Darrell Greer
Northern News Services

NNSL (Sep 28/98) - The NWT Power Corp. is exploring every option in delivering safe and reliable power to smaller communities, but plant upgrades and replacements don't come cheap, says Bill Braden, director of corporate development for the NWT Power Corp.

Braden made the comment in response to reports out of Clyde River indicating power rates there could rise as much as 40 to 50 per cent during the next two years.

Braden says Clyde River's power plant needs to be upgraded or replaced.

"Even in a small community like Clyde River, the kind of upgrade we're looking at would be a few millions of dollars," says Braden.

"Now we come to the issue of how can a small community afford to pay for what might be as much as a $3 or $4 million power plant?"

Braden says as a regulated utility, the power corporation can't make decisions arbitrarily.

He says its rate structure has to go through a Public Utilities Board process, during which the public can challenge any proposed rate changes.

"We've got to work with the customers so they understand what's going on and have a role in making decisions to plan their future power supply."

Braden says Clyde River received a letter earlier this year indicating the condition of its plant is deteriorating.

He says there was also a meeting held with NWT Power Corp. regional managers in the hamlet last month.

"We're still looking at options. We could end up refurbishing the existing plant to a lesser degree. No final decision has been made as yet."

All domestic power rates in the NWT are subsidized by the GNWT for the first 700 kilowatt hours per month, but municipal governments must pay the cost full amount on power bills.

Braden says there's no question a rate hike would be a financial hit on local levels of government.

"Since these communities have no tax base, there's very little they can do to recover additional expenses.

"So, I can see where a hamlet would have a big concern.

"This is a situation every community in the NWT will eventually have to deal with."

When reached by News/North, a spokesperson for Clyde River said the hamlet needs more information on the situation before issuing an official comment.