The primary consumer of coal in Saskatchewan is the domestic electricity sector, due to the fact that there are extensive coal resources. Saskatchewan, along with the provinces of Alberta and British Columbia account for over 85 percent of total coal production in Canada. Saskatchewan currently is the third largest producer of coal in Canada, accounting for approximately 14 to 17 per cent of the total coal production. Today, about 15 percent of Canada's electricity is generated from coal. Most of the coal produced in the province is used by the province in three thermal-electric generating stations operated by Saskatchewan Power corporation.
Some coal is sold in Saskatchewan for domestic heating.
Utilities and industrial customers in Manitoba and Ontario use the remainder of Saskatchewan coal. Most of this is exported via the railway. Coal consumption for electrical generation has increased over the years, particularly since the Shand power plant became operational in 1992. Economic Impact of the Coal Industry for Saskatchewan As stated, most of the coal mined here is sold directly to mine site thermal-electric generating stations. This is largely due to transportation costs, current low prices of competing fuels and large resources of similar costs immediately south of the Saskatchewan border.