Debates of October 23, 2008 (day 2)
Question 23-16(3) Territorial Power Subsidy Program
Thank you, Mr. Speaker. In my Member’s statement today I spoke about the high power costs in my riding of Nunakput and the fact that longer winters mean the people I represent consume more power. My questions today are for the Minister responsible for the territorial power subsidy, the Hon. Michael Miltenberger.
Can the Minister explain to this Assembly how the figure of 700 kilowatts, subsidized to the Yellowknife rate, came into being? My understanding is that this is the cost to run a fridge and a furnace and few lights.
Thank you, Mr. Jacobson. The honourable Minister of Finance, Mr. Miltenberger.
Thank you, Mr. Speaker. We inherited the Territorial Power Support Program when we took over the Power Corporation in 1988. The 700 kilowatt figure was, as I understand, sort of an average cost for your average household. It’s been there for some time, but I believe it’s for the total cost per household, as opposed to a fridge, a stove and a couple of light bulbs.
The Minister said in 1988; that’s a long time ago. I think I was 16 years old. Would the Minister agree that the far northern communities that I represent may need more than the 700 kilowatts of power provided to a minimum household?
Mr. Speaker, the 700 kilowatts is an average consumption figure, and most families across the North are able to live with that.
As Canadians, as Northerners we add more and more power using applications and appliances that drive up our own costs. We have things like vampires that just keep running 24 hours a day, waiting quietly to be called into use; we keep adding to our power consumption.
The issue is, is it more or is it conservation? The Yukon, I understand, has 1,000 kilowatts; we have 700. That’s an issue of debate. The commercial subsidy is another one that’s an issue of debate as well.
Will the Minister commit to examining the issue to determine whether the 700 kilowatt total is still relevant and whether the government should consider a tiered approach on the amount of kilowatts that are subsidized depending on where we live in the NWT?
The Premier has indicated today and it’s been mentioned in the past that we have an opportunity with the work that’s occurred and underway to look at the regulation, the generation and the distribution of power in the Northwest Territories: the subsidies, the differential rate zones that are currently in place, the structure of the Power Corporation. Those are all subjects that are on the table for discussion as we look at dealing with the cost of energy, the cost to the small communities, sustainable communities, conserving energy and greenhouse gas emissions. All those things are now here for us in this Legislature to put our minds to.
Thank you, Mr. Miltenberger. Final supplementary, Mr. Jacobson.
Thank you, Mr. Speaker. Would the Minister commit to sharing the results of such a study with the Standing Committee on Economic Development and Infrastructure?
Better than that, Mr. Speaker; we’re basically, as a government, reaching out to the Members to say, “Let’s engage together to look at this very complex, difficult subject, in terms of the redesign, the structures” — the very issues that the Members have identified as problematic. The opportunity is here. The work is underway. We’re looking at doing a lot of things in the next number of months that are going to be fundamental in terms of the changes they could bring. Collectively, we could do a very good job of this.
Thank you, Mr. Miltenberger. The honourable Member for Mackenzie Delta, Mr. Krutko.