Debates of October 23, 2008 (day 2)

Date
October
23
2008
Session
16th Assembly, 3rd Session
Day
2
Speaker
Members Present
Mr. Abernethy, Mr. Beaulieu, Ms. Bisaro, Mr. Bromley, Hon. Paul Delorey, Mrs. Groenewegen, Mr. Hawkins, Mr. Jacobson, Mr. Krutko, Hon. Jackson Lafferty, Hon. Sandy Lee, Hon. Bob McLeod, Hon. Michael McLeod, Hon. Robert McLeod, Mr. Menicoche, Hon. Michael Miltenberger, Mr. Ramsay, Hon. Floyd Roland, Mr. Yakeleya.
Topics
Statements

Question 21-16(3) Review of Electricity Regulation, Rates and Subsidy Programs

Thank you, Mr. Speaker. I’d like to follow up on the questions for the Minister responsible for the Power Corporation. Does the current review of electricity rates that is in process include a review of the Power Corporation performance, its corporate innovation and so on?

Speaker: Mr. Speaker

Thank you, Mr. Bromley. The honourable Minister responsible for the Power Corporation, Mr. Roland.

Thank you, Mr. Speaker. The work that we’re doing on the Ministerial Energy Coordinating Committee and looking at the structure, the rates, delivery, energy generation…. We’re looking at quite a number of options — opening the books, in a sense, to options that are out there. Members have suggestions when we go forward with this paper looking for further input as to other options that we may have missed.

Again, going on what has been stated before — I said it and Member Groenewegen said it earlier today — we should not leave any stone unturned when it comes to power generation and delivery in the Northwest Territories and the structure of the corporation.

I would like to acknowledge that there are many issues that the Power Corp is struggling with. There are some of the increasing efficiencies we’ve learned about and that are becoming available technically that make it harder to service the capital the Power Corp has to look after.

I think there could have been a much more innovative response to this and more innovative or progressive adoption of this technology.

Given this and the Minister’s comments, would he commit to starting a thorough and independent review of the Power Corporation which would include a possible restructuring to address all these issues?

Mr. Speaker, as we go through this process of developing the paper that we can bring forward to Members and looking at the option of what the Power Corporation is, how we deliver energy in the Northwest Territories, rate structures, regulation… There are a whole number of areas: the subsidy program itself, as well as what the Member has requested. I will take that message back to the energy coordinating committee and look to see how that can be implemented. We’ve had discussion about the distribution structure review. In a sense, as we go through these next steps, we as Members of this Assembly will be looking at those questions. Again, I’m prepared to sit down with Members and go through this in more detail and look at options that are available to us.

I appreciate those comments from the Minister. I think this is timely; a lot of our public are calling for it. I’m wondering if included in that could be the whole relationship with the Public Utilities Board. I haven’t heard the voice of the Public Utilities Board in this government. I wonder if there’s a way we could bring them to the table and get their perspective on this whole business. I know they’re saddled with some responsibility for at least the financial end of the Power Corporation’s business.

Mr. Speaker, the role of the PUB, as well as the role of the Power Corporation in the Northwest Territories, is one that is directed by the legislation that we as an Assembly control. There’s always opportunity to bring them in to have a discussion about the legislation they operate under. I stated earlier the need to look at some of the legislation that we can impact and that should pose potential changes for the future.

Speaker: Mr. Speaker

Thank you, Mr. Roland. Final supplementary, Mr. Bromley.

Perhaps I wasn’t talking so much about changing the Public Utilities Board as giving them a voice so that we can be fully informed. I think we are doing a review of the Power Corporation, or at least recognize the need for it. Where is the voice of the Public Utilities Board here?

That leads me to my final question. The last Assembly adopted, I believe it’s called, the NWTEC, Northwest Territories Energy Corporation, or something like that, that’s now the umbrella organization. How does that corporation fit with the responsibilities of the Power Corporation and protecting our consumers, working to the benefit of our residents?

Mr. Speaker, one could say the reason that legislation was adopted by the previous government was to protect the residents of the Northwest Territories. For example, if the Power Corporation itself, which is fully regulated by the PUB…. I must say, on the PUB side their voice is being heard through this process, as the Minister responsible seeks their input in some of the work he brings to the table. That aside, the rate structure, or the structure that was put into place around the hydro corporation side of things, was done in a way that would minimize impact on the rate base or the residential groups and commercial groups out there that are now regulated.

For example, if we were to do hydro expansion within the existing framework, all of those costs per capita would end up being borne by the rate base of the Northwest Territories or that region or community. It was felt that in today’s framework, that would not be affordable for individuals or companies. Instead, for example, the Taltson is outside that system. It’s going to be paid for by industry if the plan moves ahead as it’s been designed.

Speaker: Mr. Speaker

Thank you, Mr. Roland. The honourable Member for Nahendeh, Mr. Menicoche.