SaskEnergy applies for lowest commodity rate in 19 years
SaskEnergy recently announced it has applied to the Saskatchewan Rate Review Panel to lower its Commodity Rate from $3.65/Gigajoule (GJ) to $2.65/GJ, effective April 1st, 2019. SaskEnergy is also asking the Panel to approve a 3.7% Delivery Service Rate increase for April 1st, 2019.
The two rate adjustments combined will see a total bill decrease of 8.8% for the average residential customer, or annual savings of $81.
“We all know how vital reliable natural gas service is to the people and businesses of Saskatchewan. Natural gas is the choice of energy for our nearly 400,000 customers and we’re pleased to be able to offer near record low commodity rates,” said Ken From, President and Chief Executive Officer, SaskEnergy. “These low market prices speak to the efficiency of the natural gas industry and the abundance of this low-emissions fuel resource in Canada.”
In addition, SaskEnergy has asked the Panel to support an interim rate of $2.95/GJ, effective November 1st, 2018. From said this will allow customers to take advantage of lower rates during the winter heating season, while also providing the Panel the necessary time it requires to analyze SaskEnergy’s application, and collect customer feedback.
The proposed April 1st, 2019 Commodity Rate of $2.65/GJ is the lowest SaskEnergy has offered customers since 1999.
The proposed 3.7 per cent Delivery Service Rate increase will provide additional funding for higher costs of safety and system integrity programs, and infrastructure investments for projects such as the relocation of major pipeline infrastructure outside of large urban centres.
Twenty years ago, the average home in Saskatchewan used approximately 130 GJs of natural gas a year.
In recent years, that usage per household is down to about 100 GJs thanks to more energy-efficient furnaces and water heaters, homes built to higher efficiency standards and homeowners managing their energy use.