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NORTHWEST TERRITORIES
Power costs for customers of the Northwest Territories Power Corporation (NTPC) will increase next month if the NWT Public Utilities Board accepts the general rate application the organization filed March 23.

Michael Miltenberger: Costs at Power Corp. are outstripping revenues. - NNSL file photo

The application, the first the NTPC has filed in five years, would apply an increase of seven per cent in 2012, 2013, and 2014 with another five per cent increase in 2015. The compound percentage would mean a 29 per cent increase over four years.

The GNWT is contributing $33.8 million over three years to allow for the rate increase to be spread out, Brenden Bell, NTPC chairman, stated in a news release.

"Rates will be sufficient in 2015/16 to cover NTPC's revenue requirements and GNWT contributions will no longer be needed," he added.

Michael Miltenberger, minister responsible for the NTPC, said the five-year pause between rate reviews is part of the problem.

"If we adjusted rates each year it wouldn't be that much of a shock," Miltenberger said. "After a five-year pause we have to make up all that ground we've lost. Right now the costs are far outstripping the revenues."

Miltenberger said information on the general rate application was released as early as six months ago. However, local leaders and business owners either hadn't heard about the rate increase or did not feel well enough informed to comment when questioned about how the rate increase would affect their operations or prices on goods and services.

"I haven't gone over it yet, but obviously any raise isn't a good raise," said Mayor Mervin Gruben of Tuktoyaktuk.

Miltenberger said the NTPC has cut its costs "down to the dollar" and is looking to alternative sources of energy to improve future costs.

"There was no bonus for NTPC employees last year," said Miltenberger. "The bonus structure now reflects that of the GNWT. We need to explore alternative energy sources. We need to review how we buy fuel, how we run the operation. Diesel is not a long-term choice overall."

Miltenberger also said the NTPC cut nine positions, three of which were in senior management.

A date for the general rate application hearing has not been set, but in the meantime, the NTPC submitted an application for an interim rate increase of seven per cent effective April 1. The NWT Public Utilities Board will process the application within the next few weeks, said Joe Acorn, chairman of the NWT Public Utilities Board.

"The NTPC has kept me updated on the process," Acorn said. "We asked them to send us updates as we were concerned that there would be too little time to review the interim application. Since billing isn't sent out until April 9, we could issue an approval up until April 6 and it would be effective for April.

Acorn said he sent an e-mail on Friday asking any intervenors to submit their comments by Thursday, March 29.

The public is encouraged to voice their opinions by writing letters, e-mails, or by sending a community representative to speak at the general rate application hearing, a date for which will be announced soon.

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