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City recommends five-year extension of electricity distribution agreement

2205cityhall41.jpg Simon Whitehouse/NNSL photoYellowknife City Hall
2205cityhall41.jpg Simon Whitehouse/NNSL photo Yellowknife City Hall

Yellowknife city council showed support Monday for extending the municipality's franchise agreement with Northland Utilities to distribute electricity to residents for another five years.

The current agreement expires at the end of this year. A new agreement will take the city's term with Northland to Dec. 31, 2025.

Director of corporate services Sharolynn Woodward provided a briefing about electricity distribution and the options around the city's franchise agreement. Electricity costs remain high in the city due to ever-present challenges that include having to generate and transmit power across large swaths of geography; low demand from small, scattered population; and high construction and operation and maintenance costs, she said.

The issue is to be voted on at the Sept. 28 regular council meeting. Once a bylaw is passed, the city and Northland will send a joint letter indicating that an agreement has been reached to the Public Utilities Board, anticipated by mid-October, Woodward said.