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Here’s why NTPC wants to increase the cost of electricity in the NWT and what will happen next
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Here’s why NTPC wants to increase the cost of electricity in the NWT and what will happen next

The Northwest Territories Power Corporation (NTPC) says it would have preferred to have “more concrete data” in its recently submitted application to increase the cost of electricity.

“There are quite a few moving parts … which makes it a difficult time to file a pricing request,” said Paul Grant, the company’s chief financial officer.

NTPC last week submitted an application to the territory’s Public Utilities Commission asking to increase the cost of electricity for all its customers by almost 18 percent. The request bundles this new request with a seven percent interim rate increase that already took effect over the summer, for a total increase of 25 percent.

The company is the primary generator and transporter of electricity in the Northwest Territories. It sells some of its electricity to Naka Power which, in turn, sells it to residents and businesses in the Hay River and Yellowknife areas. NTPC is also taking over the distribution process in Hay River.

Grant said NTPC submitted its last rate application in 2022 and is typically required to submit a new one every four years. But this year, he said, the Public Utilities Commission ordered both NTPC and Naka Power to submit a new general rate application as part of the ongoing transition in Hay River.

“We probably would have waited a little while before submitting our next rate request,” he said.

Grant pointed out that the NTPC does not have a full year of data on the electricity produced by the new Inuvik wind turbine, nor on changes in water levels in the territory that can affect hydroelectric production. The company is also renovating the Taltson hydroelectric plant north of Fort Smith.

A hydroelectric dam seen from above.
NTPC’s overhaul of the 60-year-old Taltson Hydroelectric Plant is taking longer and costing more than expected. The work now amounts to $97 million. (Northwest Territories Department of Infrastructure)

NTPC has different types of customers, but it calculated what the monthly increase would look like for non-government residential customers in different areas that consume 600 kilowatt hours of electricity. The increase would be a little more than $33 for people in Yellowknife, a little more than $32 for people in the Snare and thermal zones and almost $38 for people in the Taltson zone.

Why NTPC wants to increase tariffs

The company said the proposed increase stemmed from major issues beyond its control, such as rising fuel prices, low water levels, capital projects and inflation.

When asked to explain in more detail, Grant said he couldn’t “go into detail” about the app, which is hundreds of pages long and has been uploaded. on the council’s website in the form of nine documents.

He was, however, able to provide a little more insight into how the company achieved its overall demand of 25 percent.

Grant said the request was based on what has happened in recent years, as well as what is expected to happen in the future. It uses the current exercise and upcoming exercises as test cases.

He said the price of fuel had increased by 40% since NTPC submitted its last request for general tariffs in 2022, partly due to the conflict in Ukraine. He also said the company was facing a few “big years” of inflation.

“It’s a little bit more under control now, but there’s a big piece of catching up there as well,” he said.

Another factor is the 60-year-old Taltson hydroelectric plant, which NTPC said needed major upgrades that are take more time and cost more than expected – now with a price tag of $97 million.

What is happening now?

Gord Van Tighem, chairman of the Public Utilities Board, said he would review all information from NTPC and decide whether the increase was reasonable. He expects the board to make a decision by the end of the calendar year.

“We will question anything we deem questionable and try to make all the information public, and from there we will make a decision,” he said.

Van Tighem was unable to say when rates would increase, if the increase is approved. That’s something that remains to be determined, he said.

He also said the public would be able to provide feedback on the application, but the Commission was still determining how that process would take place, including whether or not there would be public hearings.

Van Tighem has been chairman of the Public Utilities Board for more than a decade and said he has never seen as large a percentage increase as the NTPC is currently asking for.

The council has rejected the company’s requests in the past. Van Tighem also said the board found about $2 million in NTPC’s 2022 application that was “not supported” and had the application revised before approving it.