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SOMBA K'E/YELLOWKNIFE - While the territorial government launches a discussion paper on electricity regulations and rates, businesses are struggling to keep up.

Bob McLeod will seek input from communities, aboriginal governments, businesses, and NWT residents. -

Industry, Tourism, and Investment Minister Bob McLeod, together with Premier Floyd Roland and Michael Miltenberger, minister of Environment and Natural Resources, announced the process will begin in January 2009.

"This dialogue is necessary to ensure we have explored all opportunities and avenues to reduce the cost of living, and specifically electricity, to NWT residents and businesses," said McLeod.

The industry minister said he would seek input from communities, aboriginal governments, businesses, and NWT residents.

McLeod will not have to go far to hear public opinion on this issue. Community leaders and business owners hardest hit by the Nov. 1 rate hike are already speaking out.

Wendy Groat of Fort Simpson said it is difficult to keep a business afloat when your power bills are as high as $1,200. She and husband Kirby are owners and operators of Deh Cho Suites in Fort Simpson. Her bill has averaged about $800, but one bill in 2008 was more than $1,200. These numbers are high despite the fact they do not use electric heat and they have taken energy-saving measures.

"We have a completely energy-efficient boiler, energy-efficient bulbs, we have gone with as high an insulation package as we can, and we've gone with triple glazed windows," said Groat.

She said she is outraged that prices are again going up 13 cents in Fort Simpson for every kilowatt hour, despite the recent dramatic drop in oil prices.

"Diesel is going down to less that $50 a barrel and we're still paying over 60 cents per kilowatt hour," said Groat. "I can't imagine what smaller settlements are paying."

Chief Isadore Simon in Jean Marie River doesn't have to imagine it because he is living it. Like Groat, he and his wife are also in the hospitality industry. They run a small bed and breakfast in the tiny Deh Cho community.

Jean Marie River saw the second highest rate hike of all the communities on Nov 1. They are now paying an extra 38 cents per kilowatt hour.

"At my home it has gone up but in my commercial building we've seen it jump quite a bit," he said.

Simon has a sense of what is happening with power rates. For 19 years he worked for NTPC in Jean Marie River, managing the generating station. "I know exactly how much diesel it burns and they're making it sound like we're burning as much diesel as Fort Simpson or Fort Smith," he said.

Like Groat, Simon is concerned about locked prices. Jean Marie River has an all-weather road and the power station gets monthly fuel deliveries. He said he would be happy with variable rates based on the price of diesel.

Simon said the community has installed solar panels on the community centre, but these don't make a difference for the average homeowner.

Groat said she is also thinking about solar power. She has looked into the cost but has found that any system she purchases will have to track to follow the sun's path.

She and her husband are still considering going solar since conservation seems to make no difference. "Power here is just absolutely out of control and I don't know how people are going to be able to pay their power bills," she said.