The province's electric utility SaskPower spent $981 million on capital projects last year and plans to spend even more this year.

The provincial Crown corporation is rebuilding and replacing aging equipment.

The company released its annual report Wednesday, which calls for $10 billion in spending over the next 10 years, all for infrastructure.

Bill Boyd, the minister responsible for SaskPower, said rate increases can be expected.

However, he said the government would prefer smaller increases each year rather than big hikes in the future.

"We would prefer and favour small and moderate increases, perhaps on an annual basis, rather than larger, one-time increases in the future," he said.

The government was not planning to take any money from SaskPower, in the form of a dividend, this year.

Last year it posted a profit of $147 million.

Boyd said the money is needed for capital projects.

SaskPower's latest rate hike, a jump of five per cent, took effect on Jan. 1.

The utility is also preparing for potential spring flooding by stockpiling more than a month's worth of coal at its Boundary Dam power plant.

The road between the coal-fired power plant and local coal mines was flooded in 2011, reducing operations.

With files from The Canadian Press