New Agricultural Operation Utility Costs

Res #: 15-08A
Number: 15
Year: 2008
Midterm: No
Expired: Yes
Responses Received: No
Departments: Saskatchewan Ministry of Crown Corporations

Resolution No. 15 – 08A
New Agricultural Operation Utility Costs

BE IT RESOLVED that SARM lobby the Provincial Government to assist new farmers in the cost of utilities associated with the development of a new agricultural operation.

Response from Honourable Ken Cheveldayoff, Minister of Crown Corporations

Response from SaskPower

SaskPower provides several levels of investment in new farm services, which are intended to offset some of the costs to provide electrical service.  There are two approaches to investing in a new farm service, and the difference in approaches is based on the size of electrical load.  Detailed information on the various options is available from SaskPower.

Response from SaskEnergy

Like other Canadian natural gas utlities, SaskEnergy is mandated to recover, without profit, the cost of the gas we purchase on the open market for our customers.  When doing so, we strive to provide rates that are fair and equitable across our customer classes.  Artificially lowering our rates to benefit one group of customers would mean that others would have to pay more than their share for the natural gas they consume.  Most would not find such "cross-subsidization" to be fair and equitable, and as a result, the situation does not exist in any Canadian province.

Response from SaskTel

SaskTel understands the importance of providing affordable local access telephone service in rural Saskatchewan.  SaskTel faces a unique challenge of having to provide comunications services to one of the most geographically dispersed populations in the country.  With the fewest customers per kilometre of any Canadian province, this is a very costly endeavour for SaskTel.
The rates that SaskTel charges for its services are tariffed rates, approved and regulated by the Canadian Radio-televison Telecommunications Commission (CRTC).  These rates are applied consistently by SaskTel to all customers.
For a residential customer outside of a base boundary, such as a farm or acreage, the first line costs $475, and two additional lines would cost $452 each if activated at the same time.  If the telephone service drop and facilities are in place and a field visit is not required, SaskTel charges $35 for service connection.  If the facilities are in place but a field visit is required, SaskTel charges $75 for service connection.
Excess mileage charges also apply to rural customers whose premises are outside of a base rate boundary.  SaskTel charges 70 cents per quarter mile that a customer's premises lie beyond the base rate area, up to a maximum rate that varies depending on the customers exchange.