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Natural gas rates could climb

Dez Loreen
Northern News Services

Inuvik (Oct 20/06) - A 16 per cent increase could show up on Inuvik natural gas bills in the near future.

While more information is needed to justify the increase, local leaders are calling on the public to stand up against it.

NNSL Photo/graphic

Peter Clarkson opposes the Inuvik Gas request to raise natural gas prices in town by 16 per cent. The request was made to the Public Utilities Board and now Inuvik Gas has been asked by the board to justify the jump. Community leaders are also working to stop the rate increase before it's finalized. - Dez Loreen/NNSL photo

The only supplier of natural gas to the town is Inuvik Gas, which is supplied through its parent companies.

The company recently made a request to the Territorial Public Utility Board to increase the price of gas in Inuvik by 16 cents on the dollar, said Ken Jacobson, general manager of Inuvik Gas.

The current price of the gas in the community is $16.70 per gigajoule, but that could soon jump to $19.35.

Jacobson requested the new rate take effect as of Oct. 22.

The increased rates reflect higher costs faced by Inuvik Gas, he said.

"Even though we want to raise the price, it is still the cheapest heating service in town," he said. "With natural gas, there is a 37 per cent savings over home heating fuel."

After word of the gas company's request came out, the Town of Inuvik sent its own letter of complaint to the utilities board.

In the letter from the town, Mayor Peter Clarkson outlined his concerns.

"The town is opposed to the increase," he said.

In the letter, Clarkson pointed out an increase of 16 per cent would not be good for the community in cold weather.

"A 16 per cent increase as we enter the winter months will inflict financial hardship on community members, businesses, government programs and services, and virtually all customers who are using natural gas," said Clarkson.

"We do not believe that a 16 per cent increase is justifiable when territorial and national inflation rates are between two and three per cent."

John Hill, chairperson of the Public Utility Board, responded to Clarkson's letter with a list of information needed to be provided before Inuvik Gas' increase could reach move forward.

"We will need additional information justifying the increase before we can act on the request," said Hill.

Inuvik Twin Lakes MLA Robert McLeod is also publicly slamming the proposed rate increase and wrote a letter of his own to the board requesting a public meeting on the matter.

"After I wrote my letter ... they sent one back stating that there aren't enough people in the community that are concerned about it," said McLeod.

"I've heard concerns from people here in town ... the last time I checked, I represent these people."

McLeod said his concern is not for himself - as he heats his home without the benefit of natural gas.

"I listened to people come up to me with their concerns," he said.

"So for the minister of the Public Utilities Board to say there's no public outcry is not legit."

A petition is being started in town by McLeod and he is also trying to address the matter at Legislative Assembly.

"The petition will be tabled in the house," said McLeod.

"If the Public Utilities Board wants a public outcry, they will get one."