Hay River, N.W.T. gets new power distribution company after eight years

Hay River is getting a new power distribution company after the Northwest Territories Public Utilities Board approved the transfer from Northland Utilities to the Northwest Territories Power Corporation (NTPC) last month.

Northland Utilities, which is jointly owned by Alberta energy company ATCO and Denedeh Investments, has held a power franchise agreement with Hay River for decades. The company buys power from NTPC and distributes and sells it to residents of the town.

The town made the decision to switch in 2016 after NTPC promised lower rates for the community, initially claiming that rates would drop by 20 percent.

Since then, the case has been caught up in litigation after Northland Utilities objected to the transfer, citing that it was not in the best interest of the public, and that power rates would significantly increase for its remaining customers in other communities. 

But on March 26, the four-person N.W.T. Public Utilities Board found that the no harm standard had been met, meaning that there would be no harm to any group of customers of either utility as a result of the transaction, and approval of the sale was in the best interest of the public.

The N.W.T. Public Utilities Board gave the closing date of December 31, 2024 for the assets purchase and sale transaction, with the possibility of extra time to avoid higher rates that could occur from the transaction.

Northland and NTPC have also been directed to file General Rate Applications before the transaction date.

Glenn Smith is the senior administrative officer with the town of Hay River. In an emailed statement, he said the town is pleased that the N.W.T. Public Utilities Board has ruled that the purchase and sale of the franchise assets are in the public interest.  

"The Town continues to expect electricity related cost savings for residents and businesses that collectively reduce cost of living pressures and increase the strength of the economy," Smith said.

"There is satisfaction in reaching this milestone and the Town looks forward to the completion of the remaining activities."

In an emailed statement, Northland Utilities said they are currently reviewing the decision regarding the Hay River franchise and have no comment at this time, but they remain committed to collaborating with all stakeholders to find sustainable energy solutions for the territory.