Saskatoon Light and Power to Mirror SaskPower Rate Increases
Saskatoon Light and Power (SL&P) customers will experience electricity rate hikes that align directly with increases announced by SaskPower, following approval from the city's governance and priorities committee. The decision, presented by SL&P director Trevor Bell, means residential and commercial customers in Saskatoon will see their bills rise in tandem with provincial utility rates.
Rate Increase Details and Timeline
SaskPower has scheduled a 3.9 per cent rate increase effective February 1, 2026, with an identical 3.9 per cent increase planned for February 2027. These adjustments represent what SaskPower describes as interim increases pending the Saskatchewan Rate Review Panel's final decision. Bell emphasized that SL&P must match these increases because the municipal utility purchases approximately $100 million worth of electricity annually from SaskPower.
"We match because our costs go up," Bell stated during the committee presentation. He explained that a 3.9 per cent increase translates to approximately $3.9 million in additional costs for SL&P, a significant financial burden the utility cannot absorb without passing along to customers.
Financial Impact on Customers
The rate adjustments will affect different customer categories in varying ways:
- Residential customers will see average increases of $5 per month in 2026 and another $5 per month in 2027 according to SaskPower projections
- Saskatoon Light and Power customers specifically can expect a $5.61 increase in February 2026, followed by a $5.85 increase in February 2027
- Farm customers will experience more substantial increases averaging $11 per month in both 2026 and 2027
Questions About Timing and Process
During the committee meeting, Councillor Bev Dubois questioned why SL&P wouldn't wait for the Saskatchewan Rate Review Panel's decision before implementing rate changes. Bell acknowledged that historically, SaskPower has waited for the rate review process to conclude, but noted that "in recent years that hasn't been the case." He added that he wasn't certain why this interim increase was being introduced ahead of the panel's findings.
The Saskatchewan Rate Review Panel, comprised of provincially appointed members responsible for providing objective evaluations of rate applications, announced its review of the proposed increases on January 2, 2026.
Broader Context and Concerns
These increases continue a pattern of regular rate adjustments by SaskPower:
- Four per cent increase in 2023
- Four per cent increase in 2022
- 3.5 per cent increase in 2018
SaskPower has justified the latest increases as necessary to "support record capital investments and continue providing reliable power for the people, businesses and communities of Saskatchewan."
However, the Canadian Federation of Independent Business (CFIB) has expressed concerns about the impact on small businesses and farmers. In a letter addressing the increases, the CFIB stated that "small businesses, including our farm members, are already under significant financial pressure." The organization suggested that the actual impact on farm customers may exceed the projected $11 monthly increase.
The alignment between Saskatoon Light and Power and SaskPower rates ensures consistency across the province's electrical service providers while reflecting the interconnected nature of Saskatchewan's energy infrastructure. As both utilities move forward with these increases, customers across the province will need to budget for higher electricity costs in the coming years.
