The GNWT will provide the NWT Territories Power Corporation (NTPC) with a $48 million subsidy, it was announced in a Dec. 4 news release. 

The subsidy, which will be broken into $12 million portions over four years, is intended to curb power rate increases for residents of the NWT.

"The GNWT recognizes the significant impacts escalating power costs are having on residents, and this subsidy will help reduce those costs," stated Finance Minister Caroline Wawzonek. "We will continue working with NTPC to keep rates as low and manageable as possible while planning for a more sustainable energy future.鈥�

In late October, NTCP announced it had filed a general rate application with the Public Utilities Board (PUB) seeking a rate increase of 17.7 per cent. The proposed 17.7 per cent increase followed a 7.1 per cent interim rate increase that was already approved by the PUB in July, for a total increase of of 24.8 per cent.

The rate increase aimed to ensure that the revenue NTPC collects is sufficient to cover the cost of providing power to its customers now and in the future, in the face of factors such as extremely low water on the Snare River, high fuel prices, large capital projects like the Taltson hydroelectric overhaul, and inflation on goods and services required to maintain normal operations.

The newly announced GNWT subsidy will "offset impacts of rate increases proposed in NTPC鈥檚 general rate application, lowering the proposed rate increase from 24.8 percent to 15 percent," according to the release.

鈥淣TPC has worked hard to keep rates as low as possible but issues beyond our control, such as extreme low water in the Snare Hydro System and high diesel prices, have significantly increased the cost to deliver power to our customers," said NTPC President and CEO Cory Strang. "Additional funding from the GNWT will help reduce the required rate increase in all of our communities.鈥�

NTPC鈥檚 general rate application is currently being reviewed by the PUB. The City of Yellowknife and Town of Hay River have both officially registered as intervenors. Both municipalities 鈥� and any other intervenors 鈥� are required to submit their questions and concerns about the proposed rate increase by Dec. 16.

PUB's review process "will take several months to complete before final rates are approved," the news release stated.