The Town of Hay River said on Monday it hopes residents will save up to a fifth on their power bills as it began a 15-year electricity franchise agreement with the NWT Power Corporation.
A protracted legal and regulatory dispute meant a town decision to switch distributors, taken almost a decade ago, only materialized last weekend.
Naka Power’s last day as the town’s power distributor was February 28.
The power corporation plans to offer “rates that are approximately 20 percent lower than rates currently charged in Hay River,” the town stated in a Monday news release, while noting that the final rates are part of a much broader territory-wide application that still needs regulatory approval.
Naka Power has argued that NTPC is using Yellowknife to subsidize lower rates in Hay River, while also telling the regulator that NTPC’s approach will force Naka’s remaining customers in nearby communities to pay more.
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Regulator the Public Utilities Board is expected to decide on rates this summer.
A week ago, the board approved interim rates that will last until the bigger decision is made. Officials associated with the deal have said they expect NTPC’s interim bills to be between 17 and 24 percent lower than Naka Power’s bills were, depending on a household’s consumption.
In a statement, Hay River’s mayor said the town was “proud to announce the final execution” of the agreement with NTPC.
“We extend our sincere thanks to Naka Power and their employees for their decades of service to our community and look forward to working closely with NTPC to continue to build a bright future for Hay River,” Mayor Kandis Jameson was quoted as saying.
