Power bills from diesel electricity generation may be rising significantly after the Northwest Territories Power Corporation (NTPC) applied to the Public Utilities Board (PUB) to increase the rate, citing higher than expected diesel prices.
“As the result of diesel prices continuing to be higher than forecast when rates were set during the most recent general rate application, NTPC is requesting that the existing 0.9 cents per kilowatt hour (kWh) fuel rider be increased to five cents per kWh,” said NTPC communications manager Doug Prendergast. “If approved by the PUB, the rate rider would result in an additional $32 on a 750-kWh residential bill. This represents a 13.6 per cent increase for Taltson customers and a 12.2 per cent increase in the Snare and thermal zones for residential bills eligible under the Territorial Power Support Program.
“NTPC’s cost of fuel has increased by an average of 39 per cent per litre since December 2021 when the cost of fuel was set for current electricity rates. Short-term debt has been used to cover the additional costs incurred due to high fuel costs, but this is not sustainable over the long-term.”
A four-year break on carbon tax for home heating with diesel fuel is set to kick in April 1 and stay in effect until 2027.
NTPC is owned by NT Hydro, which is owned by the GNWT.
A 2020 report from Energy Hub found the NWT already pays the highest rate for electricity in Canada.