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SOMBA K'E/YELLOWKNIFE - The chair of the Public Utilities Board said NWT residents who conserve their power will end up paying more if the territory went to a one-rate system.

Joe Acorn said if the current system, which provides a subsidized power rate for smaller communities, is changed to a one-rate system, utility companies would be providing huge relief to residents who use a lot of power and punishing people who use less.

"Eighty five per cent of all the power they sell is on or below the 700 per kilowatt hour (kw/h) subsidy rate," Acorn said. "A minority of the power is not subsidized to Yellowknife rates. The number of people who would benefit would be low and the number who wouldn't would be extremely high." Smaller communities currently pay 26 cents per kw/h for the first 700 kw/h used and then pay whatever their community rate is. Nahenedeh MLA Kevin Menicoche said many people in his communities are using more than the subsidized 700 kw/h. Menicoche said by scrapping the Territorial Power Support Program (TPSP) and transferring its $10 million to the Northwest Territories Power Corporation, it would allow for a territory-wide rate of 28 cents.

"They'd transfer the subsidy to the NWT Power Corporation and subsidize that way, allowing for a one-rate system at 28 cents per kw/h," he said, adding they'd still use the subsidy but they'd put it into an operations and management pot, so there would be no subsidy limit. "If we just scrapped the subsidy all together, it would be about 31 cents per kw/h."

Presently, a residential power user from Nahanni Butte using 1,000 kw/h per month pays 26 cents for the first 700 kw/h and then the community rate of 1.65 per kw/h (this includes current rate riders) for a total of $677 a month. Under a one-rate system, paying a flat rate of 28 cents per kw/h, the same resident would pay $280 a month, a savings of nearly $400.

However, a resident using only 600 kw/h in Nahanni Butte would pay only 26 cents per kw/h for a monthly bill of $156. Under the proposed rate of 28 cents per kw/h that same customer would pay an additional $12 a month. If the subsidy was removed all together the same resident would pay 31 cents per kw/h for a total cost of $186 a month, up $30 from the current system.

For customers in communities such as Fort Smith, who pay less than the present subsidy rate - 16.36 cents per kw/h - the increase would be more dramatic. For 700 kw/h, Fort Smith customers pay roughly $114. At a 28 cent rate the cost would be jump to $196 or $217 for a 31 cent rate.

"Someone is going to have to take an increase instituting something like this," Menicoche said. "It's going to benefit the people of the North who are paying high power rates."

Acorn said if the NWT changed to a one-rate system it would be helping alleviate the cost of people being careless about their power consumption and making ratepayers who pay attention to their usage fork out more money.

"A one-rate system sounds good," Acorn said. "Yes, it sounds great we're going to equalize everyone out to one rate. If we set the rate to 31 cents per kw/h and your current community rate is $1.50 kw/h than yes, this sounds great, but you have to factor in the territorial power support program. If they go to a one-rate zone at 31 cents and then subsidize everyone back down to 26 or 28 cents then nothing changes, but it all depends on what they decide to do with the support program."