The NWT government confirmed on Wednesday that it will send the territory’s power corporation $12 million a year to reduce a 25-percent rate hike NTPC had requested.
Cabin Radio reported last month that the territory was considering the measure, which will add up to $48 million over four years.
In a Wednesday news release, the territory said the subsidy was “in direct response to escalating power costs across the NWT.”
The money is designed to bring down power rate increases from the 25-percent year-on-year hike requested by NTPC to a figure more like 15 percent. (The exact impact may vary depending on the region and type of customer. Parts of NTPC’s request are still being scrutinized by regulator the Public Utilities Board, which may yet further change the math.)
“The GNWT subsidy represents a strategic investment to help manage the cost of living in the NWT. The investment is needed due to rising electricity costs that have been exacerbated by inflation, energy price volatility and the impacts of climate change,” the territory’s news release continued.
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Finance minister Caroline Wawzonek said the GNWT would “continue working with NTPC to keep rates as low and manageable as possible while planning for a more sustainable energy future.”
Cory Strang, NTPC’s president, said the power corporation had “worked hard to keep rates as low as possible” but needed more revenue to cover issues like extremely low water in the Snare hydro system and high diesel prices.
“Additional funding from the GNWT will help reduce the required rate increase in all of our communities,” Strang was quoted as saying.
Even so, a 15-percent power rate increase would remain a significant jump.
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The power corporation has had multiple incremental increases approved by the Public Utilities Board in what it says is a bid to take the edge off the overall increase.
The latest of those increases took effect on Sunday having been approved last week. It was billed as a 5.5-percent average increase for some North Slave and South Slave communities, though the detail of that interim increase is complicated and Cabin Radio is awaiting guidance from the power corporation on the ultimate impact to your bill.
The territorial government had already given the power corporation extra cash amounting to some $45 million in recent years to deal with problems like low water and high diesel prices. With the new subsidy, the sum given to NTPC over six years will approach $100 million in additional funding.
