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SaskEnergy Requests Commodity Rate Adjustment; Proposed Rate Lower than Last Winter  

September 13, 2006

SaskEnergy Requests Commodity Rate Adjustment; Proposed Rate Lower than Last Winter

SaskEnergy has filed an application with the Saskatchewan Rate Review Panel (SRRP) for a new November 1, 2006 commodity rate of $7.56/Gigajoule (GJ), reflective of market prices. While this represents a commodity rate increase of 11 per cent from the current rate of $6.80/GJ, the average residential customer would pay about $27 less from last winter's (November - March) capped rate of $7.95/GJ.

SaskEnergy's current commodity rate of $6.80/GJ has been in effect since April 1, 2006.

"Thanks to our use of storage, we've purchased about 40 per cent of next winter's gas at very attractive prices. However, market prices for the upcoming winter have remained considerably greater than SaskEnergy's current commodity rate, resulting in this rate application," said Ken From, Senior Vice President, Gas Supply and Business Development, SaskEnergy. "A typical residential customer uses the majority of their natural gas during the high consumption winter months from November through March. If this rate is approved customers will actually see a slight decrease in their bill compared to last winter, given normal weather conditions."

Due to continued volatility in the natural gas marketplace, From said SaskEnergy could be providing a revised commodity price forecast to the Rate Review Panel to account for any expected swings in market pricing during the review period.

"Natural gas is sold at cost, and while we do not anticipate any dramatic change in our application, we always want to provide the most accurate prices to our customers," From concluded.

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 www.skenergyshare.com or call toll-free 1-866-409-9770.


For further information, please call:

Ken From    
Senior Vice President, Gas Supply and Business Development     
Phone: (306) 777-9366