SaskPower has submitted an application to the Saskatchewan Rate Review Panel for a 4.9 per cent rate increase, effective Jan. 1, 2013. The increase is needed to fund investments in the province's electrical system to keep up with our growing economy and maintain electrical reliability.

Saskatchewan residential customers will, on average, see their bills increase by between $4-6 per month starting next year.

"This rate increase is needed to fund investments into the province's electrical system to ensure our customers continue to benefit from a safe, reliable and sustainable power supply,"

SaskPower President and CEO Robert Watson said. "Demand for power is expected to grow by 2.9 per cent per year from 2011-2021, and we need to be ready for that growth."

The ongoing replacement and refurbishment of the electrical system, along with the need to reduce greenhouse gas emissions, factor into the need to increase electricity rates. Over the next 10 years, SaskPower plans to spend $10 billion on the province's electrical system, plus another $5 billion on commitments to the company's Power Purchase Agreements.

Two major projects account for a majority of capital expenses in 2013: the carbon capture and storage project at Boundary Dam Power Station and the 200 megawatt expansion of Queen Elizabeth Power Station.

To help offset the impact of rate increases, SaskPower will continue to help customers, both large and small, reduce their electrical use, decrease their power bills, and help protect the environment through a variety of energy efficiency and conservation programs. Visit saskpower.com/save_power for more information.

For more information about SaskPower's rate application, visit saskpower.com/rates