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Power Rate Balancing Continues into Third Year

Hay River, NT (March , 1999)
Domestic power customers in some smaller communities will see rates increase, while commercial and government rates in many communities will go down, as a series of rate adjustments takes affect across the NWT and Nunavut March 29.

This year's changes are the third of a five-year program to gradually balance rates to reflect the actual cost of delivering power services, says the NWT Power Corporation. Total revenues for the Corporation will not increase or decrease in this process.

Judith Goucher, Director of Regulatory Affairs for the Corporation, said the program was approved by the NWT Public Utilities Board in a 1997 decision after extensive consultation and public hearings with customers and communities.

“The purpose is to eliminate what generally amounts to a domestic subsidy, from government and business customers who are paying more than their share of costs. By 2001, the balancing will be complete,” she said.

The Corporation has over 200 different rates in the 50 communities it serves. Once completed, the balancing will merge all government and non-government customer classes into basic domestic or commercial categories.

Depending on where they live, some domestic customers will see the maximum allowable 15 per cent raise in rates. Decreases, mainly in commercial and government sectors, range from under one per cent to 10 per cent. Customers in each community will receive detailed information in this month's power bills.

This latest round of rate balancing does not affect Yellowknife or Hay River, or other communities served by Northland Utilities Ltd.

The Territorial Power Support Program for homes and businesses is unaffected. The Corporation will continue to administer the program for the NWT Government, and pending approval of a transition agreement, for the Nunavut Government, after April 1.