by Richard Gleeson
Northern News Services

NNSL (May 30/97) - Though not invited, the NWT Power Corporation figured prominently in Northland Utilities' Tuesday evening presentation to its customers.

Northland manager Al Brekke pointed out the Power Corp.'s rates for Yellowknife have risen 15.8 per cent since 1993, while Northland's portion of Yellowknifers' power bills has risen only two per cent.

NWT Power generates and supplies the electricity Northland distributes to the city. The cost of purchasing that power accounts for 77.3 per cent of the price of power in the city.

Power Corp. spokesman Bill Braden said rate increases reflect a $35-million investment in the system since 1993.

Braden reiterated the Power Corp. position on the potential buyout, saying "It's a situation where Northland, as a middle man, is no longer needed. That position can be provided for proficiently and effectively through Northern ownership."

On the request of the city, the Power Corp. prepared a preliminary study outlining the benefits of several owner-operator arrangements that could be created if the city bought the utility.

The study projected cost savings of 3.5 to 6.5 per cent if the city bought out Northland. The study was based on a purchase price of $15.7 million or less.

Northland did a recent audit of its assets, and maintains it's worth at least $22.5 million.

If the city purchased the utility, power rates would rise between 3.9 and 13.7 per cent.

"It would be a real feather in Leon Courneya's cap if he were to acquire the system," said Brekke, referring to the Power Corp. president.

NWT Power was not invited to Tuesday's meeting, said Brekke, because, "we really don't see the Power Corp as a party to the discussion at this time. The agreement is between us and the city."

Brekke also confirmed Northland was not going to be bought out without a fight, adding that he does not believe the agreement gives the city the right to buy the utility before the franchise agreement expires in 2001.

The agreement, said Brekke, provides for an arbitrator to settle any dispute over the price of the utility.

Brekke reiterated Northland's position that a city-owned utility will result in a 3.9-per-cent hike in power rates. If the city sells Northland to the Power Corp., rates will go up 13.7 per cent, maintained Brekke.

"If it ain't broke, don't fix it," said Brekke.