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Reduce energy usage, says mayor

Dez Loreen
Northern News Services

Inuvik (Apr 14/06) - The Town of Inuvik may find itself cutting down on programs offered to the community, due to a fuel rider increase set by the Public Utilities Board (PUB).

On March 10, the Northwest Territories Power Corporation put in an application to the utilities board to increase energy costs for Inuvik by 11 per cent.

NNSL Photo/graphic

Noel Gordon of Inuvik Gas Ltd. checks a natural gas meter during one of his rounds in the community. The public utilities board has increased the fuel rider for Inuvik, which means people could be paying more for the same services through the Power Corporation for the next 24 months. - Dez Loreen/NNSL photo


The fuel rider increase came into effect on April 1 and will be in place for 24 months, said Terrence Courtoreille, manager of financial planning for the power corporation.

He said the rider increase is in place to recover costs.

"Due to rising fuel prices, there was a shortfall in fuel cost coverage, which is being collected now," said Courtoreille.

He said a portion of energy rates set by the Power Corp. covers the cost of fuel, but the rates have not been changed in four years.

The process of making a rate change application is underway, which would eliminate the need for a rider increase, but Courtoreille said that may take up to 12 months.

"Either way, the rider increase will remain until the shortfall is collected," said Courtoreille.

Inuvik mayor Peter Clarkson said an appeal process exists, but was not sure about the details of appealing the board's decision.

Clarkson said the town is entering a rate application year and the PUB should have denied the rider increase.

"If the rate is changing, there should be no need for a rider increase," said Clarkson.

If the town consumed the same amount of energy as it did in the previous year, Clarkson said the additional costs of the rider would be $76,000 per year.

"That is approximately an 11.21 per cent increase, and that is too much," Clarkson said.

Courtoreille said the 24 month period was to make the costs as minimal as possible for customers.

"We could have suggested a 12 month period, but want to minimize costs for everyone," he said.

A rate subsidy is in place for non-government residential housing, but that only covers 700 kilowatts per hour, per month, and not everyone in Inuvik is covered.

Courtoreille said there are approximately 1,390 residential units in Inuvik, and 1,060 of those qualify for the subsidy.

"As long as households can stay under 700 kilowatts per hour, it won't cost them anything extra," said Courtoreille.

Commercial customers are not covered by the subsidy. Courtoreille said the rider increase will cost them an additional $51 per month.

Clarkson thinks there should have been other methods used to recover the rising costs of fuel.

"Maybe cutting staff would be more efficient," said Clarkson.

Inuvik's fuel costs have risen as well, but the mayor said his council have found ways to recover those costs.

"We have found ways to run our programs and be more efficient as well."

Clarkson said now council will need to look at how to deal with the additional costs, which could lead to reducing programs offered or a tax increase.

"Nobody wants to see that large of an increase. Some residents have already come forward asking how they can help," Clarkson said.

To date, Courtoreille said 75 per cent of Inuvik is powered by natural gas, but that will increase to 90 per cent in a few months when a new gas engine is installed.