Naka-YK 2024-25 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.
- 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.
NWT Board Decision
On February 26, 2025, we received the NWT Public Utility Board decision for our 2024-2025 General Rate Application (GRA). The City of Yellowknife and Naka-YK collaborated to reach a Negotiated Settlement Agreement (NSA), which made the regulatory process more efficient and provided cost savings to customers without the need for a public hearing.
The Utility Board approved the NSA and directed Naka-YK to file rates to recover the revenue requirements of $55M for 2024 and $57M for 2025. These rates recover the costs of electricity to our customers in the City to Yellowknife and N’Dilo.
According to the NSA, the Board approved rate increases of 3.4% for 2024 and 1.3% for 2025. Customers will experience an average rate increase of approximately 4.8% effective March 1, 2025.
These rate adjustments will be reflected on Rider R and Rider E:
- Rider R (Revenue Adjustment Rider) will increase from 2.524% to 4.999%, and
- Rider E (Temporary Refund/Surcharge Rider) from 0% to 4.831%
After a 12-month period of collecting the outstanding true-up costs, customers can expect rates to decrease by approximately -3.0% effective March 1, 2026.
These rate increases are required to financially support the upsurge of inflation and our investments in capital programs, such as electrical infrastructure rebuilds and the Customer Information System (CIS) Billing Replacement program.
Learn more about the NWT energy landscape and the composition of rates.
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
- Utility Board Decision: 26-Feb-25
NWT PUB Contact
Persons who have questions or concerns about the regulatory process or rates, 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.
Frequently Asked Questions
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How much is the actual proposed rate increase for Naka-YK?
Based on the approval by the Board of the Naka-YK 2024-2025 GRA, Naka-YK interim refundable rates will reflect a rate increase of 3.4% for 2024, and 1.3% for 2025. Customer bills are expected to rise by an average of 4.8% starting March 1, 2025.
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Has the Naka-YK Application for interim rates been approved?
Yes, the Utility Board approved these rates on February 26, 2025.
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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.