Fort Simpson (Aug 15/03) - Power rates in several Deh Cho communities are about to climb significantly.

The proposed increases, currently before the Public Utilities Board for review, could take effect as early as Sept. 1.

The proposed commercial and government rate in Jean Marie River is $1.23 kW/h.

By comparison, the equivalent proposed rate for Fort Smith is 8.35 cents per kW/h.

In addition, a 25 cent rate rider, to collect outstanding Power Corp. revenues from 2002-03, may push the commercial rate to $1.48 kW/h in Jean Marie River. The rate rider will vary by community. It will remain in place for a few months in some communities, almost a full year in others, said Peter Watt, public relations officer for the Power Corporation.

Watt said the new power rates reflect the cost of doing business in each community. He noted that a territorial subsidy will continue making rates more affordable below 700 kw/H per month. However, the subsidized rate also stands to increase -- only a "minor adjustment," according to Watt -- and the future of the subsidy remains at the discretion of the legislative assembly.

Hindering business

Fred Norwegian, chief of Jean Marie River, said the new rates will make starting a small business prohibitive in his community. He noted that power for Jean Marie River's burgeoning sawmill is being supplied through the community's own generator. Households and the band office won't be spared, however.

Watt conceded that the rates could deter businesses in Jean Marie River. But he suggested that the tiny customer base (population 50) is responsible for the high cost. "We still need to have the infrastructure in place -- the plant and the distribution system -- so if you had more customers using that system then the rate would come down," Watt explained.

Tim Lennie, chief of the Pehdzeh Ki First Nation in Wrigley, said he's not pleased with the rate increase but he's resigned to the fact, at least in the short term.

"It's getting ridiculous," said Lennie.

"I know definitely we're going to have to start looking at alternative power sources... the possibilities are enormous."

Lennie listed river turbines, a windmill on nearby Cap Mountain or tapping into natural gas from a Mackenzie Valley pipeline as possible options.

Fort Liard is the only Deh Cho community that may realize a slight savings through the new Power Corp. rates.

Rate shock

Current residential rates (in cents per kW/h)

Jean Marie River -- 73.55
Wrigley -- 67.86
Nahanni Butte -- 83.24
Fort Liard -- 38.34
Fort Simpson -- 33.56

Proposed residential rates

Jean Marie River -- 84.58 (plus a 25.39 cent rate rider)
Wrigley -- 78.04 (plus a 12.44 cent rate rider)
Nahanni Butte -- 95.73 (no rate rider)
Fort Liard -- 40.04 (minus a 1.93 cent rate rider)
Fort Simpson -- 36.80 (plus a 0.69 cent rate rider)

Current commercial rates (in cents per kW/h)

Jean Marie River -- 107.15
Wrigley -- 85.37
Nahanni Butte -- 113.22
Fort Liard -- 34.20
Fort Simpson -- 28.95

Proposed commercial rates

Jean Marie River -- 123.22 (plus a 25.39 cent rate rider)
Wrigley -- 84.89 (plus a 12.44 cent rate rider)
Nahanni Butte -- 130.20
Fort Liard -- 33.64 (minus a 1.93 cent rate rider)
Fort Simpson -- 29.91 (plus a 0.069 cent rate rider)