Saskatchewan power customers should prepare for the possibility of higher electricity rates in 2027 after the Saskatchewan Rate Review Panel recommended approving SaskPower’s current 3.9 per cent rate increase but delayed a decision on next year’s increase.
The panel has recommended the provincial government confirm the interim 3.9 per cent system-wide rate increase that took effect on Feb. 1. However, it is waiting for updated financial information from SaskPower before deciding whether to approve another planned 3.9 per cent increase slated for Feb. 1, 2027.
The panel is also warning customers that the final 2027 increase could end up being between 1.5 and 2.5 percentage points higher than the currently proposed 3.9 per cent.
According to SaskPower, each 3.9 per cent increase would add about $5.00 per month to the average residential power bill and about $11.00 per month to the average farm bill.
Why the Panel approved the 2026 increase
After reviewing SaskPower’s application, updates to its financial forecasts, public submissions and an independent consultant’s report, the panel concluded the 2026 increase is justified.
The panel said SaskPower is dealing with several financial challenges, including growing infrastructure investments, higher operating costs, increased fuel and power purchase expenses, lower export revenue and uncertainty surrounding future carbon-related costs.
SaskPower’s updated forecast projects an operating loss of $187 million in the 2025-26 fiscal year, worse than the $147 million loss originally forecast. The utility’s debt level is also expected to remain above its long-term target range.
Why the 2027 decision is being delayed
The panel says it needs more up-to-date information before making a final recommendation on next year’s rate increase. SaskPower has been directed to provide updated financial statements and details on any major changes affecting its application by Nov. 2.
A key issue is the planned Bell data centre project near Regina. The utility’s improved financial outlook for 2026-27 is partly based on expected electricity sales to the facility, but the timing of those revenues remains uncertain.
The panel is also requesting updated information on the federal Output-Based Pricing System, revised financial forecasts and possible changes to rates for certain customer classes.
Balancing affordability and reliability
Panel chair Albert Johnston said the review process tried to balance affordability concerns with the need to maintain a reliable power system.
“The Panel recognizes the affordability pressures facing Saskatchewan households, farms and businesses,” Johnston said. “At the same time, SaskPower must have sufficient revenue and financial capacity to maintain a safe and reliable electricity system.”
Public concerns raised during review
The panel received 162 online comments as well as submissions from stakeholder groups and northern communities. Common concerns included rising electricity costs, fairness between customer groups, major infrastructure investments, SaskPower’s future power generation plans and the level of public information provided about those decisions.
The panel also recommended improvements to future rate applications, including better long-term planning, stronger cost controls, more public disclosure of planning information and the development of policies related to large artificial intelligence data centres and their impact on Saskatchewan’s power grid.
The provincial government will now review the panel’s recommendations and make the final decision on SaskPower’s rate increases.
For more information, please contact Albert Johnston, chair of the Saskatchewan Rate Review Panel, at 1-877-368-7075 toll free or 306-934-1948 in Saskatoon.
