Alec Salloum
Regina Leader-Post
SaskPower is $136 million in the hole after the first three months of the fiscal year, despite the Crown corporation predicting a profit in 2025-26.
The loss is attributed to “a $51 million decrease in Saskatchewan electricity sales,” says a first-quarter report released in late August.
Over the same time period last year, the Crown corporation posted $8 million in losses. Total revenue for this quarter came in at $721 million, down $45 million from the previous year over the same time period, while expenses came in at $857 million, up $83 million year-to-date.
“It’s not news that anyone wants to see,” said Keith Willoughby, dean of the Edwards School of Business at the University of Saskatchewan.
According to the 2024-25 annual report from SaskPower, net income for this fiscal year “is expected to be $126 million,” up $50 million. That anticipated increase was anchored to a belief there would be an increase “in electricity sales demand, higher customer contributions and increased export opportunities.”
Willoughby said it’s still a bit too early to draw any conclusions, but the Crown corporation will have to absorb the loss.
“The sky is not falling, but let’s also pay attention,” he said, adding it would be prudent to wait for the next two or three quarters of performance before making any assessments.
At the same time, increased expenses and decreased revenues pose the conditions for a “perfect storm,” said Willoughby.
Also at play is the province axing the collection of its industrial carbon pricing program, termed Output-Based Performance Standards (OBPS).
For Willoughby, that complicates the answer as to whether he foresees a rate hike coming. “It’s plausible,” he said, adding there are too many variables to make a balanced assessment.
According to the report: “SaskPower paused collection of the federal carbon charge rate rider effective April 1, 2025, as mandated by the Government of Saskatchewan. This mandate resulted in a $59 million decrease in Saskatchewan electricity sales.”
Aleana Young, NDP critic for SaskPower, indicated the losses recorded in the report were historic, and would lead to increased power bills.
“In an election year, they don’t raise rates,” noted Young, “and then as soon as the election is done, what we saw last term was they raised power bills.”
Young claimed the government was not focused on affordability and instead said it was “more focused on things like manipulating the crowns, getting their cronies and insiders on Crown boards.”
An emailed statement from the province said the government “will continue to prioritize reliable, affordable power and stable rates for Saskatchewan residents.” It went on to call the NDP “lost and reckless,” while claiming the Opposition “would shut down coal, embrace the federal government’s Clean Electricity Regulations and triple power bills while compromising the reliability of our electricity grid.”
The province did not indicate whether the report augured a future increase to power bills.
alsalloum@postmedia.com
