SaskPower will see a reduction in their proposed rate increase for the coming year.

What was once planned to be a 5% increase for 2017, the rate increase has been lowered down to 3.5% for the year, effective January 1st, 2017.

Heather Johnson, a spokesperson for SaskPower, explains the Rate Review Panel's decision to reduce the initial increase.

"Their independent assessment was that SaskPower most definitely does need to increase rates to meet its infrastructure obligations.

However, taking into consideration customer needs as well, they opted to reduce the request," she said.

Infrastructure obligations currently in place for SaskPower, with approximate project cost, include:

-Pasqua to Swift Current transmission line ($260 million)
-Kennedy to Tantallon transmission line ($113 million)
-Construction of Chinook Power Station ($680 million)
-Distribution customer connects ($509 million)
-E.B. Campbell Hydroelectric Station life extension ($245 million)
-Wood pole remediation ($498 million)

With the rate adjustments agreed upon by Cabinet, the SaskPower spokesperson explains what customers will be able to expect for 2017.

"Just so people have a sense of what they'll be paying, we found that the average residential customer will see about an additional $4 per month on their bill in 2017 with this increase," she said.

This is welcome news to SaskPower customers, after initial estimates earlier this year showed a potential $9 monthly increase.