Mahsi, Madam Speaker. I am very concerned, Madam Speaker, about the NWT Power Corporation's proposed rate structure changes which are presently before the Public Utilities Board.
Madam Speaker, the proposal raises several questions. It is based on the cost of service analysis completed by the corporation over the fiscal year ending March 31, 1994. This analysis looked at the true cost of providing electrical services to a community versus the actual revenue received. The Power Corporation has said it needs revenue of nearly $100 million to remain in the black.
Proposed rate zones were created according to the source of power, diesel generator or hydroelectric. Also taken into consideration for creating these rate zones was the community's geopolitical location. What this means, Madam Speaker, is that rates in some areas, such as areas served by the Taltson hydroelectric project will go down and rates in the western diesel system rate area, which includes all the communities in my constituency, will go up. As a matter of fact, Madam Speaker, the rates in the western Arctic diesel zone for domestic service will have increased by approximately 50 per cent to meet the corporation's cost and service revenue requirements.
While the corporation has indicated in their proposal that the cost of commercial services will go down, the government will now pay the same rate as other ratepayers. The corporation, in it's rate application, is shifting the onus for revenue generation to the private household ratepayer. Rates for domestic service in the communities in my constituency will go up by 20 per cent over the next two years. Of course, none of my constituents are too happy with this development. It means that people in my constituency will be paying more money for their power. Some people pay too much already.
In addition, Madam Speaker, I am not too impressed with the entire process of public hearings held by the Public Utilities Board into the proposed new rate structure. Adequate notice was not given to the residents of the NWT so that they could make informed submissions to the board. I am very disappointed that there were no hearings held in any of the regions on this important matter.
Madam Speaker, I am running out of time. I seek unanimous consent to conclude my statement.