Reject the NTPC's Proposed 13% Rate Increase!

The NTPC wants to increase electricity rates for all customers in the NWT by 13% for at least the next two years. The reason is that the Snare hydro plant is no longer providing enough power due to low water levels and the shortfall is being provided by burning a much larger than expected amount of diesel at the Jackfish plant. This will result in an additional 20 million dollar cost that the NTPC wants you and me to pay for. We aren’t disputing the extra cost of the fuel, but do have a problem with the fact that the NTPC wants to shift the burden onto the backs of consumers as “just the cost of doing business”

Why should we reject the rate increase?

1)      We already pay the highest cost for power in the country, often several times over. Most of Canada pays between 6 – 14 cents per kilowatt hour whereas we usually pay over 30 (at least)

2)      NTPC has already been approved for a 26%!!! rise in rates between 2012 – 2015 (7 % per year between 2012- 2014, est. 5 % in 2015) in addition to us already having the honor of paying the most for power in Canada.

3)      The Big Picture- Cost of living in the NWT is already too high and driving people away. Last year NWT was one of the few areas of Canada that saw population decline, in addition to the loss of 1,200 jobs. The higher the cost of living, the fewer people will want to come and stay here, which creates a vicious downward cycle: fewer people = less revenue for services = higher rates for remaining people = fewer people and so on. We want to build and grow the North, not strangle it.

4)      As consumers, we’re already tapped out. This year alone, property taxes, fuel oil, food, etc have all increased significantly. Did your paycheque rise to match these costs? For most people, that answer is no.

5)      This is a stop-gap, reactive measure that doesn’t address the real issue. What if water levels continue to be low or unpredictable in coming years? Will we just continue to raise rates then and hope that diesel generation can meet demand?

What we’re asking:

We ask the PUB (Public Utilities Board of the Northwest Territories) to reject the proposed rate increase filed by the NTPC on September 3, 2014 “Snare Low Water Rider Application”

We ask the PUB to direct the NTPC to develop options (in tandem with whatever parties they may deem necessary, without placing significant additional burden on consumers) that address not just the short term problem of increased diesel costs but also the long term strategic future of the NWT’s power infrastructure

Principal Petitioner: Aaron Reid

Signatory Requirements: Resident of the Northwest Territories