Residents across the Northwest Territories are waiting to see if life will become more expensive as a result of the power corporation’s proposed rate hike.
The Northwest Territories Power Corporation’s (NTPC) has applied for a rate increase of nearly 18 per cent across the entire territory. This comes soon after a seven-per-cent increase that was implemented in the summer.
The NTPC says the proposed rate hike comes as a result of extreme low water levels disrupting hydro power, increasing diesel prices, inflation and the costs to large capital projects like the overhaul of the Taltson hydro facility.
However, the proposed hike is not sitting well with many residents and community governments across the territory, from Yellowknife to Nahanni Butte to Ulukhaktok. Residents say they are already paying extremely high prices for necessities like groceries and gas, and that higher power bills will be too much.
Yellowknife municipal costs
Stephen Van Dine, Yellowknife’s city manager, said the city’s administration and council are worried about the toll of this rate hike on residents.
“The cost of living is high anyway and when they’re increasing the cost of living … Residents really will feel the impact,” he said.
The city operates numerous large buildings that consume a significant amount of power, including the multiplex, the arena, the pool, and the soon-to-open aquatic centre. Van Dine said if the rate hike goes forward, the costs of operating all those facilities will go up.
Territorial legislation requires the city to have a balanced budget, Van Dine said. That mean any additional operating costs will need to be offset, likely though user fees or higher taxes — but Van Dine said it’s up to council to decide how it’s done.
“I know council is always vigilant on making sure that Yellowknife provides good quality services at a reasonable cost,” he said.
Van Dine said the city is in the process of developing its budget, but is obligated to use the current power rates while developing it. This means if the rate increase goes ahead, the city would need to make an “adjustment” in the new year.
‘It’s just insane’
Lory-Ann Bertrand lives in Nahanni Butte, N.W.T., and is about to move into her own home with her child and partner. She says she is very excited to make the move, but is stressed about the potentially higher bills.
“We’ll be on our own for the first time, so it’s very unfortunate,” she said.
“We’ve been living with my parents since my son was very small, so we kind of cut the bill between my family and my parents as well.”
She expects the increase could raise her monthly bill by as much as $100 to $200.
This comes in combination with increasing grocery and gas prices — necessities that she has no choice but to pay for.
“Grocery prices increasing, on top of that power increasing — it’s just insane,” she said.
Joshua Oliktoak, mayor of Ulukhaktok, N.W.T, agrees with Bertrand and says that the rising costs of goods and services are making life difficult for people in his community.
“It’s hard enough already for us,” he said. “Gas is crazy to buy right now, and food doesn’t seem like it’s going down.”
Oliktoak has never seen an application for a power rate increase this large. He says if it’s accepted, the government will need to offer a subsidy as costs are already too high.
“Any rise in any costs affects our community in a hard way,” he said.
It’s now up to the territory’s public utilities board to decide whether NTPC’s proposed rate hike is reasonable, and there have been past cases where an application for a rate hike has been rejected.
