Expect higher store prices if power rate hike goes ahead, say N.W.T. business owners

The owner of a grocery store in Norman Wells, N.W.T., says an increased power bill would likely lead to higher prices for customers. 

Joshua Earls is the owner of Rampart Rentals, one of the two grocery stores in Norman Wells. He says one of the major expenses his store incurs is power for the freezers and fridges. 

"A lot of our cooler items and freezer items are gonna get impacted by that, we're gonna have to raise costs just to help cover these power costs," he said. "Let alone all the lights and everything else that we have."

The Northwest Territories Power Corporation (NTPC) has applied for a rate increase of nearly 18 per cent across the entire territory. This comes soon after a seven per cent increase that was implemented in the summer, meaning customers would see a 25 per cent increase on their bills. 

In Norman Wells, residents are already dealing with skyrocketing fuel costs that have prompted the town to declare a state of emergency. Higher power rates would just be another economic hardship for the community. 

"It's starting to get a little scary, no doubt," Earls said.

"I mean, it seems like we're getting hit by the heating and the power now at the same time, and the lack of transportation to get goods up here."  

The NTPC says the proposed rate hike comes as a result of elements that are out of its control, such as extreme low water levels disrupting hydro power, increasing diesel prices, inflation, and the costs of large capital projects like the overhaul of the Taltson hydro facility.

The potential rate hike also has businesses in Yellowknife fearful about what will happen to their customer base when they are forced to raise prices. 

"It's a huge hike, and it just seems like these hikes never end," said Adrian Bell, president of the Yellowknife Chamber of Commerce. 

"Is the expectation simply that businesses pass this on forever to consumers?"

Bell said the territory is losing residents and he believes the trend will continue if goods becoming too costly, and that in turn would lead to even higher bills for power as there would be less of a customer base.  

"The territory is shrinking, this just seems to be part of a pattern," he said.

"Costs are going up and up, no end in sight, and people have to ask themselves, can they continue to afford living here? For a lot of people, the answer is no."

Bell described the situation facing the territory and its small businesses as "death by a thousand cuts."

He said larger businesses can easily pass on higher costs to consumers by raising prices, but this is more difficult for smaller businesses.

"It's the small mom-and-pops that are really going to suffer, and it seems like it's going to be never-ending," he said. 

Bell said the business community isn't an expert on power generation, but he said business owners will advocate for other solutions to be found as the rate hike will have a negative impact. 

Bell said one solution is to grow the territory's population to get more customers and reduce power rates, but this doesn't appear to be happening. 

The NTPC's proposed rate hike isn't final as the territory's Public Utilities Board will make the final decision on whether it goes forward or not. The board is expected to make a decision by the end of the calendar year.