Power costs to rise across NWT
Rate increase of 4.8 per cent starts this month
Shane Magee
Northern News Services
Monday, August 1, 2016
SOMBA K'E/YELLOWKNIFE
The cost of turning on the lights has gone up across the territory.
The Public Utilities Board in a decision July 26 approved a Northwest Territories Power Corporation request to increase energy sales charges 4.8 per cent for all customer classes effective Aug. 1.
That's expected to mean an additional $10 per month on the bill of a residential customer using about 1,000 kilowatt hours per month during the winter, according to the power corp.
"NTPC is pleased that the (Public Utilities Board) recognized the need for an interim rate increase, while they are reviewing the corporation's general rate application," stated power corp. spokesperson Pam Coulter in an e-mail.
The interim increase will last until March 31 next year. However, the power corp. has also filed a general rate application that seeks to make the 4.8 per cent increase permanent followed by a four per cent increase each of the following two years.
That application is still working its way through the board and will result in public hearings, which have yet to be scheduled.
The approval of the interim increase follows a denial by the board of a similar request earlier this year. NTPC reapplied for the interim increase and this time it was granted.
Gordon Van Tighem, chairperson of the Public Utilities Board, said the power corp. will still have to provide the board further information as part of the general rate application.
"(The interim rate) is on a refundable basis, so if it's not justified through a general rate application, it would come back - they've still got some work to do," Van Tighem said last week.
The rate increase is expected to raise an additional $3 million in revenue for the power corp.
NTPC requested the interim increase to cover an estimated revenue shortfall of $8.1 million for 2016-17, in part caused by an annual decline in power sales of 1.5 per cent.
Non-fuel costs and maintenance expenses have increased $3.2 million with about $1.8 million linked to inflation over three years.
Capital costs, which goes toward fixing or upgrading infrastructure, has increased about $5.3 million since 2013-14, the power corp. stated in its submission to the board.
In its submission, it stated a denial would harm both the corporation and customers as it would require the power corp. to take on a higher debt load, something which could become unsustainable.
Opposition to the interim rate hike was voiced by the Northwest Territories Association of Communities, a lobby group representing all 33 community governments in the territory.
The Town of Hay River and City of Yellowknife were not in favour of the increased rate being applied to energy sales only, writing to the board it could unfairly place a greater cost on Northland Utilities Ltd., which distributes power in the two communities.
The hike as approved will have an impact not just on residents and businesses, but also municipalities.
For instance, the City of Yellowknife estimated a 4.8 per cent increase effective July 1 would cost taxpayers an extra $88,000 to cover higher power bills.
That figure would be lower since the increase is only coming into effect Aug. 1.
The city estimates a four per cent increase in 2017, which the power corp. has applied for in its general rate application but has not yet been approved, would cost $234,000.
