Thank you, Mr. Speaker. In my Member’s statements from earlier I was saying how increasingly difficult it is for residents and Members of this House to continue to stomach the bonuses that are paid to senior managers at the Power Corporation. Last year it was close to $600,000. Given the fact that rates are rising again, will the Minister responsible for the Northwest Territories Power Corporation, Minister Roland, instruct the board of the Power Corporation to immediately put a halt to the bonuses paid to senior staff?
Thank you, Mr. Ramsay. Mr. Roland.
Thank you, Mr. Speaker. Within the act itself there are certain arrangements that we work with. Even as the Minister responsible, there is a framework that I have to operate within in dealing with the board itself. The Public Utilities Board actually is one of the things that is reviewed, because that is part of the rate base and how they pay out those areas. The term being used with the Power Corporation is “at-risk system,” and the PUB, in fact, recommended that that level be reduced the last time it went forward.
The Government of the Northwest Territories owns the Northwest Territories Power Corporation. I think it is fully within our rights to instruct that board to stop paying out the $600,000 in bonuses like it did last year to senior officials at the Power Corporation, especially given the fact that many of our residents, especially in our smaller communities, cannot afford to pay their power bills. It is ludicrous that we allow that practice to continue to happen. Will the Minister instruct the Power Corporation board to immediately stop the bonuses paid to senior staff at the Power Corporation?
Mr. Speaker, the Power Corporation itself has undertaken a review from an outside source to look at the at-risk system. The PUB regulates that area and gives direction in that area, and they did the last review that happened.
The Member is right. As a Legislative Assembly we can give direction to the Power Corporation and make some movement in that area. We must recognize by doing that that it can have a fairly significant impact on their operation, as we would do as the Government of the Northwest Territories.
The other thing that residents in the Northwest Territories are going to have a very difficult time with is the fact that the current General Rate Application is premised on the fact that oil and world oil prices were $130 and $140 a barrel. That’s not the reality today, Mr. Speaker. I think the government has to instruct that board to revisit the current General Rate Application so that residents in the Northwest Territories are not going to be faced with these high increases in cost this winter. It’s not too late to say no to that GRA or at least revisit it, because those numbers that were included in the original GRA are not legitimate numbers today.
Mr. Speaker, the information that this has been filed has been put before the Public Utilities Board. They’re reviewing the information, and if they have concerns or questions with that, there’ll be further requests for backup information. Let’s be clear. The reason the rate rider has gone in is because it’s money spent. It’s not money that is about to be spent. We have already paid for a product that was higher than today’s price, and that is something that the Power Corporation is having to recover from.
Thank you, Mr. Roland. Final supplementary, Mr. Ramsay.
Thank you, Mr. Speaker. That’s awfully hard for a resident in a small community to understand — that they’re paying more money today for mistakes or costs the Power Corporation incurred in the past. I think it has to be more forward looking, and I do believe that the current GRA that is in play right now needs to be revisited. It is premised on high oil prices and high utility costs today that just are not a reality. Can we open this up? Can the Minister instruct the board to revisit the GRA?
The General Rate Application has been put forward and is being reviewed. The numbers are substantiated, or if the request is for further substantiation, that would be done and provided for.
The area of just making an arbitrary decision from the political side can have far reaching consequences into the actual operation of our sole provider of energy in the Northwest Territories. There is another company that is into the distribution side, but that still comes from our Power Corporation. So we must be careful in setting an arbitrary target on a political basis. We need to back up our own information.
I’d be prepared to have the Power Corporation come before Members to give information on the General Rate Application — what it’s based on and why it’s gone forward — before we make any decisions.
Thank you, Mr. Roland. Our time for question period has expired. The honourable Member for Yellowknife Centre, Mr. Hawkins.
Thank you, Mr. Speaker. I seek unanimous consent to return to item 8, oral questions, so I can have a question.
The Member is seeking unanimous consent to return to oral questions.
Unanimous consent granted.
