Debates of September 28, 2017 (day 83)

Date
September
28
2017
Session
18th Assembly, 2nd Session
Day
83
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, Hon. Wally Schumann, Hon. Louis Sebert, Mr. Simpson, Mr. Testart, Mr. Thompson, Mr. Vanthuyne
Topics
Statements

Question 913-18(2): New Generators for Yellowknife Power Plant

Got in under the radar. It just wouldn't be oral question period without a question to the Minister responsible for the Power Corporation. Mr. Speaker, we have been going back and forth on some dialogue with regard to this. I want to ask the Minister: if we never were to receive these generators from Virdi Power, if there is no recovery of costs lost from Virdi Power, if, as the Minister as indicated yesterday, all of this ends up having to be a write-off, then someone has to pay. Is it the intention of the Power Corporation to put forward another rate application or another rate increase application and/or ask this government for another subsidy if those costs have to be recovered? Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Masi. Minister responsible for NWT Power Corporation.

Thank you, Mr. Speaker. The simplest answer is that I am not sure. We are still optimistic that we will be receiving at least some of the generators. If we do not, clearly there will be costs or losses incurred. I do not think we are very likely to succeed if we have to litigate this in California, but we would have to take advice from our legal counsel in that state. I have not really thought through the possibilities. Either directly or indirectly, I suppose, the government and people of the Northwest Territories would have to absorb this one way or another. Thank you.

Just one final question. I mean It seems to me that there will be some degree of loss here, and it is going to be significant. There is no small number involved in this. This is very important. Either taxpayers or ratepayers, one or the other, are going to probably end up having to pay. Is the Power Corporation at least starting to plan and take next steps as it relates to how they will recover some of these lost costs?

Yes, of course, the Power Corporation is doing that. As I say, there is always the possibility of litigation for breach of contract, but I am not terribly optimistic as to how that would result. I will speak again to management at the Power Corporation and could perhaps, after that, privately address this issue more fully with the Member opposite.