Nathna VanderKlippe
Northern News Services

Yellowknife (Feb 01/02) - Power users could get a break when a request to increase rates goes to a hearing later this month,

The chair of the NWT Public Utilities Board, which will make the decision on a NWT Power Corp. application, doesn't expect rates will go up.

"I doubt we're going to approve a higher rate," said NWTPUB Chairman John Hill.

NWTPC made a general rate application (GRA) in May of last year, requesting a 30 per cent increase in the price of electricity.

The increase was designed to cover losses the company was accruing from increased fuel and insurance costs. The company predicted it would end up $16.3 million in the hole without the increase.

Knowing that the approval process for a GRA is often lengthy, the company also applied for an interim rate increase. That would bring in some extra revenue before the final decision was made.

The interim hike was approved in July, and resulted in a fee increase of around $10 per household per month.

Last fall, a number of intervenors -- including the City of Yellowknife and the Yellowknife Chamber of Commerce -- went into negotiations with the power company, and whittled down the loss expectations by about $10 million over two years.

That translates into a decrease in the need to up power rates. In the final tally, it should mean that power costs shouldn't rise when a final decision on the GRA is made later this month.

Even so, some people are concerned about the cost of electricity in the NWT. Northland Utilities power bills contain a number of riders -- extra fees -- that considerably increase the price of electricity (see illustration on A3).

Others worry higher electricity prices will drive away potential growth.

"We consider the power increase to be a tax increase much like the road toll," said Yellowknife Chamber president Dave McPherson.

"We're the highest community in the country when it comes to utilities and taxes," he said.

"That's not a good thing to be. We feel that increases in fees for something like power are detrimental right now to the economic growth of the city and the North."