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SOMBA K'E/YELLOWKNIFE - Even though Northland Utilities' power rate increases were approved by the Public Utilities Board earlier this month, the company says Yellowknifers will actually see their bills decrease.

The residential customer charge jumped to $22.14 from $18 and the kilowatt hour charge increased to 19.17 cents/kWh, which is a climb of 4.23 cents/kWh.

The rates became effective Feb. 1.

Jeff Barbutza, manager of Northland Utilities, said despite the rate increase, residents will see a 0.73 per cent reduction in their February bills, as a myriad of rate riders disappear.

The approval of the rate increases means the utility company will get rid of interim rate riders which had been tacked onto bills to collect money the company said it has required since last April, while its general rate application was being assessed by the territory's utility regulator.

"Rider K has gone to zero. Rider R has gone to zero. Rider U has gone to zero," he said.

He added what used to be Rider A will not only become zero, but will be a refundable charge on next month's bill.

"During the lag in the board making its decision, we continued to collect that rider," he said.

"We over-collected that rider, so there will be about a one per cent refund," he said, meaning for next month's bill only, residents will be getting some money back.

Barbutza said there will be no increase to residents' power bills as a result of the general rate application approval.

When asked whether more riders will be tacked onto its rates in the future, Barbutza said this rate application was for 2008, 2009 and 2010 and said he expects rates to remain stable for the next two years.

"We are trying to bring stability to the customers' bills," he said. "That's where we are at from the Northland perspective."