Jeff Colbourne
Northern News Services

NNSL (Aug 12/98) - For the second time in four years, the NWT Power Corp is experiencing low water levels at their Snare River hydro dam.

In 1994, the last low water year, the corporation was forced to run its costly diesel generators during the summer, hiking power rates for residents.

Dan Roberts, director of central operations, said their diesel generators are going full-tilt now to conserve water for winter. But residents need not worry at this point about rate increases.

"In 1994-95 we increased rates. As a result of that we introduced a rates stabilization fund. Over the last few years when we averaged a high water year we have been putting some money in the bank for low water years," said Roberts.

At the moment no increases are planned but there's only so much money -- approximately $1 million -- in reserve now, said Roberts, and they don't know how long the low water will last.

The Power Corp's profits are regulated by the Public Utilities Board. If the corporation generates more money from hydro than it budgeted for, that excess goes into the rate stabilization fund to pay for diesel fuel during a low water year.

If the company experiences another low water year next year that fund would be used up.

The Snare River reservoir is about five times the size of Prelude Lake. The Power Corp hopes to bring water levels within five feet of full to help get them through peak season in winter.

It costs the Power Corp about two cents per kilowatt hour to produce power with water, and 10 cents with diesel.