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Power

Corp.; power rates proposed to rise

Total income in 2021-22 equated to $114.8 million but that wasn’t enough to overtake expenses, which rose to $120.7 million. Expenses from 2020-21 were only $111.7 million. The items that became more costly over the year were thermal generation (an additional $5.9 million), hydro generation

NTPC RESIDENTIAL POWER RATES AS OF APRIL 1 (PER KILOWATT HOUR)

Thermal zone (Aklavik, Colville Lake, Deline, Fort Good Hope, Fort Liard, Fort McPherson, Fort Simpson, Gameti, Inuvik, Jean Marie River, Lutsel K’e, Nahanni Butte, Paulatuk, Sachs Harbour, Tsiigehtchic, Tuktoyaktuk, Tulita, Ulukhaktok, Whati, Wrigley)

Customer pays: 31.08 cents

Actual cost: 70.16 cents

Additional kWh (over 600) between April 1 and Aug. 31: 70.16 cents, plus an NWT stabilization rate rider of 0.9 cents

Norman Wells

Customer pays: 31.08 cents

Actual cost: 54.84 cents

Additional kWh (over 600) between April 1 and Aug. 31: 54.84 cents, plus an NWT stabilization rate rider of 0.9 cents

Behchoko/Dettah

Customer pays: 31.08 cents

Actual cost: 35.92 cents

Additional kWh (over 600) between April 1 and Aug. 31: 35.92 cents, plus an NWT stabilization rate rider of 0.7 cents

Fort Resolution/Fort Smith

Customer pays: 24.52 cents, plus an NWT stabilization rider of 0.99 cents

Actual cost: 24.52 cents

Additional kWh (over 600): 24.52 cents, plus an NWT stabilization rider of 0.99 cents

Source: NWT Power Corporation

NORTHLAND UTILITIES POWER RATES AS OF MAY 1

Yellowknife

23.72 cents/kWh (residential)

Hay River/Enterprise (hydro zone)

32.42 cents/kWh (residential)

Wekweeti/Sambaa K’e/Ft. Providence/Dory Point/Kakisa (thermal zone)

84.15 cents/kWh (residential) — the GNWT’s rate equalization program is applicable to nongovernment residential and general service customers in this zone.

Source: Northland Utilities

($2.1 million extra) and purchased power ($1.1 million more). Diesel prices began rising in the fourth quarter of 2021-22 and remained elevated in 2022-23.

Government contributions in 2021-22 amounted to $25.7 million and that made all the difference in pushing NTPC into the black by $19.7 million instead of what would have been an annual deficit of approximately $6 million based on operations.

The power corporation closed out 2021-22 with an accumulated surplus of $183.6 million.

NTPC, a Crown corporation belonging to the territorial government, provides work for more than 200 employees.

Hydro use rises

Hydro accounted for 76 per cent of NTPC’s generated power in 2021-22, surpassing the 74 per cent recorded the previous year. Diesel was next at 17 per cent, then natural gas at four per cent. Three per cent of power was purchased from elsewhere. Renewable sources of energy were so negligible that they ranked as zero per cent in NTPC’s annual report. However, it’s anticipated that the 3.5 megawatt Inuvik Wind project will reduce costly diesel use by three million litres per year.

The power corporation generated 211 tonnes of carbon dioxide equivalent per gigawatt hour in 2022, up from 174 tonnes in 2021.

Outages

NTPC customers experienced, on average, 12.77 outages in 2022, far higher than the Canadian average. NTPC recorded 10.44 outages per customer in 2021.

However, the average NTPC outage lasted 25 minutes in 2021 compared to the Canadian average of two hours and 18 minutes.

Half of the power corporation’s power outages were due to issues with generation, 40 per cent were due to transmission and 10 per cent related to distribution.

All told, NTPC customers endured four hours and 25 minutes of outages in 2021 while customers elsewhere in Canada put up with five hours and 34 minutes without power.

Assets

In providing power to more than 43,000 residents in 26 NWT communities, NTPC manages $450 million in assets, including 26 diesel plants, three hydro-electric systems, five solar arrays, one battery storage system and a natural gas plant. Total generating capacity is 133 megawatts. This is delivered via 565 km of transmission lines and 375 km of distribution lines running across 9,790 power poles.

Rate hikes

In its March 2022 general rate application, NTPC proposed that rates in the Snare and Thermal zones increase by 2.5 per cent in each of 2022-2023 and 2023-24. In Norman Wells and the Taltson zone, NTPC proposed that rates increase by 10 per cent in each of the two years.

Following public consultations and an assessment by the NWT Public Utilities Board (PUB), non-government, residential rate increases were adjusted, and approved, as follows:

Snare zone: 3.2 per cent

Taltson zone: 4.4 per cent

Thermal zone: 3.1 per cent

Norman Wells: 4.4 per cent

Hay River switch

The Town of Hay River, after several years of negotiations, made a formal application in March to switch power distribution to NTPC from Northland Utilities. NTPC — once it purchases approximately $10.7 million in assets, should regulatory approval be granted — has proposed 18 per cent monthly reductions in power rates for customers who use 1,000 kilowatt hours of power per month. It would put Hay River on equal footing with customers in Fort Resolution and Fort Smith.

Taltson overhaul

In February, NTPC announced that it would begin upgrading the 18 megawatt Taltson hydro-electric facility in April, a project that is expected to cost up to $70 million. The work is anticipated to take six months, which means customers in Fort Smith, Fort Resolution, Hay River, K’atl’odeeche First Nation and Enterprise will be served by diesel generators while Taltson, built in 1965, is temporarily out of commission. With the turbine, generator and other components replaced, the Taltson facility, located 64 km north of Fort Smith, should provide hydro power for another 40 to 50 years.

New plants in Lutsel K’e, Sachs Harbour

A new diesel plant officially opened in Lutsel K’e in January. The new plant replaces one that had reached the end of its service life, having powered the community for several decades. The modern infrastructure is designed to provide more reliable service, reduce greenhouse gas emissions associated with electricity generation by approximately 100 tonnes annually, and allow for the future addition of renewables to the local energy system. Final costs for the plant are expected to be approximately $14.9 million. The project received more than $8.7 million in funding from the Government of Canada through the Investing in Canada Infrastructure Program (ICIP).

A new power plant is under construction in Sachs Harbour. It’s expected to be in use by summer 2024.

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