Naka-YK 2024-2025 GRA
Northland Utilities (Yellowknife) Limited, doing business as Naka Power Utilities (Yellowknife) (Naka-YK), is pleased to submit its 2024-2025 General Rate Application (GRA) to the Northwest Territories Public Utilities Board (Board). Naka-YK provides safe, reliable electrical services to customers in the City of Yellowknife and N’Dilo.
Naka-YK GRA Application Overview
Since our last GRA in 2011, we have diligently managed operations relative to customer growth within the previously approved Board revenue requirements. We have also made significant investments while managing the rising costs that all businesses have experienced so we can keep costs as low as possible. But the reality is we need to do more if we are to continue to strengthen reliability to meet the growing demand for electricity in the NWT, especially in a transitioning energy landscape, influenced by climate change and other external factors. This rate Application will support the work we need to do to achieve this.
The proposed Naka-YK GRA includes a rate increase to financially support inflation increases and capital programs, such as the Customer Information System (CIS) Billing Replacement program.
- Naka-YK GRA Phase I:
In Phase I of a GRA, the Board determines the amount of revenue that Naka-YK needs to earn in a year to cover the costs of providing service to our customers and to earn a fair return on our investment. Subject to final approval by the Board, Naka-YK revenue requirement amounts for 2024 and 2025 have been calculated to be $54.8 million and $57.1 million, respectively.
- Naka-YK GRA Phase II:
During Phase II, the Board will determine the specific rates that each type of customer (for example: residential, commercial, streetlights etc.) will be charged and to enable Naka-YK to collect our annual revenue requirement.
While the proposed revenue requirement amounts have not been approved yet, Naka-YK has proposed interim refundable rates to reflect a rate increase of 3.0% effective November 1, 2024, and a further rate increase of 1.1% effective January 1, 2025.
NWT PUB Contact
Persons who wish to intervene or present, and who are uncertain as to the manner in which to proceed, may contact Doris Minoza, Board Secretary, NWT Public Utilities Board by telephone (867) 874-3944, in writing at 203 – 62 Woodland Drive, Hay River, NT X0E 1G1, by email to doris_minoza@gov.nt.ca or by fax at (867) 874-3639.
Activity & Important Dates
- Filing of the Application: 24-Sept-24
- Registration by interveners who wish to participate in the Technical Proceedings: 14-Oct-24
- Publication of Notice of Proceedings: 14-Oct-24
- Correspondence from Members of the Public on participation in the proceedings: 21-Oct-24
The following is the Timetable for Parties in the Technical Part of the Proceedings
- Comment by all parties on NP-YK's proposal for approval of Interim Rates: 16-Oct-24
- Comment by Interveners on NP-YK's proposal to initiate a negotiated settlement: 16-Oct-24
Frequently Asked Questions
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What is a GRA?
A GRA (General Rate Application) is a document that contains information on a public utility company’s assets, operations and financial affairs. The public utility company (in this instance, Naka-YK) is required to provide this information to the regulator (NWT Public Utilities Board) in order to explain why it needs to change its rates.
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Who regulates Naka Power Utilities (Yellowknife) rates?
Our rates are regulated by the NWT Public Utilities Board (Board) to ensure our rates are fair and reasonable. The rates (tariffs) we charge are all approved by the Board in an open, public process. Our costs are fully transparent and any changes to our rates are subject to a formal process which includes scrutiny by customers, municipalities, and other users.
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What is a Rate Rider?
A Rate Rider is a temporary credit or charge that may appear on utility bills in some communities. The Board approves rate riders to enable firms to recover actual operational costs that are not included in the approved rates.
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What is the decision-making process for the Board?
Under the rate base/rate of return method of regulation, used by the Board, a GRA is usually handled in two phases.
The first phase, known as the “Revenue Requirement”, examines the utility company’s revenues and expenses. The purpose of Phase I of a GRA is to determine the amount of revenue that the utility company needs to earn in a year to cover its costs in providing service to its customers and to earn a fair return on its investment.
Once the Board issues a decision on the Phase I revenue requirement, the utility company may file a Phase II Application, in which it proposes how it is going to collect its annual revenue requirement from each of its various types of customer groups (e.g. residential, commercial, streetlights etc.). The main purpose of a Phase II filing is to determine the specific rates that each type of customer group will be charged and to demonstrate that these rates will enable the utility company to collect its annual revenue requirement.
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How much is the actual proposed rate increase?
Subject to final approval by the Board of the Naka-YK 2024-2025 GRA, Naka-YK has proposed interim refundable rates to reflect a rate increase of 3.0% effective November 1, 2024, and a further rate increase of 1.1% effective January 1, 2025.
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Has the Application for interim rates been approved?
No, Naka-YK has not received a decision on interim rates.
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Why does Naka-YK expect to need higher rates?
The proposed Naka-YK GRA includes a rate increase to financially support electrical system projects, inflation increases, and capital programs, such as the Customer Information System (CIS) Billing Replacement program.
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What infrastructure improvements will a rate increase support?
Naka-YK’s main reasons for infrastructure improvements include accommodating the increasing demand for electricity due to the growing number of customers, upgrading aging infrastructure to ensure reliable service, implementing a new customer billing system to enhance efficiency, and replacing assets that have reached their end of life. These upgrades are essential to maintain a reliable and modern electric system for customers.
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Is the rate increase linked to the cost of electricity from NTPC?
Naka-YK’s General Rate Application focuses on our own costs. NTPC completes their own General Rate Applications for their costs as we are separate utilities.