Improving how electricity works for people and communities in the NWT

April 17, 2025

New direction issued to the Public Utilities Board (PUB) will modernize how electricity is regulated and delivered in the Northwest Territories. The changes are designed to support the growing pressure to transition to a lower-carbon economy, while maintaining an electricity system that is safe, secure, affordable, and reliable.

The direction includes 11 policy directives focused on improving and expanding net metering and independent power producer programs, implementing rate impact mitigation measures, mandating long-term integrated system planning, and making several necessary regulatory updates. Many of these issues are interrelated. As a package, these changes reflect years of the Government of the Northwest Territories’ (GNWT) research and aim to balance system costs with the benefits of increased community participation and renewable energy adoption.

This work responds to long-standing issues raised by utilities, communities, and residents, while creating more space for Northerners to generate their own renewable power and manage their energy costs. It will also better position Indigenous and community governments to advance renewable energy opportunities and support local economic development.

These issues were largely echoed by invested parties, partners, and the public during broad engagement conducted by the GNWT in 2023 on the renewal of the 2030 Energy Strategy. This  policy direction represents the GNWT’s steps towards a revised strategic approach to energy in order to meet the GNWT’s net zero greenhouse gas emissions by 2050 commitments.

For more information, visit https://www.inf.gov.nt.ca/en/services/energy/about-nwt-public-utilities-board

QUOTES

“These changes are about building an energy system that works for everyone—today and into the future. We are creating more space for communities and Indigenous governments to lead clean energy projects, while taking clear steps to protect affordability, improve fairness and create new opportunities for Northerners. Managing the energy transition requires thoughtful planning and practical action, and that’s what this direction delivers .”

Caroline Wawzonek, Minister Responsible for Strategic Infrastructure, Energy and Supply Chains

“The Public Utilities Board plays a vital role in ensuring our energy system is fair, transparent, and accountable. This direction gives the Board clear guidance to support long-term planning, balance rate impacts, and enable broader participation in renewable energy development. It reflects our responsibility to ensure the system evolves in a way that protects the public interest and responds to the needs of today’s and tomorrow’s ratepayers.”

Vince McKay, Minister Responsible for the Public Utilities Board

QUICK FACTS

• The new direction includes 11 interrelated directives to support a modern, affordable, and low-carbon electricity system in the NWT.
• Community renewable energy caps in diesel-powered communities will increase from 20% to 30%, with further flexibility if battery storage is used.
• All self-generators connected to the grid must now participate in a regulated program to ensure fair treatment for everyone—either Net Metering or Independent Power Production.
• Compensation for self-generators will be set by the Public Utilities Board and will reflect the actual value of their contribution to the grid, promoting fairness for all ratepayers.
• The Net Metering Program will expand to allow larger commercial projects while maintaining the 15kW cap for residential customers.
• A new, standardized Independent Power Producer program will prioritize Indigenous and community ownership and ensure transparency in power purchase agreements.
• Fixed monthly charges can now be adjusted to better reflect actual fixed infrastructure costs, helping to stabilize rates for all users.
• Electric vehicle chargers will now be considered part of regulated utility operations, enabling utilities to support EV infrastructure development.
• New electric heating rate options will be considered to help residents in hydro-powered zones take advantage of surplus electricity and reduce GHG emissions.
• A special “low water rate rider” fund will be created to better buffer electricity costs against the impacts of periodic droughts in our hydropower systems .

RELATED LINKS

• Energy Initiatives and Policy Updates – Infrastructure
• 2030 Energy Strategy
• Net Metering and IPP Programs Overview
• Our Energy and Climate Future in a Change World

For media requests, please contact:

INF Communications
Department of Infrastructure
Government of the Northwest Territories
INF_communications@gov.nt.ca

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