August 11, 2008

SaskEnergy provides Commodity Market Update to Rate Review Panel

SaskEnergy announced today it has provided the Saskatchewan Rate Review Panel (SRRP) with a market update, which included a revised natural gas commodity rate of $8.71/Gigajoule (GJ) (32.71¢/m³).  The SRRP requested a market update as it considers SaskEnergy’s application for a new October 1, 2008

On July 16, 2008, SaskEnergy announced it had applied for a commodity rate of $10.21/GJ (38.33¢/m³), as part of a combined commodity/delivery rate application to the SRRP.  The second part of the application, which deals with a proposed change to delivery costs of $2/month to the Basic Monthly Charge to take effect November 1, 2008, remains unchanged by this update.

With this revised commodity rate, which is a pass-through of market costs without markup, the proposed changes would see the typical residential customer now paying on average $21/month more for their natural gas service this winter, instead of $35/month as indicated in the initial application.

"Natural gas prices for next winter have moved down considerably from the time SaskEnergy prepared its commodity rate application earlier this summer," said Doug Kelln, President and Chief Executive Officer, SaskEnergy.  "SaskEnergy’s gas price management strategy has allowed the lower market pricing to be reflected in the revised rate for customers, while continuing to provide some protection against higher pricing during the upcoming winter.

"While the commodity market remains volatile, this substantial change necessitated a revised commodity rate when the Panel asked for a market update.  This allows the Panel to have the most current information prior to bringing forward its recommendations to Government.  This change would represent an overall total bill increase of 24% for the average residential customer," Kelln said.

SaskEnergy has also just announced two more energy efficiency programs to help customers become more energy efficient.  The ENERGY STAR® Prime Rate Loan Program and a $15 Programmable Thermostat Rebate are available as of August 1, 2008 and will continue through until March 31, 2009.  These programs are designed to help customers make changes in their homes to minimize the effects of rising natural gas prices.

These two initiatives will be added to the existing energy efficiency programs offered by SaskEnergy and the Province of Saskatchewan.  To find out more please visit www.saskenergy.com or call toll free 1-800-567-8899.

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