In an attempt to address the rising costs of diesel fuel in the Territory, the Northwest Territories Power Corporation is applying for a collection rider from the Public Utilities Board.
With diesel prices rising, the NTPC is asking for the current 0.9 cents per kilowatt hour (kWh) to be raised to 5.0 cents per kWh. If this were to go through, the rate rider would add an additional $32 on a 750-kWh residential bill. This would be an increase of 13.6% for Taltson customers, and 12.2% for the Snare and Thermal zones under the Territorial Power Support Program.
Since December of 2021, the NTPC has seen a rise in fuel prices of at least 39%. Since then, short term debt has been able to help cover the additional costs, but this is not a sustainable business model that the NTPC will be able to continue.
Should the Public Utilities Board approve of the requested rider, it is expected to be in effect until fuel prices start to decline, or prices are updated in another General Rate Application.
Caroline Wawzonek, the Minister Responsible for the NTPC, stated that by financing fuel costs through the short term debt strategy, the NTPC’s ability to handle affordability concerns has been compromised, making the rider “an unfortunate reality.”
In a statement, Cory Stang, the President and CEO of the NTPC, said that the rise in prices since December of 2021 has made it more expensive to generate power.
“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.”
