Inuvik (Aug 15/03) - Utility customers in Inuvik will soon see some changes to upcoming bills, with gas rates dropping and electricity rates climbing.

The good news is, Inuvik Gas has announced a rate reduction, but the bad news is, the Northwest Territories Power Corporation (NTPC) will be raising their rates.

The Public Utilities Board is in the final stages of approving a rate application that will see rates rise an average of 15 per cent across the Beaufort Delta.

The new rates are the fallout from a proposal that would have seen a levelized rate throughout the territory.

In 2001, the GNWT, NTPC and their board of directors agreed to a proposed single rate structure, rather than the current community-based rates. But before the idea came to fruition, the plan was quashed by the territorial government and when the board refused to drop the proposal, they were subsequently fired by the government.

Last Nov. 12, the Northwest Territories Power Corporation submitted its Phase II General Rate Application to the NWT Public Utilities Board (PUB). NTPC was seeking approval for:

- proposed retail and wholesale rates for 2001/02 and 2002/03 under a community-based approach.

- revised terms and conditions of service.

Several remote communities filed intervenor status, disputing the proposed rate hikes, including a consortium of Beaufort Delta communities called the Association of Municipalities for Fair Power Rates.

The association represented some 2,862 residential customers and 746 general service customers. They argued that the proposed rates had a disproportionate adverse effect on Northern and remote communities.

The rate increases proposed by NTPC, as an average across the Beaufort Delta, calculates to 71.63 cents per kilowatt hour -- a 350 per cent higher rate that the proposed rate for Yellowknife.

While the association felt it was futile to argue against community-based rates in the wake of the GNWT's firing of the board, they instead argued that some changes could be made to ease the burden on diesel power generated communities.

The association argued that the administrative costs associated with 200 different power rates for 41,000 customers was considerable and suggested more cost efficient rate structures.

On June 26, the PUB released it's decision, but before granting the proposed increased community rates, the board is seeking additional information from the corporation.

Peter Watt, public relations officer for NTPC, said the company has completed the request and await the final approval to the new rates.

"One of the things they've asked the corporation to file were proposed rates by community," Watt said.

The board asked that the proposed rates be filed within 30 days and Watt said they have complied with that request and they expect to impose the new rates Sept. 1.

"We would like to implement the new rates by the first of September, but if we cannot achieve that, then we'll go for the first of October," he said.

The Inuvik rates will be 38.72 cents per kilowatt hour (kwh), up from the current rate of 38.13 per kwh.

In addition to the rate, Inuvik is currently paying a 6.32 cent rate rider, to recover the cost of a fuel recovery program, but Watt said that rider should be paid off this year.

"We anticipate most of the riders will be off 'round about Christmas time," Watt said.

Gas drops

On Aug. 1, the Public Utilities Board received notice from Inuvik Natural Gas Ltd. that effective Oct. 1, the price of gas will drop from $17.50 per gigajoule (gj) to $14.70 per gj.

Board secretary Louise Larocque said the board hasn't made a decision on the formal complaint filed by the Town of Inuvik on the previous rate increase.

On May 1, the price of gas in Inuvik rose 45 per cent to correspond with the rack price of P-50 heating fuel in Edmonton.

"(The PUB) are hoping to get the decision out by the end of August," Larocque said. Should the board rule against the May increase, gas customers will receive a refund for the disputed price increase.

As of Aug. 1, the price of natural gas was increased to the NTPC by 2.25 per cent, but Watt said the end result is a net increase of about one per cent and would have no effect on Inuvik customers.

Inuvik Natural Gas Ltd. had not returned phone calls at press time.