My SaskWater Rate

Frequently Asked Questions

1. Why does SaskWater adjust rates?
   
   SaskWater's priority continues to be maintaining a safe, sustainable supply of quality water for communities and businesses. Rate adjustments are necessary to:
   
   
   • invest in required capital improvements;
   • provide for increasing operating costs;
   • meet water quality regulatory requirements; and
   • ensure revenues are aligned with the actual costs of providing service.
   
   SaskWater's water supply costs are a significant part of our cost. While these costs remained stable in 2007-2008, construction costs in Saskatchewan increased significantly during this time. The company also faces rising costs for electricity, energy and labour.
   
   
2. What is SaskWater doing to control its costs?
   
   SaskWater is investing in technology such as remote monitoring and is researching sustainable water treatment practices to reduce operating costs and improve service response.
   
   The company is also developing an asset management program that will include a complete inventory of our infrastructure and standardized maintenance schedules. This program will result in reduced equipment failures, extended infrastructure life and overall cost savings.
   
   
3. How does SaskWater sustain infrastructure?
   
   Since being re-mandated in 2002, SaskWater has employed a full-cost pricing methodology to determine potable and non-potable water rates. Full-cost pricing includes all costs to operate, maintain and upgrade water system infrastructure.
   
   SaskWater recovers a portion of its capital assets for future reinvestment and refurbishment of its systems. This ensures the future sustainability of the infrastructure when upgrades are required, and reduces the need for large rate increases by spreading out the cost over a longer period of time.
   
   
4. I think my rates are too high, what are others paying for water?
   
   SaskWater's potable water customers pay rates ranging from $6.93 - $12.69 per sales unit (1000 gallons) depending on the level of SaskWater's capital investment and other localized operating expenses.
   
   Nationally, most water rates do not include the cost to maintain and upgrade capital infrastructure. Rather than burden our customers with substantial increases when infrastructure begins to fail, SaskWater employs a full-cost pricing model and maintains a continuous capital improvement program that spreads the cost over a longer term.
   
   Our municipal rate increases are consistent with other municipalities across Saskatchewan, which so far this year average 5.7%. SaskWater does not enjoy the economies of scale that come with serving large populations in a small concentrated area. A widely dispersed population makes providing service more costly. As provincial utilities continue to recognize the true value of water, the trend towards full-cost pricing will become the norm in all municipalities, regardless of size and location.
   
   
5. How does my rate compare to other SaskWater customers like me?
   
   SaskWater owns and operates 10 regional water systems. Water rates are determined on a per system basis, meaning all customers within a given system pay the same rate. Exceptions include system customers who have elected to pay a capital component in addition to the water rate. However, the rate adjustment only applies to the water supply component.
   
   
6. Who decides if SaskWater can raise its water rates? Is there a rate review panel?
   
   To adjust rates, SaskWater submits an application to government for approval. SaskWater's rates are not subject to the rate review process because our customer base represents only a small portion of the province's population.
   
   
7. Is SaskWater planning to raise rates every year?
   
   SaskWater reviews its rates on an annual basis, which may or may not result in a rate adjustment. As with all businesses, SaskWater is vulnerable to rising input costs in the areas of wages, electricity, construction and water supply. Changes to these factors may impact future water rates.
   
   SaskWater is currently in the process of revising its rate policies and is undergoing a comprehensive cost of service rate study. This study will determine the rates the company will need to charge in the future to recover the costs associated with providing water services in a reliable, effective and equitable manner.
   
   For more information about your SaskWater rate or any other matter please contact Customer Service at 1-888-230-111.