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13 Apr 2022

Notice Notice of Hearing

Northwest Territories Power Corporation –  NT

Job Description

Notice of Hearing

Northwest Territories Public Utilities Board

Re: 2022-23 General Rate Application by the Northwest Territories Power Corporation (NTPC)

The Board received an application dated March 30, 2022 from NTPC, requesting rate adjustments over two years as follows:

• Thermal Zone – 2.5% increase in 2022-23 and a further 2.5% increase in 2023-24 to all customer classes
• Snare Zone – 2.5% increase in 2022-23 and a further 2.5% increase in 2023-24 to all customer classes
• Taltson Zone – 10% increase in 2022-23 and a further 10% increase in 2023-24 to all customer classes
• Norman Wells (as rates transition into the Thermal zone) – 10% increase in 2022- 23 and a further 10% increase in 2023-24 to all customer classes

By way of an Interim Rate Application dated March 30, 2022, NTPC requested that the increases applicable to the 2022-23 year be approved effective May 1, 2022.

The last time an increase in rates was approved by the Board for NTPC, was in the context of the NTPC 2016/2019 General Rate Application. The overall average revenue increases that were approved at that time were 4.8% in 2016/17, 4.0% in 2017/18 and 2% in 2018/19. The above rate increases, varied by rate Zone and by customer class.

The reasons for the current rate increases requested by NTPC include the following:
• Operating cost increases making up $5.6 million of the increase due to general inflation supply chain challenges and COVID disruptions
• Fuel and purchased power increases total $3.4 million primarily due to fuel price increases since the last GRA offset by improvements in the mix of fuels, as more natural gas and renewables are brought online.
• $1.5 million overall costs to finance and depreciate capital investment

NTPC indicates the proposed interim rate increases effective May 1, 2022, would result in the following bill impacts for non-Government residential and non-Government general service customers:

Non-Government Residential Bill Impact

1000 kWh consumption      Current      Bill at Interim Rates           Increase
Yellowknife                                    332.07           337.91                                      5.84            1.8%

Snare                                               374.70            384.20                                     9.50           2.5%
Snare after TPSP                          323.99            329.69                                     5.69           1.8%

Thermal                                           710.70            728.60                                     17.90          2.5%
Thermal after TPSP                      323.99            329.69                                     5.69           1.8%

Norman Wells                                561.30            617.70                                     56.40          100%
Norman Wells after TPSP           323.99            329.69                                     5.69           1.8%

Hay River                                        360.67            373.15                                     12.48          3.5%
Hay River after TPSP                    337.87            344.04                                     6.17           1.8%

Fort Smith/Resolution                 266.50           292.80                                   26.30           9.9%

Note: Yellowknife and Hay River bill impact estimates are based on wholesale rate change to NUL(Yk) and NUL(NWT).

Non-Government General Service Bill Impact

3000 kWh consumption     Current      Bill at Interim Rates            Increase

Yellowknife                                   856.09           873.94                                     17.85         2.1%

Snare                                             1132.10           1160.30                                    28.20        2.5%

Thermal                                        1865.00          1910.90                                   45.90         2.5%

Norman Wells                             1579.40          1736.00                                   156.60         9.9%

Hay River                                      742.98           780.42                                     37.44         5.0%

Fort Smith/Resolution               674.90           741.80                                     66.90         9.9%

Note: Yellowknife and Hay River bill impact estimates are based on wholesale rate change to NUL(Yk) and NUL(NWT).

If you wish to intervene or simply comment on the applications, you may write to the Board as per below, by April 19, 2022, stating your name, contact details, whom you are representing, the reasons for your objections or support for the applications and your expected level of participation in the proceedings:

Board Secretary, 203-62 Woodland Drive, Box 4211, Hay River, NT X0E 1G1 Email: Doris_Minoza@gov.nt.ca

Further details respecting the applications, the schedule and the intervention process re set out in the Board’s website at www.nwtpublicutilitiesboard.ca

Job Types: Notice. Advertised until: 2022-05-13

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