Swift Current electric rates increased to adjust for Carbon pricing

A report presented to City Council notes that Saskpower has registered with the federal government to be charged via an output-based pricing system which calculates carbon charges to the various sources of generation. The City of Swift Current buys bulk power from Saskpower and sells it to city residents though their own utility.

Mitch Minken, General

Manager, Infrastructure and Operation for the City of Swift Current, noted this year’s increase is year two of a five year federal government plan to continue to increase the Carbon charge on January 1 of each year.

“This is a little different then what you would experience on say gasoline you would buy at a pump. Because this is calculated at the end of the year based on the generation mix that

Saskpower uses. If they use more hydro than they would use coal or natural gas, then that would effect the actual charge. So this is what they estimate it will be and they collect that throughout the year and then they’ll balance that out at the end of the year. If it’s out of balance at that point then they’ll go ahead and re-adjust in subsequent years to recover or pay back that amount,” Minken said.

“They charge us that carbon charge on what we pay them for the electric rates. And then we collect from our customers. At the end of the year we’ve got to match those two up to see where we’re sitting, whether we’re good or we’re not. So one way or another we’ll ‘true up’ at the end of the year.

He noted that if The City of Swift Current collects more than their calculations, the funds would assist city projects. “If we don’t collect enough then we’ll be going back to Saskpower and say you need to adjust the mix so that we do end up being neutral. If we collect more than we pay to Saskpower, then obviously those funds will be used for something City wise. So whether it’s used to fund a capital project or put into operating costs, it will be used within the City. But those adjustments will happen on an annual basis as Saskpower does their ’true up’.”

Thanks to new utility billing software installed by the City, utility users will see this carbon charge as a separate amount on their monthly bills.

“In our new system as it’s rolling out here over the next little while, that is going to be shown as a separate amount on the utility bill.”