Mining Boom Leads to Rate Hike

Mining Boom Leads to Rate Hike

Friday, February 19, 2010 at 14:49

 

 

A boom in the mining and oil sectors is a major reason why SaskPower is applying to increase power rates.

 

SaskPower Acting President Garner Mitchell says companies are looking at opening more mines and drilling for more oil.

 

As a result, there is a strong demand for more power.

 

Mitchell says it costs money to supply that power.

 

As a result, he says SaskPower has applied to the government to increase its rates by an average of 7.5 per cent.

 

Those new rates, if approved, would take effect August 1st.

 

Mitchell says northerners and southern residents will pay that same increase – about six dollars a month.

 

He says it is an average of all SaskPower’s costs.

 

The increase must still go before the Rate Review panel and the provincial cabinet for approval.