2004 Crown Investments Corporation of Saskatchewan Annual Report

Policy and ProgramsSaskatchewan Rate Review PanelThe Saskatchewan Rate Review Panel (SRRP)was established in 2000 as an advisory body togovernment on proposed rate changes. In 2002, thePanel’s term was extended for three more years.SRRP’s role is to conduct reviews of rate changesproposed by SaskPower, SaskEnergy and SGI (onbehalf of the Saskatchewan Auto Fund). The panelhires consultants, holds public meetings, andseeks input from individuals and organizations. Itconsiders the interests of the customer, the Crown,and the public, and then provides the Minister ofCrown Management Board with an opinion onthe fairness and reasonableness of the proposedchange(s).Government’s commitment to providing thelowest-cost bundle of basic residential utility ratesdid not affect the workings of the panel in 2004.Government did not ask the panel to consider ratechange proposals in light of how they would affectSaskatchewan’s bundle costs. That responsibilityremained with Cabinet. The panel still has animportant role to play as an advisorybody to government, especiallybecause the bundle does not applyto business or commercial rates.its review, the panel recommended reducing theincrease. In January 2005 government accepted thepanel’s recommendations. It approved a reducedsystem-wide average rate increase of 5.65 per cent,retroactive to September 1, 2004. SaskPower wasdirected to issue a credit to all customers, withinterest, for the amount over-collected from thembetween September 1, 2004 and February 28, 2005.The credit appeared on electricity bills inMarch 2005.The members of the panel at December 31, 2004were:mmmmmmmmBoris Kishchuk, Saskatoon, ChairJack Boan, Regina, Vice-ChairJo-Ann Carignan-Vallee, AssiniboiaBernadette Garrett, LandisJoan Meyer, Swift CurrentKen Pontikes, SaskatoonPam Smith, ReginaLinda Thauberger, ReginaFor more information on SRRP, see the panel’s website at www.skrrp.comIn 2004, SRRP conducted two ratereviews. Proposed changes to theSaskatchewan Auto Fund werewithdrawn by SGI in October. SGIreceived new information froman external actuary forecastingan improved financial picturefor the Auto Fund, making a rateincrease unnecessary for theimmediate future. The panel hadnot yet provided its opinion on theproposed rate increase.In December the panel reportedon a rate increase proposal fromSaskPower. Government hadapproved an interim average9 per cent rate increase effectiveSeptember 1, 2004. After conducting19 C I C