Customers with SaskPower will be facing a slight increase in their bills beginning in March.

The Government of Saskatchewan has agreed to a 3.5 per cent increase in rates for the year.

Spokesman Jonathan Tremblay says that most of the extra money will be going towards capital spending.

"It's really about the power grid and how much we have to grow it right now."

He says that with continually increasing population, that also increases the services they need to provide.

"We have some important challenges that have been going on for a few years. We have unprecedented population growth and economic growth, so that's why we are seeing new peak records every summer."

SaskPower was initially seeking a five per cent rise in rates.

The rate hike will see the average bill add around four dollars a month.