Inuvik (Dec 08/06) - Mayor Derek Lindsay wants Inuvik Gas to explain to the public why an increase in gas rates is needed.

In October, Inuvik Gas applied for a rate increase through the Public Utilities Board.

The proposed rate would increase to $19.35 from $16.70 per gigajoule.

Inuvik Gas general manager Ken Jacobson said the increase reflects rising costs from their supplier.

"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."

A letter of protest was then sent to the utilities board by the Town office, who wanted accountability and proof that an increase was necessary.

Since then, utilities board chair John Hill has requested additional information from Inuvik Gas that outlines the need for a rate increase.

"We received some information from Inuvik Gas, but still need more before a decision can be made," said Hill.

The Town of Inuvik has also asked that a public forum be held, where Inuvik Gas would explain the rate increase to its customers.

"We have been appealing this process, we had sent a letter to the PUB with the assistance of our lawyer," said Mayor Derek Lindsay.

"We want a public hearing to find out why this increase is needed."

Lindsay wants Inuvik Gas to explain to the people why their gas costs are rising 16 per cent.

Jacobson said the whole process is at a standstill until the utilities board makes its decision.

"The PUB wanted more information so we provided it," he said. "They are reviewing the case, nothing is going to happen until we hear from them."