SOMBA K'E/YELLOWKNIFE - A new review of the NWT's electricity system is certain to get people all charged up.

The review recommends what is sure to be both a controversial and popular idea depending on where you live - consolidating the territory's 33 different electricity rates into a three-rate system: the Thermal Zone (for communities powered by diesel and natural gas), the Taltson Hydro Zone and the Snare Hydro Zone.

In order for a flat thermal zone to occur, the two hydro zones would have to absorb some of the costs, meaning higher electricity rates in Yellowknife, Hay River, Fort Smith and some other communities.

The report states the current rate system is highly complex and has created "hard feelings and acrimony" between communities.

Mark Cleveland, chair of the review team, said it is too soon to tell how much the cost of electricity would increase in communities serviced by hydro.

"You really have to decide what your structure is going to look like and how your costs are going to be allocated before that happens, before you can say what the numbers are," he said.

Fort Smith Mayor Janie Hobart is concerned about the possibility of rates going up in her community.

"Any time rates go up, it makes people unhappy," she said, adding it is also never easy to promote business when rates are increasing.

While some in the NWT may envy Fort Smith for its relatively low electricity rates, Hobart said they are actually too high considering the low cost of bringing power from the nearby Taltson hydro facility.

On the other side of the electricity spectrum is Colville Lake, which would see its rate - currently 230.27 cents/kwh - fall under the proposed three-zone system.

"That would be wonderful," said Barb Huculak, manager of Katami Co-op Association in Colville Lake, adding the community's electricity rate is one of the highest in the NWT.

While she would be pleased to see the rate fall, Huculak said she would also like to see some government assistance with electricity rates for businesses, not just residences.

The proposed thermal zone would level electricity rates for all communities using natural gas and diesel - which currently results in extremely high power bills - bringing them down to Inuvik's current rate of about 52.5 cents per kilowatt hour.

The review, titled 'Creating a brighter future: A review of electricity regulation, rates and subsidy programs in the Northwest Territories, was tabled in the legislative assembly earlier this month by Bob McLeod, minister responsible for energy initiatives.

McLeod said it is too soon to tell if the GNWT will set up the three-zone system.

"The implementation of those will take some time, so it's too early for us to talk about specific recommendations," he said. "Certainly we welcome the report and believe that it has given us excellent material for consideration."

The government intends to have a comprehensive response to the review by March 2010.

"It's an opportunity to bring about real change to the system and it's really important that we get it right," said McLeod

In all, the review makes 39 recommendations on various aspects of the NWT's electricity system.

In order to make it possible for people in thermal communities to afford power, the GNWT currently offers the Territorial Power Subsidy Program.

The report notes the cost of the subsidy program went from $4.4 million in 2000 to $9.5 million for the 2008-2009 fiscal year.

It supports some adjustments to the program's residential usage thresholds.

The review team heard from more than 350 people through written submissions and meetings throughout the NWT.

"If you talk to people across the territories, they would like to have cheaper power that's reliable and available when they want it," said Cleveland. "In terms of how to get there, there's not a lot of agreement."