SaskPower annual report details $149M year-over-year drop in net income

SaskPower's latest annual report for the 2021-22 fiscal year revealed a drop in net income of $149 million compared to the previous year.

The report, released Wednesday, says the Crown corporation had a net income of $11 million in 2021-22, down from $160 million.

Minister Responsible for SaskPower Don Morgan said Wednesday he partially blames dry weather conditions for the change.

"The reduction in earnings was largely due to extremely dry conditions, which led to a 33 per cent decrease in hydro generation," said Morgan.

The government said other factors included the federal carbon tax and an increased demand for services.

Opposition NDP economy critic Aleana Young said SaskPower should focus on diversifying power sources.

"We need a Crown corporation that is investing in all measures of power generation, not just in coal or natural gas," said Young. 

Morgan said renewable power sources are being implemented, but that traditional power sources are essential, too.

"We'd obviously like to have more hydro, but it's not feasible to add additional hydro capacity," he said. "The other two significant options are wind and solar.

"Both of those are not reliable base-load suppliers. So, you have to have backup by way of fossil fuels."

The Crown corporation intends to follow through with proposed rate increases of four per cent this year and another four per cent next year.

Young said now is not the time to impose a rate increase in Saskatchewan, citing increased costs of living and a "generational affordability crisis."

"When inflation is sky high, when people can't afford to fill up their tanks, we see a government unwilling to take any action at all," said Young.

Morgan said that if this year's rate increase is approved, it would add $60 million to the books for the current fiscal year.