For Immediate Release
NTPC Applies for One Cent Fuel Rider
HAY RIVER, Northwest Territories (March 11, 2014) – Northwest Territories Power Corporation (NTPC) has filed a request with the Public Utilities Board (PUB) for a fuel rider of one cent per kilo Watt hour, in an attempt to stabilize the effects of the rising cost of diesel fuel.
On average, diesel prices are 8 per cent higher than when NTPC last set its power rate and that translates to a $2.5 million deficit in the fuel stabilization fund.
When power rates are set by the Public Utilities Board they are set using the cost of diesel at that time, which is how all rates are set. However, the cost of diesel on the world market has increased significantly and current power rates no longer cover the actual cost of the diesel being purchased and used at this time.
This application is now under review by the Public Utilities Board, with an estimated territory-wide start date of April 1, 2014. The impact on an average residential customer will be between $2 and $8 per month.
All funds collected from the fuel rider go directly into a fuel stabilization fund that covers the extra cost in fuel and does not go towards any other NTPC expenses.
A copy of the application can be found on the NTPC website at www.NTPC.com.
NTPC also reminds customers that on April 1, 2014, the third of four scheduled increases in rates will also take place with an increase of 5.6 per cent.
NTPC power rates cannot change without PUB approval and have not changed since April 1, 2013.