A review of SaskPower's request for a 13 per cent hike to electricity rates in the province has concluded an 8.5 per cent jump would be more reasonable.

The government-owned utility proposed the higher rate, to take effect May 1. An independent panel examined the power company's proposal and released its recommendations, which are non-binding on the government, on Monday.

Ken Cheveldayoff, the minister responsible for Crown corporations, responded by saying he will take time to analyze the recommendations and that no hike would be implemented on May 1.

In its report to Cheveldayoff, the rate review panel said SaskPower could achieve its goal of maintaining a reasonable return to the government by reducing some of its costs.

The panel's major cost-saving recommendation touched on a proposal by SaskPower to install automatic meter-reading technology. The panel said that program, estimated to cost $15.9 million, should be thoroughly examined to see if it would be worthwhile. The panel said SaskPower should also see what other Crown utilities in the province are doing in that area, to find ways to work together and save money on automatic metering technologies.

The provincial cabinet has the final say on rates for Crown utilities.

Cheveldayoff said he wouldl take at least a week to digest the recommendations. He said any rate hike the government settles on would not be made retroactive to May 1.