Bill Boyd, the minister responsible for SaskPower, said Watson submitted his resignation on the weekend and it was accepted.
The smart meter review released Monday faulted the Crown corporation for not doing a better job looking after customer safety. During the summer, there were eight smart meter fires.
Watson was appointed to the top job at the provincially owned power utility in 2010 after six years as CEO at SaskTel, the government's phone company.
He will not receive severance, said Bill Boyd, the minister responsible for SaskPower.
SaskPower is the province's biggest Crown corporation, with assets of $7 billion and revenues in 2012 of $1.8 billion.