Derek Neary
Northern News Services

Fort Simpson (Sep 25/02) - Power rates are about to change across the NWT, but it's now a matter of who will be affected the most.

Peter Watt, public relations officer for the NWT Power Corp. - Derek Neary/NNSL photo Did you know... With an equalized rate structure, all residential customers will pay 23.21 cents per kw/h. Without it, here's the difference in power rates each Deh Cho community can expect next year (all figures in cents per kW/h): Current Future Fort Liard 38.34 33.84 Fort Simpson 33.56 31.16 JMR 59.86 138.77 Nahanni Butte 66.81 117.77 Wrigley 56.85 70.66

Peter Watt, public relations officer for the Northwest Territories Power Corporation, promoted a proposed "levelized rate" to Deh Cho and North Slave community representatives in Fort Simpson last Wednesday.

Under that proposal, all NWT residential customers would pay 23.21 cents per kilowatt hour while businesses and government would be charged 21.01 cents per kW/h.

If the Public Utilities Board doesn't approve of that plan -- it's expected to make its decision in March or April of next year -- then community-based rates will continue. That would mean communities like Jean Marie River and Nahanni Butte are going to pay a heavy price.

Jean Marie River's rates will more than double to $1.38 per kW/h without a single NWT-wide rate. "I think that's way too much," said Fred Norwegian, band manager in Jean Marie River. "It's a bit of a concern to me."

Under the existing community-based rate, the 32 customers in Jean Marie River have to bear the cost of generating power and replacing equipment. Using last January's bill, Watt showed that the Jean Marie River band office would pay $4,276 under the increased community-based rate. But under the equalized rate of 21.01 cents per kW/h, the bill would only amount to $635, a difference of $3,641.

With the proposed equalized rate, communities served by hydro-electric power such as Yellowknife, Hay River and Fort Smith -- which currently pay as little as 10 cents per kW/h -- will realize the greatest increase in costs. Yellowknife, with its thousands of customers, will pay approximately eight cents per kW/h more, according to Watt.

Referring to the proposed equalized rate, Fort Simpson Deputy Mayor Bob Hanna said, "At least this would put every community on a level playing field when it comes to attracting business."

The unknown variable is whether the government will continue its Territorial Power Subsidy Program, or how the GNWT may restructure the subsidy if the equalized rate is approved by the Public Utilities Board.

Currently, residential customers in most communities pay only 17.54 cents per kW/h for the first 700 kW/h while the government picks up the remainder. Customers will pay substantially more if the GNWT eliminates the subsidy, which cost the government nearly $6 million last year. The subsidy cost is projected to rise to $7 million with the increase in power rates.