Iqaluit (May 26/03) - Nunavut's Utility Rate Review Committee recommended a 7.5 cent per kilowatt hour rate rider be added to the territory's power bills.

That's 2.5 cents less than the Nunavut Power Corporation asked for, but it's still significant for the company's customers.

NPC said the rider will be used to cover as much as $15 million it needs to meet rising fuel costs.

Energy Minister Ed Picco said a final decision on the rider is expected within the next month.

Although Nunavummiut have generally accepted the need for a rate increase, they are concerned with the lack of information provided by NPC, according to Steve Cook, president of Iqaluit's Chamber of Commerce.

"The issues are serious. Let's get everything on top of the table," said Cook, who is also general manager of Nunastar Properties.

Nunavut's Fuel Stabilization Fund is supposed to add a rate rider when it reaches a deficit of $2 million.

Nunavut Power Corporation has provided no information on why it needs as much as $15 million to cover spending on fuel.

For the company Cook manages, the 7.5 cent rider would translate to more than $185,000 in increases in one year. Cook said an increase like that is too much, too fast.

"As a business owner, I would prefer to have any rate increase advertised over a longer period of time to lessen the negative impact of it," explained Cook.

A Nunavut wide concern

Kugaaruk's senior administrative officer, Ellwood Johnston, said the hamlet is not sure what it will do if the rider is put in place.

"There's a lot of hamlets in a deficit position.

"We're trying to climb back up and now we might just have to turn out the lights," said Johnston.

He said a 7.5 cent rider will increase the hamlet's costs by about 12 per cent..

Ruth Palmer, the president of Kugluktuk's Chamber of Commerce, said an emergency meeting will be held in community on Tuesday.

"I've spoken to several businesses already. Everyone is extremely concerned," she explained.

Iqaluit power

per kilowatt hour

Rate without subsidy: 31.58 cents per kilowatt hour (kwh).

Subsidy: 16.36 cents. subsidy for the first 700 kwh.

Current total: 15.22 cents per kwh for the first 700 kwh; 31.58 cents per kwh after that.

Rider: 7.5 cents per kwh.

Total: 22.72 cents per kwh for the first 700 kwh; 39.08 cents per kwh after that.