Nunavut power utility wants to make the rich pay

The Qulliq Energy Corp. has presented the Nunavut energy minister, Lorne Kusugak, with a massive rate scheme that would force customers in larger communities to pay more for electricity so that customers in smaller communities would pay less.

QEC filed the proposed new rate system Sept. 9, in a 755-page application.

Downloadable copies of the proposal and its executive summary are available here.

Under it, non-commercial power rates in Rankin Inlet, Baker Lake, Iqaluit, Pangnirtung, Cape Dorset and Igloolik would rise by up to five per cent.

And with the exception of Baker Lake, commercial power rates paid by private businesses would also rise by up to five per cent.

At the same time, commercial and non-commercial customers in all other Nunavut communities would decline by up to four per cent.

Pending a review by the Utility Rates Review Council and approval by the minister, the new scheme would come into effect April 1, 2012.

As part of its review, the URRC will hold public hearings in six communities on the following days: Cape Dorset, Nov. 9; Iqaluit, Nov. 10; Rankin Inlet, Nov. 12; Repulse Bay, Nov. 12; Taloyoak, Nov. 14; and Cambridge Bay, Nov. 15. A detailed schedule is embedded at the bottom of this page.

This represents Phase II of a rate-change process that started Oct. 4, 2010, when the power corporation requested across-the-board rate hikes of about 19 per cent.

The Government of Nunavut eventually granted most of that rate increase, in April of 2011, but not until after hearing numerous complaints from business, consumers and municipal governments.

During public hearings held during Phase I of the rate process, QEC officials floated the idea of “rate rebalancing,” under which communities would be grouped into rate zones.

The purpose of such a plan would be to even out power rates paid by relatively low-cost communities like Iqaluit and high-cost small communities.

Right now, each community in Nunavut pays its own tailor-made set of power rates, based on the cost of providing service in the community.

In 2004, the QEC floated the idea of a common set of power rates for all Nunavut communities, but that one-rate proposal was shot down after meeting widespread opposition, especially from Iqaluit.

Schedule of URCC public hearings on QEC Phase II rate proposal