2026 Rate Increase FAQs
Q: What is changing?
A:
Effective September 1, 2026, the Gas Distribution Charge will increase by $10.00 per gigajoule (GJ) for rate one residential, rate two general service and rate three Northwest Territories government service customers in the Town of Inuvik. The new Gas Distribution Charge will be $45.44/GJ for rate one and rate two customers and $51.00/GJ for rate three customers.
Q: Why is the rate increasing?
A:
This adjustment is needed because natural gas production from the Ikhil well has declined significantly and the well is no longer a reliable enough supply source on its own to meet the community’s energy needs. As a result, IGL must rely more on propane, which requires more on-site storage and adds cost. Having a reliable propane supply available in Inuvik is especially important during winter road closures, when propane cannot always be shipped into the community.
To strengthen reliability and resilience, IGL has expanded propane storage capacity by 75 per cent and increased synthetic natural gas production capability. These investments help keep energy flowing reliably to homes and businesses during periods of supply disruption, transportation delays, extreme weather and peak demand.
Q: Is this increase approved by the Public Utilities Board?
A:
IGL has provided notice to the Northwest Territories Public Utilities Board in accordance with the regulatory requirements that apply to IGL. We have notified the Town of Inuvik and customers in advance of the September 1, 2026 effective date.
Q: How will customers be notified?
A:
Customers will be notified by email and bill enclosures no later than August 1, 2026, which is at least 30 days before the new rate takes effect.
Q: How much more will I pay?
A:
The impact on your bill will depend on how much gas you use. The Gas Distribution Charge is increasing by $10.00 per GJ. Customers can review their historical usage values on their invoices, including the graph showing their 12-month usage history, to estimate how the change may affect their bill based on their own consumption pattern.
Q: Why is the increase so large?
A:
This rate increase was not determined arbitrarily. It was developed through careful modelling and cost analysis to ensure it reflects the cost of strengthening the system while keeping natural gas cost-effective and fair for customers. Of the $10.00/GJ increase, approximately $5.50/GJ supports the cost of expanding propane storage capacity by 75 per cent, while the remaining $4.50/GJ supports ongoing costs of running and maintaining the system needed to keep the system reliable.
Q: What does the multiplier on my utility bill mean, and how does it affect my final monthly cost?
A:
A multiplier is used to convert the meter reading into actual gas consumption for billing. The final monthly cost depends on how much energy you use, multiplied by the applicable rate. Because billing is based on actual consumption, the impact of the rate increase will vary by customer.
Q: Is natural gas or synthetic natural gas still competitive compared with other heating options?
A:
Yes. The energy supplied by IGL remains the most cost-effective energy source for the community, even with the rate adjustment.
Q: Why is the NWT Government Service (rate three) charge higher?
A:
A higher rate three charge was approved by the PUB previously, but IGL has not charged the full approved amount. The same $10.00/GJ increase applies to all customer classes, resulting in rates of $45.44/GJ for Residential and General Service and $51.00/GJ for NWT Government Service.
Q: Why are customers paying for these upgrades?
A:
As a regulated utility, IGL recovers infrastructure and operating costs through customer rates. These investments were necessary to strengthen reliability and help secure the community’s energy supply.
Q: What would happen if these investments were not made?
A:
Without additional propane storage capacity and system upgrades, the community would face increased risk of supply interruptions, transportation disruptions, peak-demand constraints and reduced system reliability.
Q: Were alternatives considered?
A:
IGL evaluated options to maintain safe and reliable service and selected investments designed to strengthen long-term energy security while continuing to provide the community’s most cost-effective energy source.
General FAQs
Q: Who should I call if I have questions about my gas bill?
A: Call Inuvik Gas at 777-3422. Our knowledgeable staff will help you with your questions or concerns.
Q: Some of my bills are higher than others, including my Gigajoule (GJ) usage. Is there a reason why?
A: There could be a number of reasons for this, including:
- Billing cycles – Some billing cycles are longer than the usual 28-30 day cycle because of holidays or the date of the meter reading. All bills run on a cycle but not every customer is on the same billing cycle. Every bill is based on a meter reading not an estimate.
- Household consumption - Household consumption varies depending on how frequently appliances are used, whether they have been recently serviced, and whether filters have been replaced. For tips on reducing your consumption please see the Saving Energy section on our website.
- Colder temperatures will increase consumption and heating costs.
If you have concerns or questions about your gas bill please call us at 777-3422.
Q: What can I do to ease the financial impact of my monthly utility bills during the winter months?
A: We recommend customers consider budget billing as an alternative to ‘billing per use’. Budget billing balances your gas bills over the year, reducing the increases to your gas bill in the cold, high consumption winter months. You can enroll in the Budget Billing program between May 1 and August 1 each year which will allow you to ease the pressure of high gas bills in the winter.
Q: Does Synthetic Natural Gas (SNG) really have the same energy values as natural gas from Ikhil?
A: Actually, SNG has a higher energy value than natural gas from Ikhil. However, the propane is mixed with air and can be used by your natural gas appliance without modifications or operational issues.
Q: What is the status of the Franchise Agreement?
A: An interim agreement between IGL and the Town of Inuvik was executed on December 5th, 2019, allowing IGL to continue operating as if the Franchise Agreement were still in place, and the company remains interested in and supportive of the long-term energy security needs of their customers in Inuvik.
We believe the distribution system, including the SNG system will provide significant long-term value to the Town and is a critical component for any long-term heating solution for the community. Until an alternative energy solution is developed, our system can be used to deliver SNG or natural gas from the Ikhil well and it can be easily modified to handle liquefied natural gas (LNG).