SOMBA K'E/YELLOWKNIFE - Northland Utilities will have to reimburse overcharged customers by itself and may not recover the costs of doing so from power consumers, according to a letter from the territory's utility regulator last week.

In April, the NWT Public Utilities Board delivered 18 directives to the company, following an inquiry into unusually high consumption rates from a handful of customers. The last three directives involved refunding three customers, whose high bills lead to the inquiry.

Northland Utilities subsequently requested that deferral accounts be set up to track the costs of implementing the board's directives, so they could ultimately be recovered from consumers in the company's next general rate application.

Joe Acorn, chair of the utility board, said it would consider setting up accounts for the first 15 directives, but not the directives involving the refunds, in a June 17 letter.

"The board notes that the small cost associated with these three directives (total of $1,131.23) could likely be considered "not material" if raised within the context of a (general rate application) process," wrote Acorn.

Jeff Barbutza, Yellowknife manager of Northland Utilities Ltd., told Yellowknifer two weeks ago the company was drafting an appeal to three directives involving reimbursements to customers in the complaint.

Acorn later stated the burden was on the company to show the validity of its complaint, as the process of drawing up the appeal itself is likely to "significantly exceed the value of the three directives."

Acorn's letter last week came as a response to a May 22 letter from Northland Utilities, telling the board it would cost the company more than $330,000 to implement the 18 directives.

Northland's letter did get at least some positive response. After the company told the utility board it would cost $150,000 to lower its complaint investigation process threshold, the board said the company could suggest a new proposal that didn't incur "significant new costs."

Acorn said the new proposal should be centred around notifying customers after an unusual meter reading and not merely the issuance of an unusually high bill. "We want the level of service to improve," he said on Tuesday. The company has until June 26 to file its new customer service proposal.

Acorn addressed further issues in his letter, noting the excessive legal costs Northland has incurred thus far in preparing its request for the deferral accounts. To date, Northland has spent $11,296 on 21 hours of legal work - adding up to about $538 an hour. This exceeds the board's maximum recoverable rate, which is $350 per hour.

Acorn said the company will only be able to recover up to $350 per hour on the legal fees it expends.

He also addressed Northland's concerns over the board's directives and how the company believed the power watchdog overstepped its terms and conditions.

Acorn wrote the terms and conditions "cannot anticipate nor have a specified procedure for every eventuality.

"When warranted by the circumstances, the utility can and should provide a reasonable level of customer service which may not be described by the (terms and conditions)," the letter states.

Barbutza did not return phone calls Monday.