A projected five percent rate increase by SaskPower has been reconsidered, and lowered, down to 3.5 percent.

The original increase would have seen the average customer pay about nine dollars more for power per month.

Heather Johnson is a spokesperson for SaskPower.

She talks about the Rate Review Panel's decision to reduce the increase.

"Their independent assessment was essentially that, while SaskPower most definitely does need to increase rates to meet it's infrastructure obligations, of course, taking consideration of customer needs as well, they opted to reduce the request."

Johnson describes what customers can expect to see on their bills next year.

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

Johnson explains how the Rate Review Panel makes its decision.

"They go through a number of steps in the rate review process. They do some consolation with customers at various levels, they look at financial documents and that sort of thing."

The increase will begin January 1st.