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SOMBA K'E/YELLOWKNIFE
The city will intervene on the public's behalf regarding proposed rate increases by the NWT Power Corporation.

The increases would see rates go up by seven per cent as early as April 1, with continuing increases of seven per cent in 2013, seven per cent in 2014 and five per cent in 2015 if approved by the NWT Public Utilities Board. All told, they add up to a 29 per cent increase over four years.

"Northland Utilities buys power from the NWT Power Corporation, so the wholesale rate will be passed on by Northland Utilities to the ratepayers in Yellowknife," said Joe Acorn, chair of the NWT Public Utilities Board. He said it won't necessarily mean a seven per cent increase on top of what users are already paying, but is only one part of what determines what Northland Utilities includes in its bills, with the cost of distribution being a major factor as well.

City councillor Mark Heyck said it is a lot for Yellowknifers to take, especially given that Northland Utilities increased rates by 1.2 per cent in January.

"Well, it would certainly have a big impact, both on the municipality, in terms of our municipal operations and what we pay in power, but more importantly on community-wide affordability," said Heyck. "Cost of living has always been a big concern of our residents, and this isn't going to do much to help that."

He said the city has plans to intervene regarding the increases, hoping to lessen the impact on residents and businesses.

"So in this case, we would be arguing that it's a very steep increase and intervening with the (Public Utilities Board) in order to try to have that increase lowered from what's being proposed right now," said Heyck.

"It's really unfortunate that there's such a small window here for people to provide feedback and provide input through the public hearing process. That's certainly a shortcoming of this process," he said. Intervenors have until tomorrow to make submissions for the interim rate increase of seven per cent, effective April 1.

Acorn said the short window was the result of late submissions regarding $33.8 million the territorial government said it can contribute to help lessen the blow.

Heyck said he is sympathetic to residents facing increased power rates.

"I think it's a little frustrating for residents sometimes, because people are making genuine efforts to use energy more efficiently and conserve electricity and that type of thing," Heyck said.

Mayor Gord Van Tighem said he would like the power corporation to increase its efficiency so that such rate increases would not be necessary.

"The power corporation was involved in a rate review process (in 2010) and got a pretty clear message that they need to address efficiencies and other things that would avoid rate increases. We haven't seen any evidence that shows they have taken any action to increase the efficiency of their operation," said Van Tighem.

He confirmed that the city and the NWT Association of Communities will make submissions to the utilities board expressing concern over the increases and the process.

A representative with Northland Utilities said it is aware of the power corporation's application but couldn't speak to how it will affect ratepayers.

Acorn said there are no regulations on how often a general rate application can be filed.

Representatives with NTPC could not be reached for comment by press time, but a news release states the increases would reflect higher costs of generating electricity since the last general rate application.

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