Mike W. Bryant
Northern News Services
Yellowknife (May 14/01) - The community of Fort Liard is the only place in the NWT that will not face power rate increases this year.
Northwest Territories Power applied for rate increases to the Public Utilities Board, May 9.
The company cited falling revenue and rising world oil prices as the main reasons for seeking rate hikes.
"There have been a lot of changes in our business environment since the last time we filed a (general rate application) with the Public Utilities Board," said Judy Goucher, Chief Financial Officer for NWT Power, in a statement issued last Thursday.
"Take the cost of diesel fuel for example. Most of the communities we serve in the NWT use power generated by diesel engines. The cost of diesel has increased by over 60-per cent, sending our costs soaring.
NWT Power is predicting a deficit of more than $16 million dollars for the coming year alone. The company is seeking a 30-per cent increase in revenues.
While the company must wait out negotiations with, the utility board, and intervenors from across the territory, it hopes an additional application for a interim rate increase will be accepted immediately.
According to Goucher, most households in the NWT can expect rate increases of $20-25 dollars a month.
Fort Liard, on the other hand, will see rates drop by almost four cents per kilowatt.
"They're selling more power, so their costs aren't going up as much as the revenue generated," said John McKee, senior administrative officer for the hamlet.
McKee said the company is reducing power rates in the community because of the mini construction boom that is currently taking place.
More customers means lower rates, and lower costs for the utility.
However, the picture is not as rosy elsewhere across the territory where interim rates are going up by as much as 10 cents a kilowatt.
Even though power rates are subsidized to the Yellowknife rate, currently at 15.76 per kilowatt, many communities are treating any increase with scepticism.
"They promised us a 200 kilowatt generator," said Colum McCready, Senior Administrative Officer in Tsiigehtchic.
Like Fort Liard, McCready says the community is growing, and is expecting another 80 residents to move into town by fall.
He says the community is angry because NWT Power has not been meeting the increasing demand for electricity.
"Last winter we were having blackouts almost twice a night," Mcready said.
"They say they're saving money, but we have to call the engineer every time the power goes out. It's causing a grave inconvenience."
