Our Solution For a Better Energy Future in the NWT
In a world of rising costs, we understand that changes to your utility bill can be concerning and sometimes confusing. Naka Power Utilities (Yellowknife) and Naka Power Utilities (NWT) recognize that keeping electricity costs down is vital for households and businesses alike. We want to take this opportunity to communicate openly and transparently about the concerns we have about the energy future for NWT.
With the recent news about rate increases, as well as challenges with completing large-scale projects on time and on budget, increasing fuel costs, low water conditions and demands on public dollars, we believe there are solutions available to improve the efficiency of NWT’s electricity sector and keep overall costs down. The conversation about NWT’s existing energy framework and how it can support the NWT’s transitioning energy future is imminent.
The GNWT has outlined the 2030 Energy Strategy that acknowledges NWT will need to make significant investments to refurbish existing generation facilities and develop new capacity for the generation, transmission and distribution to support renewable electricity and meet net zero commitments.
At the same time, the utilities and GNWT must also ensure that electricity continues to be provided in a manner that is safe, reliable, and affordable.
We are committed to continue to strengthen reliability to meet the growing demand for electricity in the NWT, especially in a transitioning energy landscape, influenced by climate commitments and other external factors. That is why we’re analyzing territory wide solutions which we recently brought forward to the GNWT at their Standing Committee on December 3, 2024. (full presentation included in the link)
Canada’s energy transition can only happen with collaboration, which is necessary to support the ambitions of the territorial government to expand electrification. We also know that any success will require partnership by governments, the private sector and communities – most notably Indigenous organizations where equity investment in utilities can be an important instrument in reconciliation.
We believe that working together is the better course of action and we stand ready to start that work today.
Proposed Solutions:
1) Simplify Rate Zones: Currently there are seven zone rates in the NWT; we are proposing to the GNWT and the Public Utility Board to reduce this to TWO zone rates (thermal & hydro) which would benefit all customers in the NWT by the following:
- Ensures all customers have fair and equitable rates, regardless of utility provider
- Distributes benefits of legacy hydro assets to all customers in the NWT
- Reduces administrative and regulatory complexity, leading to cost savings for the NWT and customers
- Promotes rate and revenue stability, as well as inter-utility collaboration between Naka & NTPC
- Best positions NWT for the energy transition
2) Streamline Utility Functions: Between the two utilities, there is an overlap of core utility functions which can be inefficient. By streamlining some or all these functions, a more efficient, cost-effective energy sector in the NWT can be realized by having each utility concentrate their efforts on their specific tasks.
3) Supporting Indigenous Ownership: By creating certainty with our franchises in the NWT, Naka Power Utilities (Yellowknife) and Naka Power Utilities (NWT) can focus on more productive tasks, instead of spending time and money defending our franchises from government takeovers. In turn, this would respect the long-standing Indigenous investment our company has made and demonstrate commitment to Indigenous economic participation in the future of NWT’s energy sector.
Benefits of Naka Power Utilities (Yellowknife) & Naka Power Utilities (NWT)
- As one of the only and longest-held Indigenous-owned utilities in Canada, Naka Power Utilities (Yellowknife) and Naka Power Utilities (NWT) have been serving customers in the Northwest Territories for more than 70 years. Our utilities have been operated in partnership with Denendeh Investments Incorporated for nearly 40 years in the territory’s power system to provide safe, reliable service. Today, our company is an equal partnership between DII and ATCO. DII shares equally in the responsibility of Naka, including profits, losses, duties to raise capital for investment, and oversight of operations.
- Recently, the partnership with DII through local Indigenous ownership was celebrated nationally and we received the 2024 Electricity Canada Award for Leadership in Community Partnerships.
- Through our connection with ATCO, Naka Power Utilities (Yellowknife) and Naka Power Utilities (NWT) have access to economies of scale, supply chains and materials. We have also leaned on ATCO for support during emergency responses, such as the 2023 NWT Wildfires.