Malcolm Gorrill
Northern News Services

Inuvik (July 13/01) - Northwest Territories Power Corp. public relations officer Peter Watt last week defended a rate hike application to the Public Utilities Board.

"No one wants to be paying more, but it is necessary," Watt said. "We are a business, we're not a government department."

Watt spoke July 3 during a meeting of the Chamber of Commerce of Inuvik, and noted that many costs have gone up since its last application in 1996.

He said the cost of diesel has risen 60 per cent, and insurance has tripled. He also noted inflation, salaries and wages, and travel costs.

Watt said that the corporation forecasts a revenue shortfall of $16.3 million for 2001-02 under current rates.

The current rates would generate $54.1 million, while revenue requirement would be $70.4 million. This is based on $41.4 million for operating and maintenance expenses, $10 million for depreciation, and $19 million for return on rate base.

Power rates are community-based. Inuvik Mayor Peter Clarkson said he expects this town's power bills will go up around 10 or 15 per cent if the rate increase is approved.

The town is an intervenor and can ask questions during the application process.

Power Corporation representatives Leon Cournoyea and Kell Sewell are to make a presentation to town council on what the application will mean for this community. Council next meets Aug. 8.