Hay River, Northwest Territories, February 16, 2024 – The Northwest Territories Power Corporation (NTPC) has applied to the Public Utilities Board (PUB) for a collection rider to address the high cost of diesel.
As the result of diesel prices continuing to be higher than forecast when rates were set during the most recent General Rate Application, NTPC is requesting that the existing 0.9¢ per kilowatt hour (kWh) fuel rider be increased to 5.0¢ per kWh. If approved by the PUB, the rate rider would result in an additional $32 on a 750-kWh residential bill. This represents a 13.6% increase for Taltson customers and a 12.2% increase in the Snare and Thermal zones for residential bills eligible under the Territorial Power Support Program.
NTPC’s cost of fuel has increased by an average of 39% per litre since December 2021 when the cost of fuel was set for current electricity rates. Short-term debt has been used to cover the additional costs incurred due to high fuel costs, but this is not sustainable over the long-term.
If approved, the rider is forecast to be in effect until fuel prices decline or when prices are updated in the next General Rate Application.
NTPC is a wholly owned subsidiary of NT Hydro, which in turn is 100 percent owned by the Government of the Northwest Territories.
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Quotes
“Customers are demanding that NTPC move forward with more renewable generation and less reliance on diesel generation, needs that are further highlighted by this application to the PUB. By financing high fuel costs through short-term debt, NTPC’s ability to meaningfully address affordability and reliability is compromised, making this collection rider an unfortunate reality. As the Minister Responsible for NTPC, I’m committed to finding a fiscally sustainable path forward.”
Caroline Wawzonek, Minister Responsible for the Northwest Territories Power Corporation
“The price of diesel rose significantly in 2022 due to supply shortages created by war in the Ukraine and refining constraints. Prices have not returned to the December 2021 price on which current electricity rates were based. This has made it more expensive to generate power than we are able to collect through rates. In order to mitigate against this type of situation, we are committed to reducing our reliance on diesel as one of the core objectives of our Strategic Plan.”
Cory Strang, President and CEO of the Northwest Territories Power Corporation
Quick Facts
- Diesel used for electricity generation is exempt from the carbon tax.
- The Territorial Power Support Program ensures that all NWT households can, with modest energy saving efforts, pay the same low power rate as Yellowknife.
For media inquiries, please contact:
Doug Prendergast
Northwest Territories Power Corporation
867-874-5202