The committee expressed its concern to the Minister regarding the recent power rate increases in the majority of communities. The Minister explained to the committee that the recent power rate increases by the Northwest Territories Power Corporation or NWTPC reflects the incremental costs of delivering power. Furthermore, he stated that an increase to the power subsidy is necessary to offset these increased costs.

The committee commented that if fuel prices have dropped, there should be a resultant decrease in our power rates and a corresponding decrease in the government's power subsidy program. The Minister replied that the NWTPC had to purchase fuel in advance at a fixed price.

Committee members confirmed with the Minister that if the NWTPC were able to purchase fuel at a lower price for next year, there would be a decline in our power rates as well as a reduction in funding for the power subsidy.