Hay River, Friday
16 August – The Northwest Territories Power Corporation received
a decision yesterday from the Public Utilities Board declining the Corporation’s
application for a shortfall rate rider and an increase in their interim
refundable rate schedule.
In its decision
the PUB stated that there is an approved rate structure in place that
the Corporation must continue to adhere to until changed through the
formal regulatory process.
“We are disappointed
in the decision” said Judith Goucher, Director, Finance and CFO,
“as we believe that the formula we had used to calculate the shortfall
rider and the increase in the interim rates was fair to customers and
would be relatively simple to adjust after final rates are approved
at the end of the General Rate Application process.”
Based on questions
received by the Corporation during consideration of the application,
it would seem that the PUB heard from customers in larger centres but
not from customers in the smaller communities who would have been the
beneficiaries of the proposed approach.
“To us this
emphasizes the need for those smaller communities to actively participate
in the process and to that end the Corporation will be holding a number
of regional meetings with community leaders to provide information on
how they can get involved and what each community might face depending
on the rate design option that is finally approved”, Goucher said.
In the application
the Corporation had proposed that customers share equally in the recovery
of a revenue deficiency for last year through charging a 2cent per kWh
rider, and that similarly, with the interim rates, a flat 10% increase
be applied to all community rates.
The PUB, in the
decision announced yesterday, has asked the Corporation to submit another
application within 21 days for a shortfall rider and an increase in
interim rates, calculated using the existing rate design model. The
utility will comply with this request.
The Corporation
plans to file Phase II of the General Rate Application with the PUB
by mid-September.
For
more information please contact:
Judith
Goucher
Director, Finance & CFO
(867) 874-5234
or
Peter
Watt
Public Relations Officer
(867) 874-5215
