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Inuvik braces for high heating costs
Businesses and community leaders determined to ride out the rake hike

Miranda Scotland
Northern News Services
Published Thursday, December 13, 2012

INUVIK
Businesses owners and community leaders in town are concerned about how they will cover the heating bill when rates double in the new year.

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Town councillor Derek Lindsay said he is concerned about how the energy crisis could affect businesses in town. - Miranda Scotland/NNSL photo

Still, they say they are determined to find a way to come up with the money.

"I'm going to give it a go," said Terry El-Khatib, co-owner of The Roost. "We'll see how we can manage it … If I can't I don't know what to do."

During the winter, the restaurant's heating bill averages $2,300 per month, according to El-Khatib. However, the cost is expected to rise as Inuvik turns to Synthetic Natural Gas (SNG) as a short-term solution to the shortage of usable natural gas.

Currently, residents pay $19.30 per gigajoule but SNG comes with an estimated cost of $37 per gigajoule. Meanwhile, the Northwest Territories Power Corporation is seeking approval from the Public Utilities Board for a seven-per-cent increase over each of the next three years followed by a five-per-cent increase in the fourth year.

El-Khatib said he worries he may have to pass the extra cost on to his customers if he can't find other ways to bridge the gap.

Coun. Derek Lindsay, who is also director of the Inuvik Chamber of Commerce and manager of the town's Royal Canadian Legion branch, said businesses need to start saving now if they plan to survive the next few winters.

"This is not going to be an easy fix over a one-year period," Lindsay said. "I think we're going to be stuck with this propane definitely through this winter and probably next winter and maybe the winter after that also, so we have to be able to sit down and budget now."

The Legion, he added, will be alright this season thanks to the windfall from Chase the Ace. The fundraising competition brought the organization about $30,000 and some of that money has been put away to pay for the increased energy costs in the future, Lindsay said.

"I think we'll make it through the winter unless anything breaks or we have a major maintenance problem," he said.

Challenging time

Dave DeKwant, senior pastor of the Lighthouse Community Church, said he is confident his congregation will find a way to make it through this challenging time.

"We are just going to trust in the Lord that He's going to provide and we wish it was different but what can you do about this situation? It's just a difficult situation that we are in," he said.

As a precaution, DeKwant said the church plans to install wood-burning stoves. That way if there is a problem during the switch to SNG the organization will have a back-up heating supply.

Nonetheless, despite the determination of organizations to make it work, Lindsay said he is worried Inuvik could end up the ghost town it once was. In 1985 the federal government closed the Canadian Forces base in Inuvik, which employed 267 personnel, causing about 700 people to leave the area. The following year, another blow was dealt to Inuvik when the price of oil collapsed and oil company projects nearly ceased.

"We hit bottom," Lindsay said. "I hope we don't get into that situation again because it was a bit of a hurdle and it took us a while to get over."

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