The NWT Power Corporation says it wants to increase power bills by more than 12 percent to cover the rising cost of diesel.
NTPC said on Friday it is asking regulator the Public Utilities Board for permission to charge extra on residents’ monthly bills. The end result would be that an average residential bill costs $32 a month or $384 a year more than it does now, the power corporation stated.
The power corp isn’t the distributor in Yellowknife or Hay River, but does sell power to distributor Northland Utilities, which would be expected to pass any increase on to its customers.
If the Public Utilities Board approves the increase, it would mean a 13.6-percent increase for Taltson-zone residents – NTPC customers in Fort Resolution and Fort Smith and, in all probability, Northland Utilities customers in the Hay River area unless that company chose to absorb the rate hike.
For people in the Snare and Thermal zones – virtually everyone else, and including Yellowknife if Northland Utilities passes on the increase – the hike will be 12.2 percent.
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Caroline Wawzonek, the finance minister and minister responsible for the power corporation, said the proposed increases were an “unfortunate reality.”
“I’m committed to finding a fiscally sustainable path forward,” she said in a statement.
The power corporation said its fuel costs have “increased by an average of 39 percent per litre since December 2021,” which is the marker used for the current rates it charges. (Diesel it uses for electricity generation is exempt from the carbon tax, the power corporation noted.)
“Short-term debt has been used to cover the additional costs incurred due to high fuel costs, but this is not sustainable over the long term,” NTPC stated in a news release.
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Cory Strang, NTPC’s president, said the Russian invasion of Ukraine was a major factor in the rising price of diesel, adding that the power corporation is losing money on power generation.
Looking ahead, he said: “In order to mitigate against this type of situation, we are committed to reducing our reliance on diesel.”
NTPC says the rate increase – known as a rider – will remain “until fuel prices decline” or the next major pricing overhaul, if it is approved.
