The newly issued The Water Power Amendment Regulations, 2025 (25/2025) amends The Water Power Regulations under The Water Power Act. These changes introduce updates, including definitions, rental calculations, and payment procedures associated with the use of water for generating power. The amendments begin by amending Section 2 of the original regulations to incorporate several key definitions, including “consumer price index,” “fiscal year,” “generating capacity,” “KVA rating,” and “water power rental rate.” These additions lay the foundation for the revised calculation methods used to determine the cost of water rentals for power generation.

Section 6(1)(a)(ii)(C) is updated to reflect the new method of calculating water rental, linking it directly to Section 12. Additionally, the outdated reference to the “Queen’s Bench” in Section 11 is corrected to “King’s Bench.” Most notably, the prior Section 12 is repealed and replaced entirely. Under the new Section 12, all persons using water to produce power, or storing it for that purpose, must pay water rentals to the corporation, following detailed procedures laid out in the regulation. The annual rental amount is set to be the greater of two calculations: either a fixed quarterly rate of $0.25 per kilowatt of generating capacity—determined using the KVA rating and power factor on the generator’s specification plate—or the floating water power rental rate. This rental rate is indexed to the consumer price index and is updated yearly. For the 2025–2026 fiscal year, it is set at $6.69028 per megawatt hour.

The water power rental rate must be published each year by April 1 on the corporation’s website and may also be made public through other methods. Licensees are required to submit all necessary data to calculate their rental fees and to make quarterly payments, based on defined periods: January–March, April–June, July–September, and October–December, with the final payment for each year due by January 31. Furthermore, even if the construction of water power works is incomplete, rental charges begin on the date fixed in the license for the completion of construction. The initial payment covers the time from this fixed date to the end of that quarter. Delays or extensions do not alter this requirement.

To enforce compliance, the corporation is authorized to charge interest on unpaid water rentals at a monthly compound rate of 1.5%, equating to an annual rate of 19.56%. Any unpaid rentals and interest are considered debts owed to the corporation and may be recovered through legal means. Importantly, accepting partial payments or waiving defaults does not constitute a permanent waiver of any licensing conditions. The corporation also reserves the right to determine the output of a licensee’s water power works and may demand immediate access to relevant operational data. To ensure accurate monitoring, licensees must install approved recording wattmeters and maintain complete records for inspection.

These changes aim to modernize the province’s approach to regulating water usage for power generation by introducing a consistent and inflation-adjusted rental structure, enforcing stricter compliance mechanisms, and improving clarity and accountability in power generation operations.

Saskatchewan (25/2025) April 11, 2025
Disclaimer: Insights are for informational purposes only and do not reflect RRI’s official position or constitute legal opinion.