GNWT ANNOUNCEMENT OF TEMPORARY ELECTRICITY RATE RELIEF
- Uncertainty related to the impact of climate change is a concern for all utilities, specifically regarding drought conditions and the negative impacts to hydro generation.
- In a normal water year, the North Slave Electrical System receives 95% to 98% of its power from hydroelectricity, with the remainder being generated by diesel to manage system peaks in winter.
- In 2022-23, 86% of the power in the North Slave Electrical System was generated by hydroelectricity and 14% by diesel.
- The volume of diesel consumed in the North Slave has increased over the past due to naturally-occurring low water levels in the Snare/Bluefish system, which reduces the amount of electricity that can be generated by NTPC’s hydro units – in order to meet demand, continuous use of diesel generators at Jackfish has been necessary.
- Rates for NTPC’s approved General Rate Application were developed using the price of diesel in December 2021. Since then, the price of diesel has increased by 40%.
- These increases have taken a year to be reflected in community pricing and took effect as communities have been re-supplied.
- A number of jurisdictions across Canada and around the world have provided financial support to electricity customers, utilities or both in response to the significant increase in the price of fuel over the past year.
- During the last period of low water in 2014-16, the Government of the Northwest Territories mitigated the impact on electricity customers by financing all additional costs borne by NTPC.