Hay River - The NWT
Public Utilities Board (PUB) has approved the General Rate Application
Phase I Negotiated Settlement Agreement that was filed by the Northwest
Territories Power Corporation (NTPC) with the PUB on November 20, 2001.
The PUB's decision
confirms the total revenue that NTPC requires to provide customers with
service, and for 2001/2002 it is just over $63.5 million and for 2002/2003
the Corporation can earn total revenue of $66.6 million.
Although the PUB
has approved total revenue for both the current year and next year that
is less than originally applied for, the outcome is consistent with
the agreement reached between NTPC and its customers.
'We agreed with
the Intervenors to change how we calculate depreciation, we reduced
the fuel price forecast and we agreed to adopt a more flexible arrangement
for spreading the cost of engine overhaul work. These factors, plus
a lower return on equity, were the main adjustments that allowed the
negotiating parties to agree on a lower total revenue amount' said Judy
Goucher, Chief Financial Officer for NTPC. 'We are pleased to have received
this approval which will now allow the Corporation to turn its attention
to Phase II - the rate setting phase of the GRA process'.
Customers will recall that when NTPC filed it's GRA in May 2001, at
the same time it filed a separate application with the PUB requesting
approval to charge customers an interim refundable rate. It is anticipated
that these rates will remain in effect until new rates are approved.
It is expected that
Phase II of the GRA process will be finalized in about six months.
For more information:
Judith
Goucher
Director, Finance & CFO
(867) 874-5234
or
Peter
Watt
Public Relations Officer
(867) 874-5215
(867) 874-1288 (cell)
