Debates of October 25, 2016 (day 35)

Date
October
25
2016
Session
18th Assembly, 2nd Session
Day
35
Members Present
Hon. Glen Abernethy, Mr. Beaulieu, Mr. Blake, Hon. Caroline Cochrane, Ms. Green, Hon. Jackson Lafferty, Hon. Bob McLeod, Hon. Robert McLeod, Mr. McNeely, Hon. Alfred Moses, Mr. Nadli, Mr. Nakimayak, Mr. O’Reilly, Mr. Testart, Hon. Wally Schumann, Hon. Louis Sebert, Mr. Simpson, Mr. Thompson, Mr. Vanthuyne
Topics
Statements

Question 378-18(2): Territorial Power Rates, Generation and Distribution Systems

Thank you, Mr. Speaker. Mr. Speaker, my questions today are for the Minister responsible for the NWT Power Corporation. Mr. Speaker, communication to the public on power rates still appears unclear. The Minister indicated in his statement last week that, "the latest rate application will charge Yellowknife customers only 98 per cent of the cost of the service for 2016-2017."

Yet Northlands pointed to the rate application showing that it was charging Northlands 114 per cent. That's 14 per cent more than what it costs to produce power for Yellowknife. This is not open for interpretation and it can't be both ways. I would like to ask the Minister again which rate is correct? Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Masi. Minister responsible for NWT Power Corporation.

Mr. Speaker, the Public Utilities Board sets rates for both NTPC and Northland Utilities. NTPC did apply for 114 per cent in 2013-2014 based on a calculation of revenue-to-cost coverage. The Public Utilities Board rejected this calculation and directed that NTPC bill electricity at 98 per cent which is where it remains to this day. Thank you.

Thank you to the Minister for that clarification. Another question, Mr. Speaker, to the Minister is, fundamentally, what would have to change for the government to consider opening talks with ATCO?

The government has initiated an energy strategy which the House heard about last week, and we will be inviting proponents to attend and discuss energy in the NWT. ATCO is one of the invitees.

Thank you to the Minister. Mr. Speaker, when it comes to reducing or stabilizing the cost of power to consumers, the GNWT has typically taken an approach that results in higher costs to government. That is only cycling taxpayers' dollars and placing the costs on future governments. How does the GNWT plan to reverse that trend?

The GNWT has been subsidizing the cost of power for NWT residents, most recently through the $44 million to offset low water in the North Slave. I certainly agree with the Member opposite that finding ways to make our energy system more sustainable is crucial, and the government is in the early stages of partnering to tie into the continental grid.

We have also been partnering with communities such as Colville Lake to introduce solar arrays and reduce our reliance on fossil fuels. I look forward to hearing what other ideas are out there and the results of the energy strategy that I referred to earlier.

Speaker: MR. SPEAKER

Masi. Oral questions. Member for Yellowknife North.

Thank you, Mr. Speaker. Lastly, in the interests of open government and transparency, I would like to ask the Minister: how do residents get a say in whether the GNWT is our sole power provider or whether we look at other options, such as partnerships with private entities? Thank you, Mr. Speaker.

Mr. Speaker, it is important when we're looking at this issue to look at the situation in Hay River. It was the municipal decision of the Town of Hay River and its people to seek proposals for power. NTPC was one of the bidders. ATCO was another. It was a town decision to go with that NTPC proposal. There have been no decisions made for Yellowknife, but it will be the city that decides whether or not to go out for proposals when the current franchise expires in 2020.

Speaker: MR. SPEAKER

Masi. Oral questions. Member for Hay River North.