Residents of the Northwest Territories are waiting to see if life will become more expensive as a result of the energy corporation’s proposed rate increase.

The Northwest Territories Electric Corporation (NTPC) has requested a rate increase of nearly 18 percent territory-wide. This comes shortly after a seven per cent increase that was implemented in the summer.

The NTPC says that proposed rate increase It arises as a result of extremely low water levels disrupting hydropower, rising diesel prices, inflation and the costs of large capital projects such as the Taltson hydroelectric facility overhaul.

However, the proposed hike doesn’t sit well with many residents and community governments across the land, from Yellowknife to Nahanni Butte to Ulukhaktok. Residents say they are already paying extremely high prices for necessities like food and gasoline, and that higher energy bills will be too much.

Yellowknife Municipal Costs

Yellowknife City Manager Stephen Van Dine said city administration and council are concerned about the cost this rate increase will have on residents.

“The cost of living is high anyway and when they increase the cost of living…residents will really feel the impact,” he said.

The city operates numerous large buildings that consume a significant amount of energy, including the multiplex, arena, pool, and soon-to-open aquatic center. Van Dine said if the rate increase continues, the operating costs of all those facilities will increase.

Territorial law requires the city to have a balanced budget, Van Dine said. That means any additional operating costs will have to be offset, likely through user fees or higher taxes, but Van Dine said it’s up to the council to decide how that’s done.

“I know council is always vigilant in making sure Yellowknife provides good quality services at a reasonable cost,” he said.

Van Dine said the city is in the process of developing its budget, but is required to use current electric rates as it develops it. This means that if the rate increase goes forward, the city would need to make an “adjustment” in the new year.

“It’s just crazy”

Lory-Ann Bertrand lives in Nahanni Butte, NWT, and is about to move into her own home with her son and partner. She says she’s very excited to make the decision, but is stressed about the potentially higher bills.

“We’ll be alone for the first time, so it’s very unfortunate,” he said.

“We’ve lived with my parents since my son was very little, so we also reduced the bill between my family and my parents.”

She hopes the increase could increase her monthly bill by $100 to $200.

This is combined with rising food and gasoline prices, necessities that she has no choice but to pay for.

“The increase in grocery prices, on top of that increase in power, is just crazy,” he said.

Joshua Oliktoak, mayor of Ulukhaktok, NWT, agrees with Bertrand and says the rising costs of goods and services are making life difficult for people in his community.

“It’s hard enough for us,” he said. “It’s crazy to buy gas right now and it doesn’t look like food is going to go down.”

Oliktoak has never seen a request for such a large energy rate increase. He says if it is accepted, the government will have to offer a subsidy because the costs are already too high.

“Any increase in costs hits our community hard,” he said.

It is now up to the territory’s public services board to decide whether NTPC’s proposed rate increase is reasonable, and there have been cases in the past where a request for a rate increase has been rejected. been rejected.