Nathan VanderKlippe
Northern News Services

Yellowknife (Sep 13/02) - The current $7-million territorial power support program will die if a flat rate for electricity is approved in the Northwest Territories.

But not so fast, says the GNWT, which is studying the program and contemplating a substantial rewrite of the way it works. Changes to the program could give it continued life even if a flat rate is approved.

"The intent of the program was to make power rates affordable for domestic and small commercial consumers in the NWT. That's still the policy objective that we're working towards," said Lew Voytilla, who manages the program under the GNWT's Financial Management Board.

The program, known by its acronym of TPSP, provides the first 700 kilowatts of electricity to homeowners in all NWT communities at Yellowknife-based prices.

Under a flat rate, there is no need for the program. But the GNWT is rethinking the TPSP. One of the options could be spreading out the $7 million moneybag to all users -- effectively reducing the price of the flat rate.

"If it's going to be spread around amongst all utility users, it's pretty hard to say that it's a bad thing," said Jerome Babyn, spokesman for Northland Utilities.

Another option is to simply scrap the program.

Voytilla will present Cabinet with an options paper later this year. He said the timing of a decision on a new TPSP would probably fall in line with the flat rate application.

The Public Utilities Board has promised a rate decision by early next year.

The power corporation is hoping the GNWT gets behind a new support program, as "that will mitigate the impact of levelized rates for all consumers across the NWT," said Peter Watt, spokesperson for the NWT power corporation, a publicly-owned territorial company.

"It's quite a major development," he added.