Mayor calls utilities board decision on NTPC rate a win for N.W.T. communities
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Power corporation must rework application by the end of July
The mayor of Fort Smith, N.W.T., is applauding a recent decision by the territory’s public utilities board to deny part of the Northwest Territories Power Corporation’s (NTPC) request to increase rates.
“I think this is a win for fairness,” said Mayor Dana Fergusson.
“Communities like us in Fort Smith, we shouldn’t be punished for delays and costs beyond our control, like fires, mismanagement, or construction delays.”
Last week, the territory’s Public Utilities Board (PUB) published its decision regarding NTPC’s general rate application, denying a proposed salary increase expense of nearly $200,000 for the utility’s management.
NTPC had also proposed recovering millions in costs by increasing rates for customers across the territory. While the utilities board approved some costs, others were denied.
The general rate application was the subject of a lengthy regulatory process and a hearing in April. Fergusson said pressure from intervenors on behalf of Fort Smith, Hay River and Yellowknife played an important role in utilities board’s decision this week.
“It shows that when communities like us speak up, it matters. And Fort Smith, we’re going to continue to do this and stand up for our ratepayers in our community and demand better energy planning,” said Fergusson.
“I think it’s great that the PUB looked closely at these things and said, ‘wait, we need more justification.'”
High costs already driving residents elsewhere
NTPC’s application has fluctuated in how much electricity rates could be raised. Parts of the increase have previously been approved in interim rate decisions. NTPC is currently proposing a 15 per cent increase to electricity rates.
The corporation must now submit a revised application reflecting all of the changes directed by the utilities board, which will then determine final rates.
For many people in the territory, the cost of power is already too high. Martin Male, a longtime Yellowknife resident, says high bills are already influencing long term residents to move elsewhere, including himself.
“It’s brutal. It’s one of the reasons we’ll be retiring outside of Yellowknife…I don’t know how people manage to pay for heating and power on a regular income,” said Male.
Male, who has worked in IT, said frequent power outages also make it difficult for businesses to stay afloat.
“You come in the next day trying to get everything started back up. The first year I lived here, the power went out 57 times.”
Francis Chang, who’s lived in Yellowknife since 1976, said he’s seen his bill jump from $75 a month to over $375, despite efforts to save energy. He said he also knows multiple retirees who are selling their homes and moving south.
“You switch to LED lights, turn things off, buy efficient appliances and you’re still paying more,” said Chang. “What am I actually paying for? The power? Or all the riders and extra fees?”
Fergusson said she also wants to know what the basic cost to produce power is.
“What does it actually cost to produce power in Fort Smith, using the Taltson Dam, not just diesel…Until we get that answer, I don’t know how they justify new rates.”
Related stories from around the North:
Canada: N.W.T. utilities board cuts NTPC salary increase, rejects some costs in rate application decision, CBC News
Norway: Will the green transition be the new economic motor in the Arctic?, Eye on the Arctic
Sweden: Sweden’s climate policies closer to reaching goals, Radio Sweden
