Nunavut advisory body to hold meetings on QEC rate hikes

In 2011, many Iqaluit residents were opposed to the Qulliq Energy Corp.’s last attempt at creating a one-rate system for Nunavut. Here, Mike Gardener of Iqaluit speaks at a public meeting organized by the Utility Rates Review Council to complain about the rate increases that Iqaluit residents and businesses would have faced. “This is something of a fait accompli,” Gardener said. “Whatever we say, the rates will go up for Iqalungmiut.” (PHOTO BY JIM BELL)

The Utility Rate Review Council will hold public meetings next week to ask people what they think about the Qulliq Energy Corp.’s latest power rate application.

The QEC submitted their plan to the Government of Nunavut this past Nov. 9.

In it, the power utility proposes moving towards a one-rate system for customers in all Nunavut communities over six years.

Right now, customers in each Nunavut community pay different power rates, based on the unique cost structure at each community power plant.

Under the QEC’s new plan, each class of customer in every community would pay the same rate by the end of the six-year implementation period.

This means customers in larger communities like Iqaluit and Rankin Inlet would see big rate hikes, while customers in small communites like Kugaaruk and Whale Cove would see rate decreases.

In a notice, the review council said that at each meeting, QEC representatives will make a presentation on their proposal, after which residents may ask questions and make comments.

The round of meetings starts Monday, under the following schedule:

• Pond Inlet — Jan. 8, 2018, 7 to 9 p.m. at the community hall.

• Igloolik — Jan 9, 2018, 7 to 9 p.m. at the community hall.

• Cape Dorset — Jan. 10, 2018, 7 to 9 p.m. at the community hall.

• Iqaluit — Jan. 11, 2018, 7 to 9 p.m. at the Anglican parish hall

• Iqaluit — Jan. 13, 2018, 1 to 3 p.m. at the francophone centre.

• Qikiqtarjuaq — Jan. 12, 2018, 7 to 9 p.m. at the community hall.

Also, people may make written submissions to the review council on the QEC application.

The URRC’s deadline for receipt of written submissions is Feb. 2, 2018 at 5 p.m. eastern time. Information about how and where to send written submissions is available on the URRC website.

Under the QEC’s proposal, customers in larger communities would get hit hard over the next two years.

For example, in Iqaluit, commercial non-government power rates, a class that includes small businesses, would rise by 12 per cent in 2018-19 and by 8.6 per cent in 2019-20.

And commercial non-government power rates in Rankin Inlet would rise by 10.9 per cent in 2018-19 and by 8.6 per cent in 2019-20.

For domestic non-government customers, a class that includes private homeowners, power rates in Iqaluit would rise by 9.9 per cent in 2018-19 and by 8.6 per cent in 2019-20.

And domestic non-government power rates in Rankin Inlet would rise by 9.5 per cent in 2018-19 and by 8.6 per cent in 2019-20.

In contrast, commercial non-government power rates in Kugaaruk would decrease by 4.2 per cent in in 2018-19 and decrease by 4.7 per cent in 2019-20.

Also embedded within the QEC’s rate proposal is an across-the-board rate hike proposal for a 7.6-per-cent rate increase across all rate classes over two years: 2018-19 and 2019-20.

This accounts for rate hikes of about 3.6 per cent in each of those two years for all customers, the QEC said this past November.

In the past, QEC has twice tried and failed to impose a one-rate system on Nunavut, in 2004 and again in 2011.

The review council is only an advisory body. After its consultation period, the URRC will submit recommendations to Jeannie Ehaloak, the minister responsible for the Qulliq Energy Corp., who will issue a decision.