Thank you, Mr. Speaker. There is a fundamental problem with the mandate of the Northwest Territories Power Corporation and the regulatory regime that it operates under.
Most of us do our best to reduce our power consumption for the benefit of both the environment — reduction of greenhouse gas emissions — and the consumer — less energy used means lower electricity costs — and we should be trying to conserve for both of these reasons. The more we reduce our energy consumption, the less power we use. The less power we use, the more NTPC revenues drop. The more their revenues drop, the more riders they add to our bills. When NTPC cannot generate enough revenues to meet their expenditures, they ask for a rate increase or a rate rider to make up for lost revenue. The bottom line is that the dollar figure on our power bill goes up.
There is no incentive for an NWT homeowner to want to reduce energy consumption. Until we change this system, Mr. Speaker, we can never get ahead. Either the environment will take a beating or we will.
The government is reviewing electricity rates and regulation, as mentioned in Minister McLeod’s statement the other day. The calculation of NWT power rates must be completely revamped with a view to fairness and equitability.
Capital costs for upgrades to power generation in one community have to be applied to all communities across the territory, not just to the individual community where the infrastructure is built. Individual communities cannot handle the high infrastructure cost on their own.
We also have to look at revamping the corporation itself. NTPC must be renewed and reorganized. That NTPC is at arm’s length from the GNWT is a good thing, but I feel it has led to the mentality in the organization that they can do whatever they wish without consequences. There seems to be little concern for the consumers, for good business practices on the part of the NTPC’s leadership, little desire to increase efficiencies and identify savings in order to keep our power rates at a reasonable level.
A culture of efficiency and effectiveness must be instilled, with cost savings the number one priority for this company. For example, the corporation can eliminate management bonuses. It can stop the current massive advertising campaign that tells us how NTPC is going green and conserving. I have to wonder how much of those savings they are crowing about is being spent on advertising. The Power Corp can eliminate wasteful spending. I received a perfect example of such waste a few weeks ago.
Mr. Speaker, I seek unanimous consent to conclude my statement.
Unanimous consent granted.
Thank you, Mr. Speaker, and thank you to my colleagues. I received a perfect example of such waste a few weeks ago. It was a lovely colour report — of minimal value — many pages long and one sided printing; 30 pages of charts, one chart to a page. Several tables using three or four pages would have provided the same information at a fraction of the cost. I really had to wonder what value that report had for me.
NTPC’s board must be told that only after they have clearly demonstrated that all avenues for cost saving have been explored will they be allowed to consider power rate increases for its users. As I said before, it’s the duty of the Power Corp to do everything it can to minimize the impact of power generation costs on the average Joe and Mary. Will that day ever come?
Thank you, Ms. Bisaro. The honourable Member for Mackenzie Delta, Mr. Krutko.
Thank you, Mr. Speaker. Last week in this House the lead Minister for the Ministerial Energy Coordinating Committee tabled the draft NWT Hydro Strategy and GNWT Energy Priorities Framework. Energy is an increasingly important issue for our constituents. How much do we have? How much does it cost? Can our environment cope with our demand? The GNWT also faces increased energy costs along with higher costs for services we already provide and strategic initiatives we would like to pursue.
We are looking at expanding our existing hydro development to offer electricity to industry. We are looking at alternative energy sources like biomass and wind. These are all worthwhile clean energy initiatives that can help address our energy needs in the NWT in the future, but they will not address the majority of our energy needs in the foreseeable future. Meeting these energy demands of our territory will require huge investment. With our own borrowing limits set at $500 million by the federal government and limited capacity under this limit to borrow, how will we take the bold steps required to do progressive things on the energy front?
The energy potential of our territory is huge. The Premier has made comments in this House about leaving no stone unturned to come up with solutions for our energy problem. I believe that the Northwest Territories Power Corporation should play a role in this solution. The NWT Power Corp sometimes get a bad rap, and rightfully so, for increasing our power rates when the costs to generate this fuel are going down or when the power consumption of our residents is also going down. I sometimes question whether we need the Power Corporation at all. They are supposed to be the people’s power supplier, yet there seems to be limited thought about the public as prices continue to climb and bonuses continue to be offered to senior staff. The business case that the Power Corporation is based on seems antiquated and in dire need of a complete makeover or a complete elimination and substitution with something unique, built by Northerners for Northerners.
Also, the fee structure is based on a southern model from decades ago, which may never have been the right model for the Northwest Territories. I hope the future role of the NWT Power Corporation will be based on a new approach to an old problem. I am encouraged to see talk of partnerships in the documents I mentioned earlier in my statement.
Partnerships can bring new ways of doing things, larger amounts of capital investment dollars and expertise in their respective fields. The NWT is growing in stature, and thinking only within our borders about solutions to bigger issues belongs in the past.
I will have questions for the Minister responsible for the NWT Power Corporation at the appropriate time.
Thank you, Mr. Abernethy. The honourable Member for Hay River South, Mrs. Groenewegen.
Thank you, Mr. Speaker. The Power Corp issue is an accountability issue for me. It’s about value for money. The day to day question is: how is it being operated? Are we getting the money that we expect out of this organization? Are we getting the accountability out of this organization that we expect for our citizens in the territory?
Mr. Speaker, I think the government has a role to play. I think it’s time to roll the NWT Power Corp into the territorial realm of responsibility, just like any other department. They act like a department but with the independence of free rein. It’s a grey area as they exist right now. They’re not privatized, but they’re not quite government, so they get to sort of play on their own field the way they want. If they set their own rules, who gets punished? The consumer.
I wouldn’t suggest we ram the PUB through any type of exemption or roll it into the GNWT. I still think today that it provides a service, but the fact is I believe in better performance, and what better performance than bringing it here to the floor of this House for that type of scrutiny?
Mr. Speaker, it’s about accountability that I don’t think exists. It wasn’t that long ago we heard about the U.S. bailout. What it did was it helped look at bad practices. It helped look at bad policies. That bailout also helped look at — and by the way, rewards, bonuses for their CEOs who run this corporation…. I question this: what about the efficiency of the NWT Power Corp? Does the rate increase, in my mind, mock or similarly look like a proposed rate increase versus a bailout package? Possibly. In my view it’s scandalous. It looks at rewarding bad policies that aren’t reviewed by us. It looks at rewarding bad management, possibly not reviewed by us. And certainly it rewards CEO bonuses, again unaccountable and not examined by us.
Mr. Speaker, my issue is about having confidence in the system. The way it’s set up today, I don’t have confidence in the way it’s structured.
I’m going to close by saying we could probably do the best for our citizens by having it here, accountable in the Legislature, where it belongs.
Thank you, Mr. Hawkins. Item 4, reports of standing and special committees. The honourable Member for Nahendeh, Mr. Menicoche.
