N.W.T. gov't spends $15M to help cover rising cost of electricity

The government of the Northwest Territories is giving $15.2 million to the territory's power provider, to help offset the rising cost of electricity.

The one-time contribution to the Northwest Territories Power Corp. (NTPC) is a temporary measureintended to "keep consumer electricity bills at their current levels," according to a government news release on Friday.

The release cites two reasons for the rising cost of providing power: hydroelectric facilities dealing with low water, and the price of fuel.

It says the Snare and Bluefish hydroelectric facilities, which supply power to Yellowknife, Behchok and Dettah,are dealing with low water this yearmeaningNTPChas to generate more power from diesel generators.

At the same time, the price of fuel has increased significantly in the past year and a half. Without the government's $15.2-million grant, NTPCcustomers would seetheir monthly bills go up sharply to cover costs, the release states.

"Revenue from electricity sales has been insufficient to pay for the increased cost to deliver power over the past year," the release states.

In a written statement Finance Minister Caroline Wawzonek said the governments aims "to strike a balance between the territory's economic reality and the need to provide relief."

"We understand that the cost of electricity can put a strain on family budgets, making it harder for many to make ends meet."

The government also said it is taking steps to reduce N.W.T. electricity rates in the long term, and reduce reliance on diesel generation.