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SaskPower is aiming to improve reliability and generate more income through a new agreement that will increase transmission capacity across the Canada-U.S. border.
The Crown power company has signed a 20-year agreement with the Southwest Power Pool, a 106-member group that manages the electrical grid and wholesale power market for the central United States.
The agreement, announced Wednesday, will enable the import or export of up to 650 megawatts of power across the border. Currently, that capacity sits at just 150 megawatts.
The aim of the agreement is to improve reliability, SaskPower said, giving Saskatchewan residents additional sources of power in the event of outages. The agreement will also allow SaskPower to export excess power and generate additional revenue.
“Access to this large market ensures reliable energy is available to Saskatchewan to support our own generating facilities,” SaskPower CEO Rupen Pandya said in a statement.
“This will help manage the integration of more intermittent renewable power such as wind and solar while keeping costs as low as possible for customers.”
SaskPower will build transmission facilities to increase capacity on the Saskatchewan side, while the Power Pool will handle the necessary construction on the American side.
Customers in Saskatchewan will notice an increase on their power bills this fall, with SaskPower rates increasing by four per cent in September, the company’s first rate hike since 2018. A second four-per-cent hike has also been approved for next April.