Terry Halifax
Northern News Services
Yellowknife (Jan 22/01) - Electricity costs are rising for communities that rely on diesel generators and there is no immediate end in sight.
Effective Dec. 8, 2000, consumers not served by hydro-electricity were charged 6.5 cents more for every kilowatt hour they used above 700 kilowatt hours a month.
An increase in the rate rider will add about $20 to the bills of consumers who use 1,000 kilowatt hours a month. The levy goes into the rate stabilization fund.
"The price of fuel galloped away on us," said Peter Watt, spokesperson for the Northwest Territories Power Corp.
The rate stabilization fund was established to smooth out peaks and valleys in fuel prices and ease the impact on customers, Watt said.
The objective is to maintain fund at a zero deficit. The rate rider is triggered when the fund hits a deficit of $2 million or more.
Last July, diesel powered communities were tagged with a 3.4 cent rate rider. Rising fuel prices pushed the deficit in the rate stabilization fund to $3.2 million and forced the rate rider to 9.9 cents per kilowatt hour.
The rate stabilization fund was introduced in 1992, when low water in the Snare Hydro System forced greater reliance on diesel power generation.
The Public Utilities Board ruled then that diesel and hydro customers across the NWT would pay a rate rider. Hydro and diesel communities have since agreed to have separate stabilization funds.
Watt noted that the recent review of power generation in the Northwest Territories suggested one hydro rate and a single rate for all 21 communities that rely on diesel generators.
NTPC is about to submit a new general rate application to the Public Utilities Board within the next six weeks. It is expected to reflect the continued high price for diesel.
