Yellowknife
- Today the NWT Power Corporation (NTPC) filed a General Rate
Application (GRA) to the Public Utilities Board (PUB). In the application,
the Corporation outlines a need to increase its revenue by some $16
million in 2001-2002. This additional revenue is needed to meet the
escalating cost of providing safe, reliable electrical energy to customers.
"There have
been a lot of changes in our business environment since the last time
we filed a GRA with the PUB in July 1996," notes Judy Goucher,
Chief Financial Officer of NTPC. "Take the cost of diesel fuel
for example. Most of the communities we serve in the NWT use power generated
by diesel engines. The cost of diesel has increased by over 60%, sending
our costs soaring." Investment in new plant and equipment to meet
the demands of our customers, the cost of borrowing, inflation and a
reduction in sales in the NWT, have all contributed to a higher cost
of operation.
While NTPC's application
seeks greater revenue for the Corporation, the impact on customers will
be cushioned. "Because of the Territorial Power Support Program,
and with the removal of the recent fuel rate rider, most residential
customers for example would likely see an increase in their monthly
power bills of about $20 - $25," says Goucher.
Under the Territorial
Power Support Program (TPSP), the rate paid for the first 700 kWh used
per month by residential customers throughout the NWT is tied to the
Yellowknife base rate - currently 15.76 cents. This is comparable with
rates in other Canadian jurisdictions. "Providing power in the
north is more challenging than in other parts of Canada," noted
Goucher. "Unlike other electricity utilities, we operate a system
of independent power plants, that for the most part are not interconnected
and we service communities and a small customer base spread over a huge
geographic area. Add in harsh weather conditions, and you begin to see
why our employees are justifiably proud of our ability to provide such
reasonably-priced, reliable power even operating in this challenging
environment."
A General Rate Application
process is open and interactive and provides an opportunity for NTPC
and its customers to communicate on the Corporation's business operations.
"Under the direction of the PUB, the Corporation will work with
community and customer representatives to reach an agreement on a revised
schedule of rates that will allow the Corporation to continue to provide
customers with safe, reliable electrical energy" says Goucher.
Because the GRA
process is comprehensive, takes a long time to finalize and reflects
the actual cost of generating and distributing electricity to customers
today, the Corporation has filed a separate application with the PUB
requesting approval to charge customers an interim refundable rate.
"We maintain it is better to pass on the actual cost of service
to customers at the time of delivery" said Goucher. "This
will make the transition from the old rates to the new rates easier
for our customers". Because the cost of items like diesel fuel
have increased so dramatically it is critical that the Corporation maintains
a financial position that in no way jeopardizes continued supply. "Like
every other business the Corporation must operate prudently and with
due regard to its customers" said Goucher. "This is not the
first time that the Corporation has requested approval to charge interim
refundable rates and the Application has been filed with the interests
of customers and the Corporation in mind".
For more information:
Judith
Goucher
Director, Finance & CFO
(867) 874-5234
Peter
Watt
Public Relations Officer
(867) 874-5215
