SOMBA K'E/YELLOWKNIFE - Business owners across the North are now paying considerably less for one of their biggest expenses - power.

Reduced power rates across the territory are giving businesses and residents a break, which some people are saying is a long time coming.

Business rates have decreased to all the power corp.'s business customers in the communities. The most substantial savings will be experienced in the thermal zone - the largest region consisting of 20 communities - where a flat rate of 40.20 cents per kWh went into effect on Dec. 1. Previously business rates in those communities ranged from 53.68 cents per kWh to 214.65 cents per kWh.

In a community of 147 people, the Colville Lake Co-op has had trouble turning a profit due to the high cost of power.

"It's the only store we have, and with the high cost of power and everything it was hard to even make ends meet," said Joseph Kochon, the community's senior administrative officer. "It's welcoming news for the community that we finally get a break."

However, communities are still paying considerably less than the 17.60 cents kWh Yellowknife business customers currently pay.

Kochon said reduced utility costs will be a boon for the community's bed and breakfast.

"We've just been chasing the power bill all the time," he said.

Prior to the power zone restructuring the business customers in the NWT's 33 communities each paid a different rate for power. Now, instead of 33 rates there will be seven, one for each zone - NUL Hydro (Hay River, Hay River Reserve and Enterprise) 20.76 cents, Norman Wells 33.62 cents, NTPC Snare (Dettah and Behchoko) 29.83 cents, NUL Thermal (Fort Providence, Dory Point/Kakisa, Wekweeti and Trout Lake) under review, NTPC Taltson (Fort Resolution and Fort Smith) 12.88 cents, Yellowknife 17.60 cents and NTPC Thermal (remaining 20 communities) 40.24 cents.

Residential rates have also decreased in each zone to 24.23 cents in NTPC Snare, 16.36 cents in NTPC Taltson, 37.04 cents in Norman Wells, and 47.39 cents in NTPC Thermal. The most substantial decrease will be in Colville Lake - a thermal zone community - where power rates were 230.26 cents per kWh.

Community residents will retain a subsidy reducing their cost to Yellowknife's residential rates for up to 1,000 kWh for the period of September through to March and 600 kWh in the summer.

The power corp. has previously reported more than 80 per cent of community residents operate within the subsidy allowance.

Part of the cost decrease to diesel communities stems from a redistribution of the corporation's head office costs. A report titled Efficient, Affordable and Equitable: Creating a Brighter Future, tabled earlier this year, recommended $4 million in head office costs borne by diesel customers be charged to hydro customers - such as Yellowknife and Hay River - instead of diesel customers.

To offset the increased cost to hydro customers the government added $6 million to the corporation's stabilization fund - a fund the corporation uses to recover losses when there are sharp increases to costs such as the price of diesel.

The report said this would reduce the per kWh charge by about 1.8 cents, which was collected on users' monthly bills. Also, the government will not collect the yearly $3.5 million from the corporation for the next two years.

He said the committee is considering recommendations to have the government set rate targets for the power corp. each term.

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