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SOMBA K'E/YELLOWKNIFE - As the territorial government's consultation caravan rumbles across the NWT holding energy and electricity regulation discussions, the issue of a one-rate zone has once again popped up.

Kevin Menicoche, MLA for Nahendeh, said he wants to see all NWT residents pay the same rate for power.

"Having only one rate for electricity in the NWT would offer equity to all residents," he said.

He said he is concerned with the discrepancy between what diesel and hydro communities are paying and is opposed to the position hydro-communities such as Yellowknife, Hay River and Fort Smith have taken against the one-rate structure.

Currently, Fort Simpson residents pay 73.45 cents per kilowatt hour for their diesel-generated power, while residents of Fort Smith pay 16.36 cents per kilowatt hour.

In a figure provided by the Northwest Territories Power Corporation, if all NWT residents paid the same electricity rate, it would work out to about 31 cents per kilowatt hour.

This rate would mean a reduction for all communities's in Menicoche's riding.

He also said the standardized rate would cut administration costs for the power corporation and Northland Utilities, which must justify 33 different community power rates as part of their general rate applications to the Public Utilities Board every three years.

In January, News/North reported lawyers representing NWT communities during the two companies' last rate applications took home more than $466,000, while a lawyer arguing on behalf of the power corporation was paid US$166,000. These costs were factored into current power rates and recovered from ratepayers.

Menicoche said the territorial power support subsidy - the automatic billing of residents' first 700 kilowatt hours at Yellowknife's rates - isn't enough as large households typically use far more than the 700 kilowatt hour threshold.

Currently, the territorial government has more than $14 million budgeted for the subsidy, including more than $10.8 million for residential users and $3.2 million for the lesser-known commercial subsidy.

On Feb. 23, Premier Floyd Roland announced a comprehensive public electricity and energy review, that would get input from all NWT communities about what to do about rising energy costs.

A discussion paper released by the government highlighted equalized rate structures as a talking point.

All the territory's non tax-based communities met with the review panel in Yellowknife from March 30 to 31.

Gord Van Tighem, president of the NWT Association of Communities, said discussions on a one-rate structure were set aside.

"The concern there is that there are winners, but yes, indeed, there are losers," he said.

Van Tighem said the main points of interest and agreement were discussions on energy conservation and alternative energy possibilities, including mini-hydro, which would deal directly with the rising costs of energy in communities.

Van Tighem - also Yellowknife's mayor - said the position of the hydro communities would likely be to oppose a standard rate structure, which could mean the end of the power support subsidy.

"If the subsidy goes away completely, then there are some communities that get no benefit out of (the one-rate structure)," he said.

He said other areas could be looked at, like the subsidy system itself. He said the threshold of when it kicks in and perhaps having the commercial subsidy applied automatically to businesses bills - as opposed to making them apply for it - could be attempted.

He said the subsidy could also vary by season and region.

Discussion of a one-rate zone is not new.

It was first brought up in 1990, through a similar review process as today's.

In 2000, it came up again, with a one-rate structure proposed in the power corporation's 2001/03 rate application. The territorial government directed the corporation to withdraw the proposal in October 2002. The power corporation's board of directors disagreed with the policy decision and were turfed by the GNWT. The new board then re-filed the application on a community rate basis.

The review panel travelled to Inuvik in March, Norman Wells last week and will be in Fort Simpson on April 8, where Menicoche said he will bring up the issue.

The panel will continue on to Hay River, Fort Smith and Yellowknife later this month, before releasing its findings in May.

Van Tighem said there was one thing everyone could agree on: power rates need to go down.

When NWT rates are compared with what the rest of Canadians were paying for energy, he said, "it's scary."