Jennifer McPhee
Northern News Services

Yellowknife (July 17/02) - Power rates could go up -- way up -- next month.

The NWT Power Corporation (NTPC) wants to increase Yellownife's rate by an estimated 18 per cent. For the average power user, that's about $20 extra each month.

Two-thirds of the increase is a temporary, 12-month shortfall rider to help cover a $5.1 million shortfall. The rest is an application to increase the current interim, "refundable" rate.

The Public Utilities Board (PUB) must still approve the increases .

In May 2001, the NTPC applied to increase rates. But because the approval process is lengthy and the NTPC had a $9.1 million shortfall, the public utilities board allowed the company to put a temporary increase in place.

This increase took effect last July and resulted in a fee increase of $10 per household per month. Refunds may be in order in some areas, depending on which NWT communities pay what when final rates are announced.

According to the NTPC, there is still a shortfall of $5.1 million in the 2001/2002 year. So last week, the company applied to tack on a shortfall rider -- a flat rate of two cents per kilowatt hour -- and increase the interim rate. That decision is expected next August. From May 2001 to February 2002, the NTPC consulted with representatives from various communities including Yellowknife to come up with a total amount the company needs to run its service. They reached a negotiated settlement in November and the following month the PUB approved the amount.

A similar phase will soon begin to determine who the revenue is collected from and what final rates will be. That decision is expected next year.

"Each community should participate in order to have a say about how rates are set," said NTPC chief financial officer Judy Goucher at a press conference last week.

The Public Utilities Board makes the final decision.

Goucher said the last time the company filed for a rate increase was in 1997-1998. Since that time, she said, diesel fuel costs almost doubled and insurance costs tripled.

But not everyone agrees with the increases. City of Yellowknife director of finance Robert Charpentier said during negotiations the city agreed on the corporation's total revenue requirement.

However, the city opposed the initial interim increase and will likely oppose the other increase and the shortfall rider.

He said the interim hikes are based on a charge distributed evenly across the territory and not on cost to provide service.

"That impact is a lot higher for Yellowknife," he said. "Some of the other communities have a higher cost for service."

As for final rate increases, the city will wait to see what the NTPC proposes during negotiations.