The City of Swift Current has successfully completed some negotiations with SaskPower.

The City has agreed to the terms in a memorandum of understanding, allowing them to proceed with acquiring an additional electrical franchise service area from SaskPower.

This new purchase and sale agreement between the City and SaskPower has a few key factors.

Presenting this matter to city council was the city's General Manager of Infrastructure and Operation, Mitch Minken.

"This exhibit transfers SaskPower's assets, contracts, and surface rights as defined in the disclosure schedules to the City of Swift Current," said Minken.

SaskPower has exclusive rights to supply, transmission, distribution and sale of electrical energy in Saskatchewan. However, they reserve the right to allow an individual to sell or distribute power with their consent. SaskPower has given this consent to the City of Swift Current and has expanded that consent to a greater area.

This new area will bring about 400 residents under the cities umbrella of service. In total, they are expected to generate about $800,000 annually. The land that these residents reside on was estimated to be worth $14.8 million in the purchase deal. The money generated by the customers will help to offset the cost of the deal for the City.

Under this new 2022 Electrical Supply Agreement, the Power Purchase Agreement 1986, amended in 1989, is no longer valid and will be terminated.

What that means for the City of Swift Current is that they will have more room on their grid, after acquiring a greater area from SaskPower. This enables the City to collect the fees from properties and establishments on that section of the grid.

This new agreement also closes a matter between the City and the Crown Corporation from 2005, wherein the city was suing a host of parties.

The City sued Saskatchewan, SaskPower Corporation and Crown Investments Corporation, alleging breach of contract, unlawful interference with economic interests, breach of fiduciary duty, abuse of public office, unjust enrichment and participation in discriminatory pricing contrary to the Competition Act relating to power rates.

The City has declined to comment on the exact nature of the closure of the case, but they are moving forward with SaskPower on this new agreement thanks in part to its closure.