| Q. |
Why
is my bill so high? |
| |
|
| A. |
Most
communities are supplied with electricity which is generated using
diesel fuel. The fuel cost represents about 33% of the total cost
and is directly determined by world oil prices. The cost of operating
and maintaining the generating power plant and the distribution
system adds a further 47%. These are the major costs and because
most communities have a small customer base there is little opportunity
to drive costs down through economy of scale. Therefore the combination
of the high fuel and operating expense, with high costs of facilities
and fewer customers to share the costs, makes the cost of electricity
in NWT and NU higher.
If you are interested
in looking at ways of reducing your power bill click on 'Energy
Conservation for Residents of Canada's North' for recommended
energy efficiency measures and tips. |
| |
|
| |
Top
of Page |
| |
|
| Q. |
Why
is my bill always so late getting to me? |
| |
|
| A. |
The Corporation makes every effort to get bills out
to customers on a timely basis. Bills are dispatched no later than
the next day after they are issued and the Corporation uses Canada
Post as a cost effective method of delivery. In 2001, NTPC decentralized
its billing printing function to the regional centres of Inuvik,
Fort Simpson, Yellowknife, and Fort Smith. This has brought our bill
production closer to our customers and hence reduced delivery times.
In addition, customers can now receive and pay their bills electronically
by using the internet. To sign up for these services please contact
your local NTPC office. |
| |
|
| |
Top
of Page |
| |
|
| Q. |
Why
do I have to pay an administration fee when my account is
overdue? |
| |
|
| A. |
When the Corporation has not received payment within
28 days of the billing date, your account is overdue. When this happens,
the Corporation may send you a notice that your account is in arrears
and is subject for disconnection. There are costs associated with
sending out your disconnect notice. The $25 fee charged to your account
ensures that you pay the costs associated with your late payment,
and other customers in your community who pay their bill on time
do not. |
| |
|
| |
Top
of Page |
| |
|
| Q. |
Can
your linemen read meters? |
| |
|
| A. |
Our
linemen are trained to read meters and in most communities they do
read the meters. |
| |
|
| |
Top
of Page |
| |
|
| Q. |
What
are demand charges? |
| |
|
| A. |
Demand
charges are incurred by large consumers of electricity. They reflect
the cost to the Corporation of being able to provide at any point
in time, 365 days per year, the capacity to meet the instant demand
for the supply of electricity that a customer's operation may require
of the system. |
| |
|
| |
Top
of Page |
| |
|
| Q. |
Could
demand charges be incorporated into the rates? |
| |
|
| A. |
They
could, but it is probably better for customers who incur demand charges
that they be kept separate. Billing demand charges separately provides
the customer with relevant information and a focus for managing their
electrical load. Shifting electrical load can result in cost savings. |
| |
|
| |
Top
of Page |
| |
|
| Q. |
Why
is the cost of power so high in most communities but not in Yellowknife
and Fort Smith? |
| |
|
| A. |
In the NWT the majority of communities are supplied
with electricity, which is generated using diesel fuel. Exceptions
include Yellowknife, Hay River, Dettah, Rae Edzo, Fort Resolution
and Fort Smith. These communities are located near hydroelectric
producing generating facilities, which is a lower cost method of
power production. |
| |
|
| |
Top
of Page |
| |
|
| Q. |
Why
are diesel communities paying for the fuel rider and Yellowknife customers
are not and yet diesel community customers had to pay the low water
rate rider? |
| |
|
| A. |
In
1992 the Corporation applied to the Public Utilities Board (PUB) for
a rate rider because of low water conditions on our Snare/Yellowknife
hydro system. The application requested that the rider be collected
from Snare/Yellowknife system customers. However the PUB determined
that all customers should share in the cost. During it's 1995/98 General
Rate Application, the Corporation, its customers and the PUB agreed
to set up a number of separate stabilization funds and there now exists
separate funds for diesel communities and for the Snare/Yellowknife
hydro and diesel system. Under the separate fund system which is now
in place, customers in Yellowknife do not pay for the diesel community
fuel impact, and customers in diesel communities do not pay for any
impacts from a low water year. |
| |
|
| |
Top
of Page |
| |
|
| Q. |
How
does the Territorial Power Support Program (TPSP) work? |
| |
|
| A. |
This is a territorial government program designed
to provide equitable power rates throughout the Territories aimed
at supporting the development of northern business and to encourage
private home ownership.
The TPSP has two major subsidy groupings:
a) Residential users are provided up to a maximum of 700 kilowatt
hours of monthly subsidization where the individuals are responsible
for paying their own power bills; and
b) General Service users are provided up to 1,000 kilowatt hours
of monthly subsidization where their annual gross revenues do not
exceed 2 million dollars.
Under both subsidy groups, the subsidy is based on the difference
between the Yellowknife rate and the applicable community rate.
For more information
on this program please refer to ‘Residential
Accounts – Subsidies’ for Residential customers, and ‘Business
Accounts – Subsidies’ for business customers.
|
| |
|
| |
Top
of Page |
| |
|
| Q. |
Why
is only 700 kWh subsidized as I need
more
than this? |
| |
|
| A. |
This figure relates to Residential users and is
set by the GNWT. In setting this level of subsidization, the GNWT
considered the following criteria:
a) In order to discourage wasteful use, subsidies should be in
a form that does not hide the real costs of electricity;
b) Subsidies should be sufficient to make electricity affordable,
without discouraging conservation; and
c) Subsidies should not discourage homeownership.
Further information regarding this program can be obtained from:
Power Subsidy Program
Department of Finance
Government of Northwest Territories
Box 1320
Yellowknife, NT
X1A 2L9
|
| |
|
| |
Top
of Page |
| |
|
| Q. |
Why
don't you move the power plant from the centre of the community? |
| |
|
| A. |
Moving
a power plant from an existing site will cost a significant amount
of money. Given that electricity rates are now determined by assessing
the cost of operation in each community, any decision to move a power
plant would need to consider all the relevant costs and how these
costs will impact on the electricity rates that will be charged to
customers. The desire to move a power plant from the centre of a community
is normally associated with the noise and emission created by the
plant. The Corporation is working hard to develop cost effective solutions
to these problems, thereby providing the community with an alternative
to re-locating the power plant. |
| |
|
| |
Top
of Page |
| |
|
| Q. |
How
are electricity rates set? |
| |
|
| A. |
Electricity
rates are set through a process called a General Rate Application.
The Application is prepared by the Corporation and is considered
and approved with or without amendments by the Public Utilities
Board. The process of preparing and filing the Application involves
considerable community and customer participation.
For more information
refer to 'Bulletin Board - Current
Issues - General Rate Application' at our web site, www.ntpc.com. |
| |
|
| |
Top
of Page |
| |
|
| Q. |
How
come the bills for streetlights do not come down in the summer months? |
| |
|
| A. |
Billing
for streetlights is averaged across a 12 month period - therefore
the monthly amount does not change unless there is a change in the
number or type of lights in use, or electricity rates change. |
| |
|
| |
Top
of Page |
| |
|
| Q. |
What
functions are performed at the Hay River head office? |
| |
|
| A. |
At Head Office there are a number
of business support functions which are critical components of
the overall operations:
- Personnel procedures & policies,
staff training, recruitment
- computer systems, telecommunications
- financial management, credit control, internal audit
- generation and distribution engineering operations
- rate design, electricity load forecasting
- environmental management
- public relations and communications
|
| |
|
| |
Top
of Page |
| |
|
| Q. |
On
my power bill there is an item - basic electric charge - what does
this cover? |
| |
|
| A. |
The
basic electric charge covers that portion of the charge for service
which does not vary with the level of Demand or Energy consumption.
This charge is assessed to partially offset the various fixed costs
associated with the provision of service such as service lines, meter
readings and billing of accounts. |
| |
|
| |
Top
of Page |
| |
|
| Q. |
What
options are available to me for paying my power bill? |
| |
|
| A. |
- Mail you payment to your local NTPC area office
- Via telephone bill payment services provided by your bank.
- Pay in person at your local NTPC plant or area office
- Payments can also be made at most local Co-op and Northern Stores
- Via the internet at your
banks website.
|
| |
|
| |
Top
of Page |
| |
|
| Q. |
Why
am I charged a fuel rider? |
| |
|
| A. |
Traditionally
electricity rates have been reviewed about every three years through
a General Rate Application resulting in new rates being set and
approved by the Public Utilities Board (PUB).
The cost of
diesel fuel is a major component of the rates that customers pay
for diesel generated electricity and the price of diesel fuel is
dictated by world oil prices over which the Corporation has no control.
Therefore rather
than change electricity rates because of fluctuating oil prices,
the PUB, customers and the Corporation agreed to the concept of
a fuel rider. A fuel rider is designed specifically to recover from
customers the additional fuel costs incurred by the Corporation
or in the case where fuel prices decrease below the forecasted costs
included in the rates, the Corporation would apply to the PUB to
refund customers.
For more information on fuel riders and the 'Fuel Stabilization
Fund' please refer to the Fuel
Stabilization Fund FAQ. |
| |
|
| |
Top
of Page |
| |
|
| Q. |
What
is the Fuel Stabilization Fund? |
| |
The
Fuel Stabilization Fund is set up so that as the price of fuel goes
up and down, your power rates stay the same. The fund is in place
to protect both the Power Corp and you, the customer.
To answer your
many questions, the corporation has prepared a document titled Fuel
Stabilization Fund FAQ. |
