N.W.T. power rates could go up 4.8% by June

A proposed interim power rate increase could add an extra $10 in winter and $6 in summer to the monthly power bill of the average N.W.T. resident.

After four years of power rate increases —the latest being a 6.2 per cent hike in April 2015 — the Northwest Territories Power Corporation (NTPC) is looking to raise power rates by 4.8 per cent.

The corporation has applied to the Public Utilities Board for permission for the interim rate increase and expects its request to be swiftly approved. The rate hike could be reflected on customers' bills by June.

The interim increase comes ahead of NTPC's General Rate Application, or GRA, which is set to be filed in May. The GRA affects power rates over the longer term.

In the upcoming GRA, the corporation estimates hiking rates over three years at 4.8 per cent in the first year, with a 4 per cent increase in the second year and 4 per cent in the third year.

NTPC spokesperson Pam Coulter cites a number of factors for the proposed hike, including inflation, a two per cent decline in power sales over the past two years, aging infrastructure and increased regulatory costs.

Low water levels, which have hampered the corporation's hydro production in recent years, are not currently an issue.

"We do recognize that it puts additional pressure on our residents and businesses. We still need to recover the costs of generating that power through rates," Coulter said.

"The biggest thing people can do is conserve energy and try to control their use."

Last fall, the territorial government handed the power corporation $29.7 million to cover the cost of extra diesel fuel used to supplement power generation in the North Slave region — an emergency measure in response to low water levels in the Snare hydro system.

By January this year, only a third of that emergency fund had been spent. However, Coulter says that money was specifically to cover costs directly related to low water levels and cannot be used to offset pressures from inflation or declining revenues. Instead, the remaining money will be returned to the territorial government.

The power corporation expects water levels in the hydro system to return to normal this summer.

Decrease still under consideration

According to Coulter, the Public Utilities Board is still evaluating a separate application from June last year to lower the price of power for Yellowknife residents and businesses by 2.6 per cent. Businesses in Behchoko and Dettah would also benefit.

The planned decrease does not mean NTPC wants to bring in less money: instead, the application sought to transfer some of the current Yellowknife cost from residents to government sources.

Any decrease would be applied to the rate NTPC charges distributor Northland Utilities which, in turn, said savings would be passed on to the customer.

If the board approves all of the outstanding applications, the corporation says Yellowknife residents would find that decrease slightly tempers its latest proposed increases.

NTPC's last General Rate Application was in 2012 and resulted in a 28.4 per cent increase spread over four years.