By Patrick Book

Expect to pay more for natural gas in Sask this year

Apr 2, 2013 | 6:37 AM

Expect to pay more for your natural gas later this year.

SaskEnergy did not raise its rates this winter, despite energy costs rising throughout most of Canada. But a news conference on Tuesday will reveal details of the company's request for a modest increase.

The price of gas isn't at issue, according to spokesperson Dave Burdeniuk. It's the costs of growth, having added 7,400 new customers in 2012, and safety that SaskEnergy is grappling with.

“You have to go back to the heyday in the 1950s and 1960s when we were building out our system or the major push that we did in the 80s to find customer numbers that big,” Burdeniuk admitted in an interview Monday. He says the cost associated with expanding the company's infrastructure is significant.

The province's growth is also manifesting in construction; Saskatchewan eclipsed records for the value of building permits issued last year. But for every construction project that happens in a serviced area someone has to come out and locate the lines so they aren't accidentally punctured.

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“We can get up to 200 line hits a year,” he said. “There can also be up to 200 above-ground facilities by snow removal equipment.”

The company has employees on staff who do that work but it also contracts out to meet the demand. That also allows for all utility lines to be laid out at once.

Another cost pressure is leak surveys, the process of sending technicians out to an area that is prone to soil moisture and shifting to ensure lines haven't been broken.

“We make sure that there are leak surveys that are done throughout our system every year but we also ramp up surveys in areas we think there will be more ground shifting.”

The technology used for that has advanced as well, which also comes with an increased cost.

A rate review panel and the provincial cabinet will have to approve any increase request before it comes into effect.

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