Debates of October 28, 2004 (day 30)

Thank you, Mr. Speaker. Mr. Speaker, my questions today are for the Premier, the Honourable Joe Handley, Minister responsible for the Northwest Territories Power Corporation. Mr. Speaker, the first question I have for the Premier is why did the Power Corporation spend close to $500,000 on two gas microturbines, which were designed by Mariah Energy and installed at the community recreation centre in Inuvik without some type of warranty on these microturbines, Mr. Speaker? Can the Premier advise the House of why there was no warranty on these pieces of equipment? Thank you.

Thank you, Mr. Ramsay. The honourable Premier, Mr. Handley.

Return To Question 332-15(3): Gas Microturbines In Inuvik

Mr. Speaker, the supply of those turbines was done after looking at a number of models and, in fact, several visits to the plant and the office; I can’t remember if it was in Calgary or Edmonton. This was a joint project done with the Town of Inuvik. Mr. Speaker, that’s some time ago and I don’t know the nature of the warranty on it although, as I recall, there were a number of visits by the people who provided those gas turbines. Thank you, Mr. Speaker.

Thank you, Mr. Handley. Supplementary, Mr. Ramsay.

Supplementary To Question 332-15(3): Gas Microturbines In Inuvik

Thank you, Mr. Speaker. Is it the policy of the Northwest Territories Power Corporation to purchase equipment valued at half-a-million dollars without proper warranties or service contracts attached to those pieces of equipment, because the two microturbines were only there for two years? Mr. Speaker, I am wondering if the Premier can state that that’s the policy of the Power Corporation, that they don’t really mind if there is no warranty or guarantee on pieces of equipment that cost the Power Corporation half-a-million dollars. Thank you.

Thank you, Mr. Ramsay. Mr. Handley.

Further Return To Question 332-15(3): Gas Microturbines In Inuvik

Mr. Speaker, those kinds of gas turbines are new technology. There are warranties on them, but when the Power Corporation looks at new ways of saving energy costs, it sometimes has to take some risk. The turbines that are provided in Inuvik are the same ones that I saw at one time myself in a recreation facility at one of the community colleges in Alberta. There was, by the corporation, as much due diligence on making sure that they were buying something that was reasonably sure. The company that provided them still does business there and does the service work that is essential. There have been problems, there’s no doubt about that; but, again, it’s new technology and we must continually be reaching out, although we don’t want to be too far out front of the technology where we do increase the risk too much. Mr. Speaker, this is typical in these kinds of projects. Thank you, Mr. Speaker.

Thank you, Mr. Handley. Supplementary, Mr. Ramsay.

Supplementary To Question 332-15(3): Gas Microturbines In Inuvik

Thank you, Mr. Speaker. Mr. Speaker, it seems quite a risky decision to spend half-a-million dollars on two cutting-edge microturbines to be placed in Inuvik, which is, as we all know, far removed from a major centre where they could get some servicing on the pieces of equipment. I know that the Power Corporation is going to try to run these two microturbines for another year and I am wondering if the Premier can advise us…I know they had to go out and get a new service contract to look after these microturbines. Can the Premier tell us today what that’s going to cost the Power Corporation to get a new service contract in place for these microturbines? Thank you.

Thank you, Mr. Ramsay. Mr. Handley.

Further Return To Question 332-15(3): Gas Microturbines In Inuvik

Mr. Speaker, I don’t know if the Power Corporation yet knows what the new service contract will cost. But, Mr. Speaker, I can assure the Member that as soon as the Power Corporation has a quote on that, then we will provide it to the Member. Thank you, Mr. Speaker.