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SaskEnergy Delivery Rate Increase Approved

May 16, 2007

SaskEnergy Delivery Rate Increase Approved

The Provincial Government has approved an average 5.7 per cent delivery rate increase for SaskEnergy, effective June 1, 2007. This increase applies to the delivery rate only, not the actual cost of the commodity. The effect will be an overall bill increase of $2 a month for residential customers and $2.50 a month for farm customers, with modest increases for other customer classes.

SaskEnergy's first delivery rate increase in a decade was recommended by the Saskatchewan Rate Review Panel in its report to government. The last increase to the delivery rate occurred in July of 1997 and increased the overall bill by an average of 2.3 per cent.

"We believe this is a fair and reasonable increase that will help SaskEnergy maintain its financial position and recover the increased cost of delivering natural gas to customers," Crown Investments Corporation Minister Maynard Sonntag said. "Customers will see an average overall bill impact of only 1.5 per cent because there is an increase only to the delivery rate and not to the commodity rate."

Delivery service rates recover the costs of operating and maintaining the natural gas system. Saskatchewan consumers will continue to pay among the lowest natural gas distribution charges in Canada.

"The Consumer Price Index, which reflects many of the operational costs SaskEnergy faces, has risen by more than 20 per cent in the last decade, and as such, we would like to join the Panel in commending the corporation for holding the line on costs for the past decade, while continuing to provide safe, reliable natural gas service to Saskatchewan people at rates that are among the lowest in Canada," Sonntag said.

SaskEnergy's commodity rate, which represents the cost of purchasing customers' natural gas on the open market, remains unchanged at $7.17 per Gigajoule.

Visit SaskEnergy's website at www.saskenergy.com for information about SaskEnergy's Residential Rates and Business Rates, and a list of Questions and Answers regarding SaskEnergy's Delivery Rate Increase.

For more information contact:

Karen Schmidt  
CIC, Regina  
Phone: (306) 787-5889