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Qulliq Energy needs $19 million more

Kathleen Lippa
Northern News Services

Iqaluit (Oct 04/04) - Everyone in the territory could be paying the same rate for electricity under a proposal filed last week.

Qulliq Energy Corporation (QEC) filed a rate application with the Utilities Rate Commission, saying it needs to raise $19 million more to cover the $77 million cost of generating electricity in Nunavut. That's 34 per cent more than they are presently making.

Rates could change by April 2005. It would be the first rate increase in seven years.

Hazen Hawker, QEC's chief operating officer, said the corporation has proposed a territorial rate structure over the next three years under which everyone would end up paying 51.99 cents a kilowatt.

"Many smaller communities will see a decrease," said Hawker.

"It all depends on what government decides. The Utilities Rate Commission (URC) and government may not agree."

Hawker said rates need to change because Qulliq doesn't charge enough to cover its costs.

"The corporation was charging a 3.4 per cent fuel rider at the time it was removed in 2002," he said. "At that point a fuel rider should have been doubled or tripled."

A rate application in the spring of 2003 was recommended by the Utilities Rate Commission, but was declined by the government of Nunavut.