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SOMBA K'E/YELLOWKNIFE - Communities with diesel power stations serviced by Northland Utilities have almost half the base power rate when compared with similar sized communities serviced by NWT Power Corp (NTPC).

The numbers raise question about how efficiently NTPC is operating when compared with a private company, although NTPC said the big picture tells a very different story.

When comparing communities with similar population and with comparable road access, Northland Utilities is consistently able to provide lower base power rates.

Thanks to government subsidies, all residential customers begin by paying roughly 14 cents per kilowatt/hour (kw/h) for their first 700 kw/h every month, which is about what the average household uses in a month.

The taxpayers ultimately foot the bill for those subsidies. That means taxpayers are paying less in subsidies to communities powered by Northland Utilities.

The numbers are based on base residential rates and do not take into account riders or surcharges. When those added costs are factored in, Northlands power rates are still significantly lower.

For example, Northland has a base power rate in Kakisa of 55 cents per kw/h. In Jean Marie River, with only 29 more residents, NTPC has a base power rate of 103 cents per kw/h. That's a difference of 45 cents. Both communities have year-round road access. When you factor in riders and surcharges, Kakisa's rate is still 43 cents cheaper.

If rates were not subsidized, a homeowner in Kakisa would save about $315 every month on their power bill when compared with a homeowner in Jean Marie River.

As it is, residential customers pay the same rates in both communities with the GNWT paying the difference.

Likewise, Fort Providence and Fort Liard have year round access to fuel delivery and comparable populations, but Fort Providence's base rate is 26 cents cent less than Fort Liard's. When riders and surcharges are factored in, Fort Providence rate per kw/h is 28 cents cheaper.

These differences only show up in communities that rely on diesel generators. Northland also services Hay River, but customers there get their power from the Taltson Hydro System.

NTPC Spokesperson Vaughn Slade provided a list of possible reasons for this discrepancy.

Among the reasons given were the age of the equipment, administration costs, and staffing.

NTPC has a staff member in every community it operates while Northland does not. Slade said it is possible that NTPC provides a higher quality of service than Northland, but NTPC has been unable to confirm this because Northland has not filed reliability information with the Public Utility Board as NTPC does annually.

Northland also does much of its administrative work outside the territory, through the Atco Group.

"This means that the jobs associated with these duties are also located in southern Canada and unlike NTPC's similar positions, the NWT does not get the benefits of the taxes and spending from these positions," said NTPC Spokesperson Vaughn Slade.

Slade said the difference may also be accounted for in the way Northland distributes its expenses on its books.

"It is NTPC's understanding that NUL allocates more costs to Hay River and less to its diesel communities while NTPC allocates less to Fort Smith and more to its diesel communities," he said.

While the bottom line may look good on paper for these few communities, Slade said it is important to look at the bigger picture of what NTPC provides as a whole, including Northern jobs and dividends. "I think a lot of people don't understand is that our dividend goes back to the GNWT to help support the territorial power support program," he said.

Duane Morgan, manager for Northland Utilities in Hay River, was at a loss to explain the difference. He said the Public Utilities Board sets each community's rates by assessing the operating costs and capital costs of the utility operating in that community.

"We supply exactly the same service as the power corporation and the way that our rate structure, and theirs, goes through the public utilities board," he said.

Morgan said both NTPC and Northland have similar operating styles and admitted he would think the rates would be similar, all other factors being equal. "People can draw their own conclusions," said Morgan.