PAULATUK - Paulatuk Mayor Ray Ruben says he's looking forward to his upcoming power bills.

It's an unusual reaction for someone who lives in a community where some residents shell out hundreds of dollars each month for electricity, at more than $1.20 per kilowatt-hour. On Oct. 1 the territorial government is changing how it charges customers, which will result in 60 per cent decrease in Ruben's power bills.

Last week, the GNWT announced sweeping changes to the power rate system through the Power Corp. Customers will be charged different rates under seven new zones, as opposed to different rates for each of the 33 communities.

People who use less power - under 700 kW-h - which accounts for most community residents, won't notice much difference. But residential customers who run up higher bills will see their rates reduced dramatically, ranging from 79 per cent in Colville Lake to 19 per cent in Inuvik. They'll all be charged a fixed rate of $0.49 per kW-h. Commercial customers will see similar savings with a rate of $0.42 per kW-h, ranging from a savings of 80 per cent in Nahanni Butte, to 11 per cent in Dettah.

Ruben, who said he pays up to $800 per month in the winter for power in his home, said the changes will personally affect all residents.

"I'm certainly looking forward to it," he said.

He said he hoped the savings will allow people to spend money on other necessities, like food.

"For some people keeping a full meal on the table every day, what with the caribou hunting restrictions ... everybody is living more off the stores and store-bought foods. It'll definitely make a difference," said Ruben. "Even myself, with a large family, getting extra stuff like fruits, a lot of time you bypass that stuff. You get what you need and hopefully if the power is cut back as much as they say it will, we'll be more open to purchasing items like that."

In Paulatuk, Ruben said the community would also benefit from savings if it didn't have to spend as much on electricity for the community buildings like the youth centre.

Debbie Gordon-Ruben, the community's senior administrative officer, said the youth centre's power bill costs more than $1,000 every month and if that money was freed up, it could go to more programs for the kids.

Kim Tucker, manager of the Co-op in Colville Lake, the community that now has the highest rates in the territory, said saving almost 80 per cent on power would mean a huge difference in her business's operation.

"That would be major for the store," she said. "We could order more stuff. With the Co-op, it's owned by the people, the more money we have, the more things we can get. You can only order what you have in your bank account."

For her 1,500-square-foot store, she pays $7,000 per month for electricity, despite only using half the ceiling lights to conserve power.

"I pay more than what people with double the size store pay elsewhere," she said.

Having more money to spend on products could increase the amount and selection of food she could order. With operational costs reduced, food prices could go down as well.

"If that happens and the bills go down ... cutting some things would definitely be an option," Tucker said.

Jackie Jacobson, MLA for Nunakput, said he was very happy with the changes.

"Finally people in the communities are going to have reasonable power rates and power bills," he said. "People are actually able to finally save a little bit of money or buy food."

He said he hopes the savings will help reduce the high cost of living.

"People with big families are going to notice," he said. "Maybe now (businesses) can start charging reasonable rates."

The changes go into effect Oct. 1. Twenty-two communities across the Delta, Sahtu and Deh Cho will see lower rates. Dettah and Fort Providence are the only communities to see reduced rates that don't fall under the Thermal Zone.

Residential customers will be subsidized at approximately 26 cents per kW-h for the first 1,000 kW-hrs each month between September and March yearly with a 600 kW-hr subsidy for the remaining months. Currently the first 700 kw-hrs are subsidized monthly.

In the Thermal Zone - which encompasses most of the Delta and the Sahtu, 55 per cent of customers don't use more than 700 kW-h, but 15 per cent use more than 1,000 kW-h.