Thank you, Mr. Speaker. In this House on May 28, 2015, Minister Miltenberger explained to us that we had a clear example of why NTPC should be bidding in an open, transparent and fair RFP Hay River process. He further explained that Fort Smith and Fort Resolution are paying 21 cents per kilowatt hour compared to 31 cents for the town of Hay River. Now Public Utilities Board, PUB, documents confirm this and indicate Hay River has been overcharged by 30 percent for its power by NTPC for a very long time.
Can the Minister responsible for NTPC please explain why his riding is charged less for power by NTPC? Thank you.
Thank you, Mr. Dolynny. Minister responsible for the Power Corporation, Mr. Miltenberger.
Thank you, Mr. Speaker. As I stand here dressed in purple with my nice flower on and it’s a special day for seniors, I was expecting a few softballs from the Member, but apparently no consideration will be given to the fact that I’m a poor senior too.
With regard to his question, the rates are set by the PUB. Thank you.
Okay. Well, we’ll try to be a little gentler. To the even bigger question, why has NTPC been overcharging Hay River for years? Many are asking, “Why didn’t this government collaborate with stakeholders to create an affordable level playing field in the South Slave?” So again, why would this government, this Minister, secretly support a 30 percent surcharge for Hay River residents? Can the Minister please explain that? Thank you.
We weren’t secretly supporting anything. The rates are there. There is a rate rebalancing process underway. It has been set at a 1 percent increase for this year and 3 percent for subsequent years as we move towards rebalancing. Rebalancing a rate structure that we inherited going back to federal times that is well superseded, in many cases, by the requirement for NTPC and the government to put money into things to protect the rates for all power users in the Northwest Territories, regardless of who provides or who distributes the power. I would refer specifically to things like the $37 million or so that we put towards cushioning rates over the last four years so that people across the Northwest Territories wouldn’t be unduly impacted, or the $20 million low water fee that protected all electrical users across the Northwest Territories. Thank you.
I might have to come for that answer in question period one more time.
For now, why is the government, this Minister, through its Crown company, picking and choosing which communities are getting the biggest benefit of NTPC subsidized power? Can the Minister educate us on this optically unfair model? Thank you.
The Member is making assertions that are erroneous. The rates are set by the PUB. There are challenges across the system. We did have a huge rate restructuring in the last government and we continue to work on managing those cost pressures, both in diesel communities as well as in the hydro communities. Thank you.
Thank you, Mr. Miltenberger. Final, short supplementary, Mr. Dolynny.
Thank you, Mr. Speaker. So, what we’ve been able to calculate today with my statement and also the statement today by Mr. Bromley is that NTPC has been overcharging Hay River for years. Then, when you have the concept of this new secret Cabinet energy strategy, one must start to pattern this alleged fairness to transparency and openness with public money or the lack thereof.
Can the Minister inform the House if his definition of competitive process complies with this government’s stated philosophy on market disruption affecting the private sector?
The facts, when you take away all the bavardage and bafflegab, is that there is a 10 cent, 30 percent rate difference between Hay River and Fort Smith and Fort Resolution. The Town of Hay River has made a conscious decision to go out and start a public process to seek providers to distribute power under a franchise agreement. We, the Power Corporation, are going to put a bid in. There is no guarantee that we are going to get it, be successful. Other bidders may be successful, if they choose to bid. That is yet to be seen.
What we do know is there are issues where there are, according to the town’s numbers, about $3 million a year that goes into the coffers of ATCO in Calgary, their downtown Calgary office, profit. Anything NTPC makes stays in the Northwest Territories. So the issue is very basic and clear. There is a 30 percent difference. Hay River wants to lower their cost of living. The Northwest Territories Power Corporation and the Government of the Northwest Territories have that as a priority, as well, across the Northwest Territories. Thank you.
Thank you, Mr. Miltenberger. Mr. Hawkins.
