N.W.T. announces $48M to offset power rate increase for next 4 years
CBC
The N.W.T. Government will spend $12 million every year for the next four years to offset a power rate increase for the territory's residents.
The Northwest Territories Power Corporation announced in October that it was looking to increase power rates by nearly 18 per cent, a significant jump it chalked up to "major issues" that are beyond its control.
That was in addition to a seven-per-cent interim rate increase that was approved and took effect in the summer, which works out to an overall increase of 24.8 per cent.
The money announced Wednesday will cut that increase to 15 per cent, a government news release said.
The release also called the subsidy "a strategic investment to help manage the cost of living in the N.W.T."
"The investment is needed due to rising electricity costs that have been exacerbated by inflation, energy price volatility and the impacts of climate change."
The power corporation's general rate application is currently before the N.W.T. Public Utilities Board. The review process will take several months before final rates are approved.
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