Hay River will be able to appoint the NWT Power Corporation as its new power distributor, nearly a decade after first deciding to do so.
Power regulator the Public Utilities Board says the transfer – which had been opposed through arbitration, the courts and the regulator by existing distributor Northland Utilities – is “in the public interest” and can go ahead.
Hay River’s town council chose the power corporation to replace Northland in 2016 on the basis that residents would enjoy cheaper rates. Subsequent arguments between the parties involved have delayed the transfer for years.
Even the latest decision, made at the end of March and published by the regulator this month, isn’t quite the final word – and leaves room for more delay.
The Public Utilities Board (or PUB) says it wants the deal wrapped up by the end of 2024, but it’s also asking both the NWT Power Corporation and Northland to file new general rate applications. Those are normally meaty documents that take a large amount of preparation.
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Getting those documents filed, reviewed and approved by the end of the calendar year may be a tall order for a process that’s so far taken eight years without reaching a conclusion.
Glenn Smith, Hay River’s town manager, said by email: “The Town of Hay River is pleased to receive notice that the PUB has approved the purchase and sale of the franchise after determining the transaction is in the public interest.
“This is a significant milestone on a journey to reduce the impact of electricity costs to residents and business. The town is continuing to review the PUB’s recent decision and directives to better understand next steps.”
The NWT Power Corporation said it was pleased the transfer can go ahead, adding that it was “still reviewing the decision to assess its impacts on customers as well as on the corporation and next steps required.”
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After this article was first published, Northland Utilities said in a statement: “Northland Utilities acknowledges the Public Utility Board’s decision regarding the Hay River franchise. As we are currently reviewing the decisions, we have no comment at this time. As always, we remain committed to collaborating with all stakeholders to find sustainable energy solutions for the NWT.”
Northland had questioned whether handing over Hay River to the power corporation was really in the public interest, arguing that it would have to find ways to make its NWT operations viable without Hay River’s customer base – and suggesting that could mean much more expensive power for people in other communities it serves.
“The PUB can say: ‘This doesn’t make sense, there could be customers harmed, and we’re not going to approve it,'” Northland’s Jay Massie said in 2022.
In the event, the Public Utilities Board reached the opposite conclusion.
“There is likely to be no material harm arising as a result of the transaction,” the board wrote in a dense and technical 32-page decision, though the PUB said the harm to customers in smaller communities served by Northland might increase if some of the power corporation’s proposals were accepted.
Instead, the PUB said – recognizing NTPC and Northland have spent years advancing rival philosophies and rival sets of figures regarding this transaction – they should both submit new proposals for a definitive PUB ruling on the financial details.
What that means for the actual, final final date by which the power corporation takes control of Hay River’s power distribution, and what that means for how customers’ rates will change, remains to be seen.
The power corporation has pledged that rates will drop in Hay River once it takes over, but Northland has argued that NTPC’s figures don’t add up.
