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Canada - Northwest Territories

( Last update: April, 2008 )

Electricity Market
Sector structure
Upstream

The sector is partially privatised.

In 2003, electricity generation in the Northwest Territories was 588 GW.h, of which about 46 percent originated from hydro sources, 50 percent from diesel-fired units and four percent from natural gas-fired units.

The Northwest Territories Power Corporation (NTPC), a Crown corporation of the Government of the Northwest Territories, is the main producer of electric power in the Northwest Territories there are also isolated generators. In 2004, the NTPC generated 316 gigawatt hours of electricity.

Power is produced from 28 separate power systems including six hydro facilities and two separate transmission systems located near Fort Smith and Yellowknife. The hydro facilities are the main generators of power for Hay River, Fort Smith, Fort Resolution, Yellowknife, Dettah and Rae-Edzo. Power is produced from natural gas-fired facilities in Inuvik and Norman Wells, and diesel-fired facilities in other communities.

NTPC is vertically integrated. No unbundling rules.

No wholesale market.

Networks

The transmission is publicly-owned while the distribution is partially privatised.

The NTPC operates its transmission systems and numerous isolated distribution systems serving a population of approximately 42,000 people. It also supplies electricity on a wholesale basis to two distributing utilities, which, in turn, retail electricity to customers in Yellowknife and Hay River.

One of this utility is Northlands Utilities Ltd. (a subsidiary of ATCO Electric) that owns and operates its distribution systems in Hay River, Yellowknife, and four other isolated communities.

Transmission and distribution rates are regulated by PUB on a rate base (rate of return method).

Downstream

The sector is partially privatised.

Distribution companies are also responsible for supply to tariff customers.

End-user prices are regulated by the PUB.

Gas Market
Sector structure
Upstream

The sector is partially privatised.

Canada's northern territories have large, untapped resources of crude oil and natural gas.

Main production fields are Ikhil gas that produced 1.5 million cubic feet a day in 2005 and it is operated by Inuvialuit Petroleum Corporation (IPC), AltaGas Marketing Inc. (AMI), and IPL Holdings Inc. (IPLH) to supply natural gas to the Town of Inuvik; Norman Wells production fields operated by Imperial Oil.

In 2006, there was a natural gas discovery in the Central Mackenzie Valley. The Mackenzie Delta, holds an estimated 5-6 Tcf of recoverable natural gas reserves (from three large, proven natural gas fields). Natural gas from the region could begin flowing to southern markets by 2010, if natural gas companies can complete the Mackenzie Gas Pipeline on schedule.

Networks

The sector is partially privatised.

Two main natural gas distribution companies: Inuvik Gas Ltd operates a natural gas distribution system that serves residential and commercial customers in Inuvik and Town of Norman Wells that purchases natural gas from Imperial Oil and serves residential and commercial customers through the operation of its own natural gas distribution system.

Inuvik Gas Ltd is owned by Inuvialuit Petroleum Corporation (33.34%) , AltaGas Services (33,33%), and Enbridge Inc. (33, 34%).

Both companies are regulated by PUB on a complaints-basis using a rate of return method.

Downstream

The sector is partially privatised.

End-users’ natural gas rates charged by Inuvik Gas and Town of Norman Wells are regulated by PUB on a complaints-basis.

Current issues Electricity
  • Work continues on evaluating potential hydro sites.
  • Northwest Territories’ Energy Efficiency Incentive Program under application.
Natural gas
  • Mackenzie Gas Project under development. The project envolves approx. 6 (Tcf) of natural gas that has been discovered in the Mackenzie Delta and the costruction of the Mackenzie Valley Natural Gas Pipeline. (Natural gas first moving is planned by the 2010).
  • Considerable exploration and developments of natural gas is underway.
National Legislation Public Utilities Act
Sources IERN staff on publicly available information.