Inuvik Gas Ltd says it is increasing natural gas distribution charges by $10 per gigajoule in September.
The price hike will move the residential and general service charge from $35.44 per GJ to $45.44, stated a Monday news release issued by Atco, of which Inuvik Gas is a subsidiary.
That equates to an increase of 28.2 percent.
When the rate was last altered was not immediately clear. The website of Inuvik Gas states the $35.44 rate was current “as of February 2013.”
“The rate increase reflects the investments and work required to keep energy flowing reliably to Inuvik,” the company stated on Monday.
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“IGL has made significant improvements to its energy infrastructure and operations. These improvements were driven by a significant decline in natural gas production from the Ikhil Joint Venture well, as well as operational challenges including extreme cold weather events and periodic road closures that affected the reliability of propane deliveries to the community.”
For weeks this past winter, Inuvik residents were urged by the company to conserve their gas where possible.
During a bitterly cold spell in early January, the company said the town was down to five days of propane after road closures and other issues affected its supply.
Inuvik Gas now says it has “taken the appropriate steps to strengthen our energy security,” including a 75-percent increase in propane storage capacity.
“We remain the most cost-effective energy source for the community,” the company asserted.
In the longer term, the Inuvialuit Energy Security Project – which is under construction – is billed as a source of cheaper natural gas from a well between Inuvik and Tuktoyaktuk. Right now, much of Inuvik’s fuel is brought in by truck from the south.
