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Yellowknife, Hay River move against proposed NTPC rate hike

Minister says proposed electrical increase would have been close to 45 per cent if not for GNWT intervention to date
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Yellowknife Mayor Rebecca Alty, pictured, and Hay River Mayor Kandis Jameson are pushing back after a proposed 24.8 per cent rate hike from the Northwest Territories Power Corporation. NNSL file photo

The City of Yellowknife and Town of Hay River are officially attempting to intervene as the Northwest Territories Power Corporation (NTPC) pursues a power rate increase of 24.8 per cent for the territory. 

On Oct. 31, NTPC filed a general rate application with the Public Utilities Board (PUB) seeking a rate increase of 17.7 per cent, following a 7.1 per cent interim rate increase that was already approved by the PUB in July. 

In a Nov. 15 joint news release, Yellowknife Mayor Rebecca Alty and Hay River Mayor Kandis Jameson both committed to "participate in the proceedings to ensure that rates remain as low as possible."

“In the current reality of rising costs, ensuring the delivery of reliable and sustainable power to residents and businesses at the lowest possible rate is of utmost importance,” Alty said. 

Jameson agreed, pledging to honour her municipal government's "commitment to ensuring the most cost effective, reliable and safe electrical services are being provided to its residents and businesses.”

NTPC's proposed rate increase aims to ensure that the revenue it collects is sufficient to cover the cost of providing power to its customers now and in the future, in the face of factors such as extremely low water on the Snare River which affects hydro power, high fuel prices, large capital projects like the Taltson hydroelectric overhaul, inflation on goods and services required to maintain normal operations and flat electricity sales.

"We recognize that many customers are experiencing economic challenges due to inflation that has caused significant increases in the cost of food, housing, energy and other goods and services," NTPC president and CEO Cory Strang said. "NTPC has made every effort to keep rates as low as possible for customers, but we are facing major issues, such as extreme low water and high diesel prices that are beyond our control. Funding support from the GNWT has helped offset these challenges, but NTPC is still facing substantial increases in the cost to deliver power to customers."

The power corporation is proposing that customers receive the same percentage increase in all rate zones, however, it will be PUB's job to determine whether the proposed rate changes are reasonable.

As for the GNWT's stance, Infrastructure Minister Caroline Wawzonek issued a lengthy public statement following NTPC's general rate application. 

“The Government of the Northwest Territories (GNWT) recognizes the financial pressures many residents are experiencing as the cost of living continues to rise," she said. "We remain committed to finding ways to ease these burdens and support Northerners. NTPC’s general rate application reflects unavoidable challenges, such as extreme low water levels and volatile fuel prices, that are driving up the cost of generating and delivering electricity. We understand the impact these increases may have on households and businesses, and we are working closely with NTPC to keep rates as manageable as possible.

“The GNWT has already taken significant steps to protect residents from steeper increases. Over the past two years, we have provided $45.2 million in low-water relief and made strategic investments in renewable energy to help stabilize costs," Wawzonek added. "Without these contributions, the proposed rate increase would have approached 45 per cent. As part of our ongoing efforts, we are actively exploring options to provide additional financial support to further mitigate the impact of these proposed rate increases.

“Looking ahead, we are developing a new energy strategy to improve energy security, affordability and sustainability, with a focus on achieving net-zero emissions by 2050. This strategy will involve close collaboration with Indigenous partners, the private sector and NTPC to expand local energy production, attract new industrial customers, and stabilize rates over the long-term. We remain committed to supporting residents through programs like the Territorial Power Support Program and to identifying further solutions that reduce the cost of living and ensure reliable, affordable energy for all Northerners,” the minister concluded.

According to the website energyhub.org, the NWT already had the highest power rates in Canada, as of September 2023, at 41 cents per kilowatt hour. Nunavut was next at 35.4 cents per kWh. Alberta stood at 25.8 cents per kWh.



About the Author: Tom Taylor

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