Thank you, Mr. Speaker. As all of us gave Member’s statements on the Power Corp today, I have questions for the Minister responsible for the NWT Power Corp. Can the Minister advise me if the NWT Power Corporation can re-examine their cost allocations in non-tangible areas such as profit, interest and amortization and try to lower the costs in those three areas?
Thank you, Mr. Beaulieu. The honourable Minister responsible for the NWT Power Corporation, Mr. Roland
Thank you, Mr. Speaker. When the Power Corporation files for any rate applications or changes to its rates, it goes under review by the Public Utilities Board. It looks at the whole gamut of the operation in the Power Corporation. Those are areas that would be reviewed.
Amortization deals with the capital expenses of the public corporation and replacing assets that are on the ground that would need to be replaced, such as power poles, generation facilities and so on. We try to do the best we can in dealing with those areas. In fact, I believe we provide information to Members on the breakdown of those particular areas that affect the price rates that we pay in our communities.
Mr. Speaker, considering that the fuel resupply had occurred when fuel costs were at their highest, can the Minister advise if the NWT Power Corporation can do a comprehensive review of what they are charging the communities that are currently locked into the high cost of fuel that was resupplied this summer?
Mr. Speaker, the fuel resupply is something we work with the Department of Public Works and Services, Petroleum Products Division on. We combined the services I believe a couple of years ago so that we can enjoy a better sale price, if we can put it that way, on bulk purchasing of our product and our storage facilities in communities. The unfortunate thing is that when resupply happened, it was at about the highest price of oil throughout the season. That’s a difficulty we face. Already the Power Corporation is having to deal with the higher prices from future years. That’s why a rate application went into the system.
As for trying to go back and redo it and look at it for this fiscal year, that would be very difficult, because the Power Corporation operates under, I guess in a sense, the evaluation of the Public Utilities Board, which looks at the operation and what it can charge for rates in communities.
Mr. Speaker, in addition to the regulatory regime that directs the Power Corp and helps the Power Corp set their rates, can the Minister direct a comprehensive review of the NWT Power Corporation to examine its full operating costs, especially in the area of how they acquire the infrastructure?
Mr. Speaker, the process we’re involved with now is looking at the energy costs in the Northwest Territories through the Ministerial Energy Coordinating Committee as well as going through our business plans, looking at alternatives of operation. I met with the Northwest Territories Power Corporation board and discussed with them some of the impacts in the Northwest Territories. We need to definitely look at all of the operation. As Member Groenewegen stated, don’t leave any stone unturned.
Thank you, Mr. Roland. Final supplementary, Mr. Beaulieu.
Thank you, Mr. Speaker. It appears that other companies in other jurisdictions that provide power with hydro are able to provide that power to their customers at a much lower rate than the NWT Power Corporation is able to do. Can the Minister direct the NWT Power Corporation to examine a way to reduce the costs of hydro to the communities?
Mr. Speaker, the process that is in place right now is one, again, where the rate structure that’s in place is one the PUB operates under. We’ve heard one of the Members talk about community rate zones or postage stamp areas. In the last process when that issue was discussed, the Public Utilities Board stated that it would be up to the Assembly to decide what structures would be put in place. We couldn’t say for ourselves that we could direct the Power Corporation to lower rates in hydro communities alone. We would have to look at a structure through this forum here and decide if we want to make changes to our legislation that could affect how rates are looked at and then how the PUB would regulate that from that point on. So we’re prepared to look at all options that are before us in the Territories, but the direction for that side of it would have to come from this House.
Thank you, Mr. Roland. The honourable Member for Great Slave, Mr. Abernethy.
