Iqaluit (Dec 13/04) - The Iqaluit Chamber of Commerce is recommending a 17 per cent power rate increase as an alternative to Qulliq Energy Corporation's general rate increase proposal, which could see rates rise as much as 98 per cent.

Nunavut's Utility Rate Review Council will be receiving written submissions until Dec. 17 for consideration in regards to Qulliq Energy Corporation's general rate rider application.

The president of the Iqaluit Chamber of Commerce says it's hard to speculate whether his organization's presentation to the Utility Rate Review Council (URRC) had any effect, but he said the URRC did take the organization's presentation seriously.

"We are encouraged that the overwhelming message is that the general rate rider application is flawed and should not be recommended," said Glenn Cousins, president of the Iqaluit Chamber of Commerce.

Nunavut's power provider, Qulliq Energy Corporation, is proposing rate hikes of 98.2 per cent for commercial customers in Iqaluit and 74.9 per cent for residential customers. Rankin Inlet and Iglulik -- besides Iqaluit, the two communities most affected by the proposed changes -- are also facing substantial increases.

In Rankin Inlet, a commercial rate hike of 70.9 per cent is being proposed along with a residential rate hike of 68.3 per cent.

In Iglulik, the proposed rate hike for commercial users is 69.1 per cent, while residential rates are proposed to go up by 65.1 per cent.

The remainder of the rate changes range from an increase of 58.8 per cent for commercial users in Panniqtuuq to a proposed decrease of 40.3 per cent for commercial customers in Whale Cove.

Cousins explained that the URRC will take submissions until Dec. 17 and then take until February to issue a report.

The URRC's recommendations will be presented to Nunavut's cabinet, which will have the final say on what rate riders will be applied, Cousins confirmed. He speculated that the process could take until March or April to come to fruition.

"The expense of operating diesel is going to continue to grow and become less viable over the long term.

Hopefully, some meaningful investments will be made in the testing of small-scale hydro generation, wind generation or some hybrid generating plants," said Cousins.

Cost-effective alternative

Cousins is hopeful that eventually there will be a real cost-effective alternative to diesel put in place throughout Nunavut, but at the same time he admits it is reasonable to expect some increases in Nunavut's power rates.

"There will be an increase. There's been an increase in the cost of fuel since the rates were last changed. We know there will be an increase in operational costs and it's reasonable to anticipate an increase. Our recommendation is to base the increase on the rate of inflation since 1997-98, which we estimate to be 17 per cent," said Cousins.