NTPC applies for rate increase, citing high diesel costs

The Northwest Territories Power Corp. (NTPC) is looking to raise power rates, saying it's in response to the higher cost of diesel.

In a news release on Friday, the NTPC said it has applied to the territory's Public Utilities Board, to increase a fuel rider for customers, from the current 0.9 cents per kWh to five cents per kWh. 

That would mean an additional $32 on a monthly residential bill for 750 kWh. 

The company says the current rider was set during its most recent General Rate Application and that diesel prices have risen higher than expected since then. 

In a statement, NTPC president Cory Strang blamed "supply shortages created by war in the Ukraine and refining constraints."

Friday's news release states that NTPC's fuel costs have risen by an average of 39 per cent in the last two years.

"Short-term debt has been used to cover the additional costs incurred due to high fuel costs, but this is not sustainable over the long-term," it reads.

Power rates vary across the N.W.T. based on the region and whether those regions are powered by hydro or diesel generators.     

The increase in the fuel rider for customers needs to be approved by the Public Utilities Board before it can go forward. If it is, NTPC expects it to be in effect "until fuel prices decline or when prices are updated in the next General Rate Application." 

In a written statement, Caroline Wawzonek, the territory's minister responsible for NTPC, called the application to increase the fuel ride "an unfortunate reality."

Wawzonek also said that the application "highlighted" the need to move toward more renewable power generation, and away from reliance on diesel generators.