Here's an idea for heating and lighting your house this winter: Instead of paying SaskEnergy and SaskPower, just take the money out of your wallet and burn it directly! Just kidding of course. But on the heels of SaskEnergy's proposed 23% hike on heating bills, and SaskPower's proposed 5.2% increase on power bills (and let's not forget SaskTel's rate hike last March), people are concerned about what the future holds for utility taxes.

Calling utility bills "utility taxes" is to remind readers that our utility companies are Crown Corporations owned by the province, and it is the government that ultimately calls the shots and benefits from the substantial profits the Crowns rake in. But there is an old saying that while bad news is an orphan, good news has a thousand fathers. When utility rates rise for any reason, politicians pretend that all the decisions are being made on the other side of the world, when they are really being made by cabinet ministers, bureaucrats, and government appointees in Regina.

Right now the government and its Crown appendages have decided to (a) raise utility rates, and (b) soften the blow on some Saskatchewan citizens by doling out energy rebate money. But what are the government's other options for dealing with potential utility rate increases

First of all, the Crown's should stop fixating on the revenue side of the ledger and look at costs. At least some of these rate hikes could be offset if SaskEnergy and SaskPower achieved some efficiencies in their own operations. SaskPower's operating, maintenance, and administration (OMA) expenses alone have increased by 45% between 1996 and 1999, including a $45 million jump from 1998 to 1999.

Secondly, let's consider the profit picture. SaskPower made a profit of $114 million in 1999 and $140 million in 1998, with fully half of that going into provincial government coffers. Next year, a similar profit is anticipated for the government. On top of that, the high natural gas prices that are blamed for utility rate increases are also greatly benefiting this province via royalties and taxes on gas exploration and production. How ironic that the profits that would flow from utility rate hikes will go to the very same government that plans to dribble out energy rebates with an eyedropper!

The point is this: In these tough times for consumers, why can't the government forego some of its profit and give the Crown utilities some room to keep rates low It's an option.

Another option is soften the blow of rate increases by reducing taxes. Instead, the government is monkeying-around with an energy rebate scheme that will not come close to offsetting the utility increases. In addition, the cut-off line that divides rebate recipients from everyone else is largely arbitrary.

The energy rebate is a stop-gap measure that does little to address the real income problems of Saskatchewan residents. A better, fairer, more permanent solution would be to put more money in our pockets by increasing the amount of income we could keep tax-free by increasing the Basic Personal Exemption. This would help low-income people the most, but all taxpayers would benefit, and the whole Saskatchewan economy would benefit from this necessary move towards lower income taxes.

Let's not forget that the government's profit from utility rates and gas prices is YOUR profit as a citizen of Saskatchewan. In this cold and dark prairie winter it's time for the politicians to share the wealth.