Gas bills could be cut by another $3, SaskEnergy says
Last Updated: Tuesday, March 10, 2009 | 9:37 AM CT
CBC News
SaskEnergy says its updated rate reduction request will result in bills being lowered by about $23 a month for the typical residential customer. (File/CBC)After applying in February to reverse last year's big natural gas hike, SaskEnergy is looking for an even bigger cut.
On Tuesday, the Crown-owned utility provided the Saskatchewan Rate Review Panel with a "market update" that it said would translate into a $23-a-month savings for the typical residential customer. That amounts to about 21 per cent off the gas bill.
In February, SaskEnergy had applied for a reduction equivalent to about $20 a month.
The review panel asked it to consider a bigger decrease.
The latest proposal needs the approval of the review panel, with the provincial cabinet having the final say. If it goes ahead, the reduction will take effect April 1.
Last October, in response to skyrocketing commodity prices, SaskEnergy hiked its prices by 20 per cent. It had locked in its gas at $8.51 per gigajoule.
However, since last summer, the spot price for natural gas has fallen by more than half that.
SaskEnergy said Tuesday its revised natural gas commodity rate will be $5.96 per gigajoule.
