Andrew Raven
Northern News Services

Yellowknife (June 29/05) - The price of electricity in the capital will jump about five per cent next month, due largely to the skyrocketing cost of oil.

The average Yellowknife household -- which consumes about 700 kilowatt hours of electricity per month -- will see its monthly bill rise by roughly six dollars, according to calculations from Northland Utilities.

The increase became necessary after the Northwest Territories Power Corporation raised its rates, said Jerome Babyn, a manager with Northland Utilities, which buys electricity from the Crown corporation.

"We have to pass on any increased costs to the consumers," Babyn said Thursday.

The Power Corp. received approval from the Public Utilities Board last month to temporarily raise its rates by nearly 10 per cent.

The record high price of oil -- which has nearly doubled to $58 per barrel in the last two years -- was the main reason for the rate increase, said Power Corp. financial analyst Terence Coutoreille.

The so-called rate rider will remain in effect for 12 months and is designed to help the company recoup its fuel costs over the last two years.

Coutoreille said the Power Corporation will likely be less reliant on fossil fuels this year and most of its power will come from hydro-electric facilities.

"We are forecasting an extremely high water year," Coutoreille said. "We expect 98 to 99 per cent of the power (consumed in Yellowknife) will come from hydro," he said.

The Jackfish power plant, located just minutes from downtown Yellowknife, will remain a backup facility only.