HAY RIVER, NT (March 15, 2019) – The Northwest Territories Power Corporation (NTPC) has applied to the Public Utilities Board (PUB) for a collection rider as the result of diesel prices continuing to be higher than forecast when rates were being set during the most recent General Rate Application. If the PUB approves the proposed three year collection period, a typical residential customer will have an average bill increase of approximately 2.5% or $8 a month.
The collection rider is necessary to ensure that the Rate Stabilization Fund (RSF) is in good financial condition. The RSF helps to keep electricity prices stable when the price of fuel fluctuates dramatically or the generation mix (hydro/gas/purchased power/diesel) differs from what is built into rates. When the price of fuel is high, the balance in the fund increases. Eventually NTPC needs to collect more from customers in order to drawn down the balance of the RSF. The price of diesel is currently $0.08 - $0.09 more per litre than the cost used to calculate rates.
“Power rates play a significant role in the cost of living in the North,” said NTPC Interim President & CEO, Paul Grant. “This is why we are asking the PUB for approval to keep this rate rider in place for three years, which will reduce the monthly impact on our customers.”
NTPC is a wholly owned subsidiary of NT Hydro, which in turn is 100 percent owned by the Government of the Northwest Territories.