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October 11, 2006
SaskEnergy provides Rate Review Panel with Market Update
SaskEnergy today provided the Saskatchewan Rate Review Panel (SRRP) with a market update, which included a revised natural gas rate of $7.17/Gigajoule (GJ). SaskEnergy revised its price forecast because of the recent decline of natural gas prices.
"Our government is committed to providing Saskatchewan citizens with the lowest cost utility bundle in Canada," Minister Responsible for SaskEnergy Andrew Thomson said. "By providing this market update to the Panel, SaskEnergy is working to ensure that SaskEnergy customers pay the lowest possible rate for natural gas this winter."
The new rate represents an increase of 5.4% from the current rate of $6.80/GJ. Under this revised rate, the average residential customer would pay about $60 less from last winter's (November - March) capped rate of $7.95/GJ.
On September 13, 2006, SaskEnergy had applied for a commodity rate of $7.56/Gigajoule (GJ), indicative of natural gas market prices at that time. SaskEnergy does not mark-up the price of gas, as natural gas is sold to Saskatchewan customers at cost.
SaskEnergy's proposed rate includes both the cost of gas in storage, as well as the expected future price for gas over the coming months. The SaskEnergy gas price management strategy is designed to help protect customers from sudden spikes in market prices, while allowing for the ability to capture a portion of any decline in market price.
SaskEnergy encourages customers to participate in the energy conservation programs of Saskatchewan Energy Share, which offer homeowners of all incomes ways to reduce energy consumption and save money. To find out more about Saskatchewan Energy Share programs please visit Crown Investments Corporation of Saskatchewan or call toll-free 1-866-409-9770.
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