Energy minister freezes power rates

The Government of Nunavut will freeze power rates until April 1, 2004, the beginning of the next fiscal year, Ed Picco, the minister of energy, announced in the legislature on Tuesday.

The decision is a rejection of a request from the Nunavut Power Corporation to raise rates by 10 cents per kilowatt hour as part of a fuel stabilization rider, and a recommendation by the Utility Rates Review Council for a 7.5-cent increase.

“We took this action after taking a close look at the numbers when considering a recent request by the Nunavut Power Corporation for a temporary increase,” Picco said during a minister’s statement.

“We were not satisfied that the numbers were full and complete.”

Picco said the GN also considered the “personal hardship” the rate increase would place on consumers.

However, the decision only delays the necessary rebuilding of NPC’s fuel stabilization fund, which prevents a fluctuation in fuel prices as world markets shift.

“What is it they say? It’s only prolonging the agony,” said Hunter Tootoo, the MLA for Iqaluit Centre, during a break in the session.

The matter has been referred to the committee of the whole, so members can discuss the decision in public.