Electricity rates on the way up, again
Power corp asks for a one cent fuel rider to coincide with scheduled 5.6 per cent increase
Laura Busch
Northern News Services
Published Wednesday, March 19, 2014
SOMBA K'E/YELLOWKNIFE
Yellowknifers can expect to pay higher rates for electricity beginning April 1, as the third of four scheduled rate increases kicks in and a new one-cent-per-kilowatt-hour fuel rider is expected to take effect.
The Northwest Territories Power Corporation (NTPC) announced March 11 that it has filed an application with the Public Utilities Board (PUB) for a fuel rider to offset the rising cost of diesel.
Since NTPC set its power rate in 2012, the price of diesel has risen eight per cent, resulting in a $2.5 million deficit in the fuel stabilization fund.
"What we do is set our price and over the course of time, the price of diesel goes up - and it has significantly gone up," said NTPC spokesperson Pam Coulter.
The purpose of the fuel stabilization fund is to absorb the fluctuating cost of diesel without affecting power rates.
"If we were actually to charge people as prices go up or down, the fuel rates would fluctuate very frequently," said Coulter. "So, we stabilize it, and in doing it this way, it helps us have less frequent changes in the cost, and they're lower."
If the territory-wide one cent fuel rider is approved by the PUB, it would increase the average customer's bill by $2 to $8 per month and pay off the $2.5-million deficit in 18 months.
There seems to be a misconception among Yellowknifers that the city only uses diesel fuel in the event of a power outage, said Coulter. That is not true. During peak consumption, such as over the dinner hour, the diesel generators kick in to provide the additional power needed, she said.
NTPC declined to give Yellowknifer figures on how much diesel fuel is consumed at the Jackfish Power Plant.
In addition to this increase, the third of four scheduled rate increases will raise NTPC's power rate by 5.6 per cent on April 1. For the average customer, that will mean a $3 to $9 increase per month, said Coulter.
Factoring in both expected increases, the average customer can expect to pay between $5 and $17 more per month for power. This may seem a modest amount, but for families struggling with the already-high cost of living in Yellowknife, the pinch will be felt.
As a result of the increased power bills, which NTPC has credited to cold weather, Yk residents have created a Facebook group called 'Yellowknife residents cry out for help against NTPC power bill!' The group quickly gained more than 100 members.
"Eight dollars a month extra - that is a trip to the movies for my child, an extra treat for her, or extra for groceries," wrote group member and Yellowknife resident Teresa Long.
The news of the proposed rate rider comes on the heels of eyebrow-raising bills in December that saw the cost of electricity double for some Yellowknife customers.
It is not just one month of increased bills that has residents worried, said Yellowknifer Mindy Frost-Greene.
"We already pay such an astronomically high amount for power compared to the rest of the country that some people have publicly indicated they aren't sure about the affordability of staying in Yellowknife long-term," she wrote to Yellowknifer.
"Can we consider the implications of losing long-term residents, including qualified Northern workers and/or Northern small-business owners?
"I know the rate increase isn't huge, but keeping in mind just how fed up and frustrated many residents have been feeling, these points may be worth considering."
