GNWT to Subsidize Power Rate Increases

December 4, 2024

The Government of the Northwest Territories (GNWT) announced a $48 million dollar subsidy of $12 million per year over four years to the Northwest Territories Power Corporation (NTPC) to mitigate power rate increases for residents of the NWT.

This subsidy, in direct response to escalating power costs across the NWT, will offset impacts of rate increases proposed in NTPC’s General Rate Application (GRA), lowering the proposed rate increase from 24.8 percent to 15 percent.

The GNWT subsidy represents a strategic investment to help manage the cost of living in the NWT. The investment is needed due to rising electricity costs that have been exacerbated by inflation, energy price volatility and the impacts of climate change.

NTPC’s GRA is currently before the NWT Public Utilities Board, which is overseeing a review process designed to ensure that rate increases are fair and reasonable. Municipalities and Indigenous governments have registered as intervenors in the process and will be submitting their questions and concerns about the GRA to NTPC by December 16, 2024. The review process will take several months to complete before final rates are approved.

Quotes

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

–     Caroline Wawzonek, Minister of Finance

“NTPC 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. Additional funding from the GNWT will help reduce the required rate increase in all of our communities”

• Cory Strang, NTPC President and CEO

Quick facts

• GNWT will provide NTPC $12 million in 2024-25, 2025-26, 2026-27 and 2027-28
• The subsidy will reduce the average rate increase from 24.8% to 15% across the NWT
• The GNWT has contributed appx $45 million in the electricity sector over the past two years.

Related links

• NWT Public Utilities Board
• Homepage | Northwest Territories Power Corporation
• Minister Wawzonek Statement – General Rate Application
• 2030 Energy Strategy

For media requests, please contact:

Cabinet Communications
Government of the Northwest Territories
PressSecretary@gov.nt.ca

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