Power rates rising

Higher fuel costs blamed

Derek Neary
Northern News Services

Fort Simpson (May 25/01) - Power rates will soon be on the rise everywhere in the NWT except Fort Liard.

The NWT Power Corp. submitted a general rate application to the Public Utilities Board (PUB) earlier this month.

Fact: - Jean Marie River, Nahanni Butte and Wrigley are subject to 10 cent increase per kilowatt-hour - Fort Simpson faces an increase of 3.75 cents per kW-h - Thirteen of the 27 communities served by the Power Corp. stand to pay an additional 10 cents per kW-h, which is the where the Power Corp capped the increased rates.

An interim rate application, which would see monthly power bills rise $20-$25, on average, has also been tendered. The interim rates could take effect as soon as June, according to Judy Goucher, chief financial officer for the Power Corp.

Goucher said the Power Corp. needs to increase its revenue by close to $16 million by the end of next year to keep up with rising diesel prices, to upgrade equipment and to counter inflation.

"We know this isn't good news, but it's systemic to the industry," she said, adding that the last general rate application was filed in 1996. "Definitely, now is the time to conserve (energy)."

Customers who keep their usage below 700 kW-h won't notice a difference in their rates because of the territorial power support program, she said, adding that the 9.9 cent per kW-h fuel rider was removed at the end of March.

The general rate application (GRA), however, could possibly increase base power rates, affecting everybody. The GRA could take up to a year to be approved or revised by the PUB, which will hear from intervenors such as community governments. If the new general rate is less than the interim rate, customers will receive a rebate. If the new general rate is more than the interim rate, a rate rider will be added to customers' bills to collect the difference.

Stan Sanguez, chief in Jean Marie River, said he doesn't agree with the additional 10 cents per kW-h his community is facing because their rates are already among the highest in the NWT.

"We're not isolated any more. We have roads, and still they're hitting us with these costs," he said, adding that he's requesting a meeting with Power Corp. chair Gordon Stewart.

Duncan Canvin, president of the Fort Simpson Chamber of Commerce, contended that Fort Simpson is paying for lost energy from a electrical plant that is too inefficient.

"There's areas in the territories where it's certainly more attractive for businesses to go," Canvin said.

Fort Liard is the exception in the NWT. Customers there who exceed 700 kW-h will actually realize lower power rates due to high consumption, driven greatly by the demands of industry. Mayor Joanne Deneron was pleasantly surprised when she heard the news.

"I was quite shocked ... we're very, very fortunate. Thank God there's not only jobs created from all this development, but if it can spill off into lower rates for power, then all the better," she said.