Debates of October 29, 2004 (day 31)

Thank you, Mr. Speaker. Mr. Speaker, my questions are for Minister Roland with respect to the Territorial Power Support Program to offset the high cost of power in the communities that are on diesel generated power. Mr. Speaker, this program has been in place for a while now and it is an attempt to level the rates for the small communities. I believe for residential consumers it’s to bring the rates down on the first 700 kilowatts of power consumed in a month, and for small business for the first 1,000 kilowatts of power used. Mr. Speaker, I would like to know what the government has done to prepare and anticipate for there being a rise in the cost of this subsidy program in view of anticipated riders because of the high cost of fuel, if the government has built this into their financial plans. Thank you.

Thank you, Mrs. Groenewegen. The honourable Minister responsible for FMBS, Mr. Roland.

Return To Question 339-15(3): Territorial Power Support Program

Thank you, Mr. Speaker. Mr. Speaker, the area of the Territorial Power Support Program, as the Member stated, is to try to even out the cost of providing power to residents of the Northwest Territories, and we have, over the last number of years, been increasing the amount because of the growth and demand -- more houses out there as well as people in the North. We feel, however, initially when we put the plans together that there was no anticipation of such a jump in the price of oil, hopefully it will continue to come down somewhat. A lot of it depends on when fuel was purchased and how that falls out in the next resupply and having that impact, and then we would have to look at making possible further adjustments.

For this year we have estimated that we would be fairly close to the previous year's targets. For example, in 2003-2004 the Territorial Power Support Program cost in the area of $7.2 million. That is something that we are concerned with, in earlier questions yesterday as well as today, about what can we do. It is fairly difficult to try to plan ahead if we are not sure, for example, a rate rider going forward will get approved. So that makes it a bit more difficult to try and project some of those changes. Thank you.

Thank you, Mr. Roland. Supplementary, Mrs. Groenewegen.

Supplementary To Question 339-15(3): Territorial Power Support Program

Thank you, Mr. Speaker. Mr. Speaker, with regard to the Territorial Power Support Program, as well, because the rate is already set, the consumption of subsidized power is set at 700 and 1,000, as I previously mentioned. Anything exceeding that is going to, if the rate for power goes up, impact residents and businesses quite significantly. I’m wondering if the Minister has given any contemplation to how we might address that. Has the Territorial Power Support Program been reviewed lately to find out if those are realistic levels; 700 and 1,000? When was the last time the Territorial Power Support Program was reviewed for adequacy? Thank you.

Thank you, Mrs. Groenewegen. Two questions there, Mr. Roland, you can answer one or both.

Further Return To Question 339-15(3): Territorial Power Support Program

Thank you, Mr. Speaker. Mr. Speaker, the work that we do on an annual basis in preparing for budgets and so on, we do look at the rates as they are and the impact that they would have, more for a budgeting process. I don’t have information offhand as to when the actual work was done on looking at the 700 kilowatt hours per month or the 1,000 kilowatt for small business. We haven’t done that work since we took office. It is something that we have to keep in mind; if we change those we also change the cost drivers in that. If it is something the Members of the House would like us to do a review on, we can look at doing that. Thank you.

Thank you, Mr. Roland. Supplementary, Mrs. Groenewegen.

Supplementary To Question 339-15(3): Territorial Power Support Program

Thank you, Mr. Speaker, I think it would be a very good time to do a review of that. I don’t think that the territorial power support program is adequate when it comes to the support for small business. We hear this from the small communities and, of course, this always precipitates discussion about a single-rate zone. Mr. Speaker, I have my own thoughts as to whether or not applying a single-rate zone is the solution to this problem. I think that there are other things that could be done. The one gap I recognize is with the small business support. Could the Minister please indicate what that costs and what kind of uptake there is on that for small business? I think it is very inadequate, but what kind of uptake in cost is there? Thank you.

Thank you, Mrs. Groenewegen. Mr. Roland.

Further Return To Question 339-15(3): Territorial Power Support Program

Thank you, Mr. Speaker. Mr. Speaker, the subsidy we have for small business is 1,000 kilowatt hours per month at the subsidized rate, but beyond that then it is full cost recovery in the sense of the rates themselves. We know that it’s out there, it’s an application-based program. I don’t have the actual percentages right now, but it has been discussed and we know that it depends on the amount of income businesses have on an annual basis if they qualify or not. The uptake hasn’t been as high and it fluctuates on a year-to-year basis, but I will get the information for the Member. Thank you.

Thank you, Mr. Roland. Final supplementary, Mrs. Groenewegen.

Supplementary To Question 339-15(3): Territorial Power Support Program

Thank you, Mr. Speaker. Would the Minister commit to taking a look at this territorial power support program, perhaps even working with Members on this side of the House to address this? I think it’s very timely right now, I think it’s fairly safe to say that there are going to be some price riders coming into effect, and I think particularly we need to address the business support. I think that the cost of running a business in small communities is hindering economic development and I see this as a good solution. Will the Minister commit to coming forward with a process and a plan to review these subsidies? Thank you.

Thank you, Mrs. Groenewegen. Mr. Roland.

Further Return To Question 339-15(3): Territorial Power Support Program

Thank you, Mr. Speaker. Mr. Speaker, I think in the whole area of energy and the impacts on our government, this program is one of those that would be a good thing to sit down with Members of this Assembly and go through to see if there are changes that we can make within the fiscal environment we operate in as well. Thank you.