Debates of March 1, 2023 (day 143)

Date
March
1
2023
Session
19th Assembly, 2nd Session
Day
143
Members Present
Hon. Diane Archie, Hon. Frederick Blake Jr., Mr. Bonnetrouge, Hon. Paulie Chinna, Ms. Cleveland, Hon. Caroline Cochrane, Mr. Edjericon, Hon. Julie Green, Mr. Jacobson, Mr. Johnson, Ms. Martselos, Ms. Nokleby, Mr. O’Reilly, Ms. Semmler, Hon. R.J. Simpson, Mr. Rocky Simpson, Hon. Shane Thompson, Hon. Caroline Wawzonek, Ms. Weyallon Armstrong
Topics
Statements

Thank you very much, Mr. Speaker. Mr. Speaker, just for context here, in December of 2022 we had 3,423 resident customers' accounts that are in arrears. We had 387 commercial customers that are in arrears. Mr. Speaker, we are working with the customers to be able to work and try and get their bills paid so that we don't have to put these limiters on. Thank you.

Thank you, Mr. Speaker. Is the Minister thinking of getting rid of all those bills on behalf of the whole territory then we could start over?

Mr. Speaker, you know what? Many residents are on income support in our territory. It's hard for them to pay their bills. Can the Minister commit to work with ECE to ensure that the clients can pay their power bills in the winter without having to give up the income support for food and other essential supplies; can she work with that with the Minister? Thank you, Mr. Speaker.

Thank you very much, Mr. Speaker. Mr. Speaker, we already do work with the Department of Education, Culture and Employment, and we also work with our income support program to be able to help the residents to work together and get their payments. So, yes, we do work together and perhaps we will continue to work together. Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Thank you, Minister. Final supplementary. Member for Nunakput.

Thank you, Mr. Speaker. Mr. Speaker, you know, our units in our small communities, the appliances are old and they suck the power and the power bills go up, Mr. Speaker. In that turn, the residents struggle to pay for that.

Has the Minister done any work with the Minister responsible for housing to get energy efficient appliances in the public units across the territory, especially in Nunakput riding? Thank you, Mr. Speaker.

Thank you very much, Mr. Speaker. Mr. Speaker, yes, the department works with NWT Housing. And, you know, we work with our partners like Arctic Energy Alliance. Mr. Speaker, there are some great programs out there that help support some of the housing that, you know, needs some work in the communities. Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Thank you, Minister. Oral questions. Member for Inuvik Twin Lakes.

Question 1407-19(2): Northwest Territories Power Corporation

Thank you, Mr. Speaker. Mr. Speaker, as I mentioned, my questions are for the Minister responsible for the NWT Power Corp.

I'd like to ask the Minister how the work of NTPC is considering the operating realities in my region? We continue to focus on the Taltson Hydro Expansion but in the Beaufort Delta what are we doing to build energy security and lower cost of power? And please, Mr. Speaker, I don't want to hear about the wind project and I don't want to hear about how it's saving us 3 to $4 million in offsets to the diesel costs, you know, because we already know that project is double in costs and is far from complete and we're going to be making it up for years. So what other strategic plans are in place? Thank you.

Speaker: MR. SPEAKER

Thank you, Member for Inuvik Twin Lakes. Minister responsible for Northwest Territories Power Corporation.

Thank you very much, Mr. Speaker. Mr. Speaker, I know the Member doesn't want me to bring up the wind project, so I won't. Other than, you know, we are on target. It's, you know, a great project when it gets completed. But talking about in our region actually, Mr. Speaker, I'm the Member for Inuvik as well. So I mean, working together, we are working with the Indigenous groups trying to look at strategic ways. The Inuvialuits got the line perhaps coming in for the natural gas. That's one strategic work that we could do together. The Nihtat Band has some great opportunities for other sources of renewable energy. So we are working together in the region. Perhaps we don't have access to a hydro system that is elsewhere in the territories. But I just want the Member to know that we are having discussions. Thank you, Mr. Speaker.

Thank you, Mr. Speaker. Mr. Speaker, with our governance board in place right now, I'm just wondering, like, I hear the Minister with the answers that we got but what other like, what I'm asking is what is in the Beaufort Delta, we are the highest cost of power. We use the most diesel up there to run. We don't have trees in half the region of the Beaufort Delta. Our barges don't make it in because of, you know, weather and different things so we can't get supplies up there so then we're flying stuff in. All this stuff is going to get passed down. But we have a board that's supposed to be making these strategic decisions. So what strategic decisions has this board made for my region that's going to make a big difference? Thank you.

Thank you very much, Mr. Speaker. Mr. Speaker, the Northwest Territories Power Corporation, yes, we do have a board of directors, and I'm sure I'll have further questions based on all the Member's statements that was said today, so, I mean, I'm quite prepared to speak on that. In terms of dealing directly with the Member in the riding that, you know, we can further discussions and just to see if perhaps there are recommendations that the Member may have and have that discussion to see how we can collaborate and get some projects going. Thank you, Mr. Speaker.

Thank you, Mr. Speaker. I'd go on about net metering and I'd go on about the board, but I know my colleagues are going to ask those questions so I'm just going to continue down this path.

So has this Minister secured increased funding, or is there even talks of increased funding, to cover these overruns that the wind project is going to cost because we've already heard what they were at, about 60 to $70 million of a $40-million project. So are these costs going to passed off to residents of the Northwest Territories on their power bills? Thank you, Mr. Speaker.

Thank you very much, Mr. Speaker. Mr. Speaker, so we will talk about the Inuvik Wind Project now. We talk about it, we don't talk about it, yes, there's costs overruns. And I want the Member to know that, you know, I've been to Ottawa several times speaking with federal ministers in terms of green energy and how we can reduce our GHG emissions here in the territories. So that is further discussions we will have. And yes, I'm sure I'll speak more about it all afternoon today. Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Thank you, Minister. Final supplementary. Member for Inuvik Twin Lakes.

Thank you, Mr. Speaker. I guess my question was have we asked for money to pay for these overruns or are we passing these off to NWT residents? But, you know, I guess the final thing is, as a Member of the 19th Legislative Assembly, am I going to be able to go the celebration party of the opening of the wind turbine in Inuvik? Thank you, Mr. Speaker.

I hope it's blowing there too, Mr. Speaker, because, you know, there was a lot of work that was put into this Inuvik Wind Project. You know, we've secured the funding from the federal government. So I mean, we've had to go back and request further funding to be able to complete this project. Right now we have we're hoping that this fall, or to the spring of 2023 to address some of the issues. So I will give the Member enough notice so that she can come with me to the Inuvik Wind Project and have the opening. Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Thank you, Minister. Oral questions. Member for Yellowknife North.

Question 1408-19(2): Snare Hydro

Thank you, Mr. Speaker. The Snare Hydro System is celebrating its 75th anniversary this year, which is perhaps not something to celebrate, and that's approaching the end of its life and replacement costs of hydro systems are in the billions of dollars, Mr. Speaker. Not a number any of us are happy to see. I know the system is actually it's something like seven turbines at four different locations that have been built up over the years at different times. But I'm hoping the Minister can provide me with what is the end of life for any of the current infrastructure at Snare? Thank you.

Speaker: MR. SPEAKER

Thank you, Member for Yellowknife North. Minister responsible for Infrastructure.

Thank you, Mr. Speaker. I'll just keep standing here. But it is a common practice for hydro utilities to upgrade and overhaul hydro infrastructure, to ensure we have continued operations of hydro assets in a safe and reliable manner with no foreseeable end of life date. Northwest Territories Power Corporation will continue to manage its assets, complete maintenance and overhauls to hydro infrastructure so we can extend the life of the hydro assets. Thank you, Mr. Speaker.

Thank you, Mr. Speaker. You know, I guess I'm happy to see that there is no current end of run but I'm not sure that's exactly how dams work. I think at some point they just eventually need to be replaced. I note that we are doing a complete overhaul on the Taltson system, which is going to be shut down, and the result of that will be some more efficient turbines to get some more power out of that. Are there any overhauls planned on the Snare Hydro System? Thank you, Mr. Speaker.

Thank you very much, Mr. Speaker. Mr. Speaker, I'm going to correct the Member to say that we have six hydro turbines that are ranging in size from 8 megawatts to 500 kilowatts. So I want to talk a little bit further because I think this is important.

Over at the Snare Rapids plant, we have completed a large an overhaul on unit number 2 back in 2022, and it's expecting to complete an overhaul on unit 1 in the next five years. Over at the Snare Falls plant, we completed an overhaul in 2017. At the Snare Cascades plant, which is owned by Tlicho and we lease it through at the Northwest Territories Power Corporation, an overhaul is expected to be completed in the next five years. And finally at our Snare Forks plant, Northwest Territories Power Corporation completed an overhaul on unit 1 in 2021, and we're expected to complete an overhaul in unit 2 in the next five years. So we are doing work at the Snare plants. Thank you, Mr. Speaker.

Thank you, Mr. Speaker. That's a lot of overhauls; I'm glad to hear that. I'm curious whether there is any plans to increase capacity on the Snare Hydro System or whether any of these overhauls will actually result in that? I note that about 20 percent of our power here is actually from diesel at Jackfish because of water levels and lots of different problems that occur at Snare over time to time. And there's no way that that system has capacity to open up another mine on it, allow for electrification of vehicles, or population increases. So are there any plans to increase capacity in the future on the Snare Hydro System? Thank you.

Thank you very much, Mr. Speaker. Mr. Speaker, I'm happy to see that the Member has did his homework too, because capacity building is so important. So I'm happy that the Member raised this question with me.

There is no plan to increase at the Snare system; however, the Department of Infrastructure, which I wear my other hat on as well, is looking into updating the hydro I can't even say it. Hydrology work right across the Northwest Territories, including the North Slave region. Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Thank you, Minister. Oral questions. Member for Thebacha.

Question 1409-19(2): Northwest Territories Power Corporation Board of Directors

Thank you, Mr. Speaker. Mr. Speaker, we all know in this House that the current makeup of NTPC's board of directors consists solely of deputy ministers from our government, and it has remained that way for seven years.

Does the Minister have any timeline for when a new group of board of directors will be appointed at NTPC? Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Thank you, Member for Thebacha. Sounds like a theme day here. Minister responsible for NTPC.

Thank you, Mr. Speaker. I'm starting to yes, there's definitely a theme happening here, right? Anyways, I want to so the Northwest Territories Power Corporation governance review, it continues, Mr. Speaker. Recommendations from that review will inform some of the decisions and on the next steps in this regard. So we expect this work to be completed within the life of this Assembly. So I think that's very good news, Mr. Speaker. The Member had talked about this being a seven year process. And, you know, we are getting to this. So I'd like to, you know, reassure that we are working on this. Thank you, Mr. Speaker.

Mr. Speaker, I know this current NTPC Minister was not the Minister when the decision was made to appoint deputy ministers to the board of directors; however, can the Minister tell us if Cabinet or NTPC has anticipated that it would be seven years and counting for the NTPC board of directors to be solely deputy ministers? Thank you, Mr. Speaker.

Thank you, Mr. Speaker. Mr. Speaker, I can only speak to what has been done since I became the Minister responsible for the Northwest Territories Power Corporation. And I want the Members to know that I support the undertaking of this governance review which will be able to determine the decision in this matter. Thank you, Mr. Speaker.

Mr. Speaker, it was stated in 2016, by the NTPC Minister of the day, that appointing deputy ministers to the board of directors was a cost saving measure that would save $1 million per year.

Can the Minister confirm if that turned out to be true and provide some dollar figures for how much money this decision has saved NTPC over the last seven years? Thank you, Mr. Speaker.

Thank you very much, Mr. Speaker. The Northwest Territories Power Corporation did benefit from some of the cost reduction in things like public relations, donations, public association dues, professional development, retainers, utility advisors, consultant contractors I can just go on. Especially in our board chair. So in the period of 2014 to 2022, the savings range from approximately $415,000 to about half a million dollars. Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Thank you, Minister. Final supplementary. Member for Thebacha.

Mr. Speaker, can the Minister provide the House with an update on the status of the Taltson Hydro Expansion and if she expects more funding confirmed in this year's federal budget? Thank you, Mr. Speaker.

Thank you very much, Mr. Speaker. Good progress continues to advance the Taltson Hydro Expansion Project with our Indigenous partners, Mr. Speaker. That's very important key to this project going forward. So we have now focused on two routes. So one is right across the lake here and the other one is right around the western side of the lake, and we hope to have a preferred route this year. We are working to collect Indigenous knowledge, environmental engineering information to be able to support the future regulatory applications. As well, Mr. Speaker, we continue to work towards a final business case for this project.

Taltson has been a key federal item that is related to Budget 2023, and we have had strong signals from federal ministers that they are supportive of this project. Mr. Speaker, you know, when we were down in Ottawa as Cabinet and attending FPTs, we continue to hear a theme from the federal government that, you know, we need to reduce GHGs and work together. But we don't want to get we'll not get confirmation of what's in the federal budget before it's announced other than to say that, you know, we've been working together and pushing it as our agenda. It is a mandate of this Assembly so that is something that is a priority for us in this government. Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Thank you, Minister. Oral questions. Member for Tu NedheWiilideh.

Question 1410-19(2): Northwest Territories Power Corporation Rate Increases

Thank you, Mr. Speaker. I wasn't around in 2019 when the MLAs got together and they went to a retreat and they put in all their wish list into a bucket, and then they came up with 24 recommendations. But part of those recommendations was very clear, that there will be no power increase. In the Northwest Territories, we got the highest power rates in Canada, next to Nunavut, Saskatchewan, and so on. And right now, in last year, just after the budget was ended, this government made an announcement to increase the power rates by 20 percent over a twoyear period.

Mr. Speaker, now that the public utilities board has squashed the power corporation's excessive demands for power rate increases, what is the Minister's plan to make up for revenue shortfalls that this increase was supposed to cover? Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Thank you, Member for Tu NedheWiilideh. Minister responsible for NTPC.

Thank you very much, Mr. Speaker. The Northwest Territories Public Utility Board has issued a decision on NTPC's rate application. The public utilities board gave very specific direction to NTPC and NTPC is filing a response to these directions. Again, Mr. Speaker, I need to say this again: It's the public utilities board's role to be able to determine final energy rates here in the Northwest Territories. Thank you, Mr. Speaker.

Thank you, Mr. Speaker. Just picking up on where the Minister left off there; my question is a twopart question: Is the power rate going to go up now when you bring back an application to the utility board; are we looking at another power increase? At the same time, Mr. Speaker, the Minister made the announcement to raise the power rates only after the 20222023 budget was passed last year, without the opportunity for debate in the House. I'm asking the Minister to commit to more transparency around rate increases and commitments to consult with Regular MLAs before giving direction to the power corporation. Will the Minister do this? Thank you, Mr. Speaker.

Thank you very much, Mr. Speaker. Mr. Speaker, again, the Northwest Territories Public Utilities Board is the body that determines rates for all utilities here in the territories. Northwest Territories Power Corporation has previously provided Regular MLAs information on rates. And, Mr. Speaker, we will continue to do so. Thank you.

Thank you, Mr. Speaker. So I take it that the power rates is going to be going up. So if that's the case, Mr. Speaker, then why do we have retreats? Why do we go to these things and bring our voices to the table when we're not consulted? You know, we got over 9,000 customers here in the Northwest Territories and, you know, we want to raise powers rates? Maybe it's time to review the power corporation and maybe quit giving out these bonuses.

Mr. Speaker, the high cost of power is breaking the backs of residents, small businesses, and big industry in the Northwest Territories. How does the Minister propose to reduce these costs and make more power rates affordable in the NWT? Thank you.

Thank you, Mr. Speaker. Mr. Speaker, the Government of the Northwest Territories energy policy seeks to balance reliability with sustainability and affordability. Projects such as the Taltson Expansion Hydro Project would allow for increased mining activity using sociallyaccepted, clean, green energy. Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Thank you, Minister. Final supplementary. Member for Tu NedheWiilideh.

Okay, thank you, Mr. Speaker. Unfunded infrastructure projects, mega projects, that are decades away from completions are not a solution. Northerners can count on what short and mediumterm solution is the Minister working on to provide our residents with relief from high rates of power and to also meet the mandate of this government that they put out in 20192023? Thank you.