Northland Utilities: Hay River power price is fair

Northland Utilities says it's charging a fair price for power in Hay River.

Last week, the town announced it will not be renewing the franchise agreement it's had with the company since 2001, with Mayor Andrew Cassidy citing high costs as the main reason.

Northland has been selling electricity to homes and businesses in the town for more than 60 years. It buys the power from the Northwest Territories Power Corporation.

Ross Stanley, who’s with Northland, says it's no surprise that the town is taking a closer look at the cost of power: that’s exactly what the town said it would do the last time it renewed the agreement in 2011.

“The mayor has said before that this is cost-based and that's clear,”They also stated that they're going to take a closer look next time. They're doing exactly what they said. And they should for the ratepayers of Hay River."

Stanley says the price is correct for the service the town expects.

He says their rate is looked at very closely by the town and the NWT Public Utilities Board.

Northland Utilities owns all of the electrical system infrastructure in Hay River, including power lines and poles and a backup diesel plant. The plant runs for a couple of weeks each year.

The existing franchise agreement expires in November 2016.