Energy & Power
Transmission & Distribution
Northwest Territories Power and Hay River take first step of franchise
By Anthony Capkun
March 4, 2016 – Council for the Town of Hay River passed a motion to move forward with the next steps toward Northwest Territories Power Corp. acquiring the electrical distribution system and entering into a franchise agreement to distribute electricity to the town.
“After thoroughly reviewing the proposals, the town has determined that the NTPC proposal affords the town the best opportunity to reduce electricity rates within the community,” said Mayor Brad Mapes.
The decision follows an RFP issued May 2015 regarding a franchise for the supply and distribution of electricity within the town.
“We are looking forward to providing affordable and reliable power to Hay River and working with the town in a strong business partnership,” said Emanuel DaRosa, NTPC president & CEO. “I’d like to assure all employees of the current franchisee that NTPC intends to offer them positions as part of the transition.”
NTPC explains rates are made up of three basic components: wholesale, distribution and back-up generation. The rate for wholesale power, which NTPC already provides to Hay River, is regulated and set at a regional level for the entire South Slave. However, the distribution component would be reduced in excess of 30%, says NTPC, while the back-up generation component would be reduced in excess of 15% when compared to current rates. Customers can expect an overall decrease in Hay River’s electricity rate of about 20%.
The next steps include determining the value of the electric distribution assets, the town purchasing those assets from the current franchisee and selling them to NTPC, obtaining Public Utility Board approvals, and developing a transition plan and terms of service.
The new franchise agreement would take effect following the expiry of the existing franchise agreement with Northland Utilities Ltd. (an ATCO and Denendeh company) in November.