Canada continue to face considerable rate pressures, and SaskPower is no exception,” said Rupen Pandya, SaskPower President and CEO. “We will continue to pursue a strategy of balancing the need for moderate rate increases with our required capital investments to maintain reliability for customers.”

The Crown corporation said it plans to move forward with a rate application to the Saskatchewan Rate Review Panel. The Feb. 1, 2026, increase will be implemented on an interim basis but remain subject to public review.

The average residential customer will see increases of $5 per month in 2026 and 2027. The average farm customer will see $11 per month in both years. SaskPower’s most recent rate increases were 4 per cent each in 2022 and 2023, after a four-year pause.

“SaskPower is committed to keeping rates as low as possible for customers and maintaining affordability while ensuring the financial health of the company,” the release said.

NDP response

In an emailed statement, NDP Leader Carla Beck blamed the Saskatchewan Party for the rate increases:

“Scott Moe and the Sask. Party have driven our province’s finances into the ground, and there’s one group that will pay the price — Saskatchewan taxpayers. People here already report the highest financial anxiety in the country — four-in-10 are borrowing money just to put food on the table and pay rent, which has increased for 41 straight months.

“Now, they’re facing increases on home power bills and car insurance. We warned the Sask. Party repeatedly during the Fall Sitting, but they ignored us and even stated there wouldn’t be increases.

“These increases from SaskPower and SGI are just the beginning of what is a fiscal trainwreck from an incompetent premier and ministers who have forgotten who they serve. Scott Moe claims Saskatchewan remains affordable — but clearly, everyday people don’t agree.

“The Saskatchewan NDP will continue to fight to make life affordable, and when we form government, we will act on Day 1 to cut costs and clean up the massive mess this government has made of our finances.”