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Diesel Fuel Rider Application Hay River (December 1, 2004) -- The Northwest Territories Power Corporation, (NTPC) announced today that they will be making an application to the NWT Public Utilities Board (PUB) for a rate rider to recover the balance owing on the Diesel Fuel Stabilization Fund from the communities that are solely served from diesel generation. The Fund surpassed its trigger amount of $1 million on October 31, 2004. Since March 2002, the price per barrel of West Texas Intermediate crude has gone from $24US to today’s price of over $49US. This increase of more than 100% in a two year period is the reason why NTPC has had to make this “diesel rider” application to the PUB. The Fuel Stabilization Fund is designed to track variations in diesel fuel prices from what is being recovered through current electricity rates. The intent of the Fund is to keep electricity rates constant in the face of ever-changing fuel prices. The Fund has limits which “trigger” either a collection or refund to customers depending on the direction of the fuel price changes. The last time NTPC had to apply for a “diesel rider” was in 2000/01. NTPC has received confirmation from the Government of the Northwest Territories, (GNWT) that the “diesel rider” will be covered under the Territorial Power Support Program, (TPSP) subsidy. For the majority of NTPC’s residential customers that means they will not see any increases in their power bill if their consumption of power stays below 700 kWh per month. General Service customers who qualify for a subsidy will need to apply to the GNWT for reimbursement of the rider amounts as per the terms of the TPSP. NTPC is consulting with the various diesel communities affected by the proposed rider and will be making an application to the PUB following those meetings. The Corporation is providing several options for consideration and is recommending a 3.46 cent/kWh rider to be collected over a 12 month period starting February 1, 2005. Separate Funds are in place for Yellowknife, Norman Wells and Inuvik. These Funds are forecasted to reach their “triggers” in the spring of 2005. Rider applications for those communities will be made at that time following a similar community consultation process. For more information please contact: Terence Courtoreille or Vaughan Slade |