I do support the concept of a one-rate zone. I spoke before on the power rate increases in Inuvik again. Luckily we have a subsidy from the government that helps to offset some of these costs; otherwise, we’d all have to move out of the Northwest Territories.
I’d like to direct my line of questioning today to the Minister Responsible for the Public Utilities Board, who oversees the applications that come in for rate increases. I’d like to ask the Minister: once the decisions are made, does the Minister have to sign off these decisions?
Mr. Speaker, the Public Utilities Board is an arm’s-length board from the Government of the Northwest Territories. As the Minister Responsible for the PUB, I can appoint board members to the board, but I don’t sign off on any decisions the board makes.
That’s where I would like to go next. These are decisions affecting people that we represent, so I think we should have a say in the decisions that are made.
I’d like to ask the Minister what we would have to do to have decisions that are made by the Public Utilities Board endorsed by the Legislative Assembly, because it does affect all the people that we represent. I believe we need to have a say in the decisions that are made from now on.
I think it’s important for the public to understand the role the Public Utilities Board plays. The board reviews all applications for rate increases by a regulated power body. If the Public Utilities Board were not there, there would be no opportunity for review and for input by the public, and by affected sectors, to examine rates that have been put forward by utilities and corporations. Over the years the Public Utilities Board decisions have probably resulted in savings to the average consumer of a significant amount.
If there were savings to the average consumer, then I wouldn’t be asking these questions. There is a frustration out there that too many of these applications are rubber-stamped by the Public Utilities Board. I understand the need to operate at an arm’s length, like I said.
The Public Utilities Board seeks public input into the applications. Are they required to hold public hearings so the public can put their input into these decisions? I am sure they would hear the exact opposite of everything else that is out there. They’ll give them their feedback into the proposed rates and how it is going to affect them. So is there a requirement to hold a public hearing, and if there is, is there a cost to it?
The Public Utilities Board, once it has received an application for rate increases, holds a public hearing and also provides for intervener funding. The hearings play a large part in the rulings by the Public Utilities Board.
My experience is that the Public Utilities Board doesn’t take the applications and rubber-stamp the approval; it takes its responsibilities very seriously. In its most recent applications, the Public Utilities Board has in fact ruled to reduce the amount that had been applied for. So I think the Public Utilities Board is a part of the regulatory function of the Northwest Territories.
I should also point out that with the approval and acceptance of the 2007 N.W.T. energy plan, we do have an electricity rate review that is undertaken that is provided for through the energy plan. One of the key principles that we are working towards with the energy plan is affordable power for all residents. This review will look at the regulation of energy, the provision of subsidy and the way in which rates are determined.
Final supplementary, Mr. Robert McLeod.
Thank you, Mr. Speaker, and I thank the Minister for that.
The significant savings that he may be speaking about here…. There was a $2 million shortfall that the NWTPC asked for three and a half months to recover. The Public Utilities Board said, “We’ll give you 12 months.” They are still going to recover the shortfall, so really, in my opinion, it isn’t a significant savings to the general public.
I would like to ask the Minister again. This is something that is affecting people that we represent, so I think we as an Assembly should have some say into some of these decisions. So I’d like to ask the Minister again: is it possible for this Assembly to have approval over the final decisions that are made or recommended by the Public Utilities Board?
Part of the review that is being undertaken…. My expectation is that we would come up with options which would entertain exactly what the Member is putting forward. And that would be one of the options that we would look at.
