Debates of May 31, 2004 (day 16)

Mr. Speaker, thank you very much. My question is for the Minister responsible for the Power Corporation, as well as the Premier. In the face of rapidly rising fuel prices, does the government have any plans to alleviate the unfair and disproportionate burden being placed on NWT residents who live in smaller communities where electricity is supplied by diesel generators? Thank you.

Minister responsible for the Power Corporation, Mr. Premier, Mr. Handley.

Return To Question 181-15(3): Rising Fuel Prices And Power Rates

Thank you, Mr. Speaker. Certainly we are monitoring what is happening with fuel prices. I might also mention, Mr. Speaker, that throughout the North in the communities with diesel powered generators, we do have a power stabilization program in place that ensures that customers are not subject to the rise and fall of prices on a continual basis. Thank you, Mr. Speaker.

Supplementary, Mr. Menicoche.

Supplementary To Question 181-15(3): Rising Fuel Prices And Power Rates

Mr. Speaker, I am glad the government is recognizing that rising fuel prices will affect elders on fixed incomes more than other people. Does the government have plans to introduce power subsidies for the elders, like existing fuel subsidies with regard to power rate prices? Thank you.

Premier, Mr. Handley.

Further Return To Question 181-15(3): Rising Fuel Prices And Power Rates

Mr. Speaker, my information now is that the stabilization funds that we have in the Power Corporation have adequate flexibility to be able to accommodate for the higher prices for the time being, so we don’t have to pass it off to customers. Mr. Speaker, at some point, when the maximum stabilization funds are reached, then we may have to go for what’s called a rate rider to increase power. At that point, then we would have to look at issues like the Member is referring to, but it’s not a decision the Power Corporation would make itself. It would to take this to the Public Utilities Board. Thank you, Mr. Speaker.

Supplementary, Mr. Menicoche.

Supplementary To Question 181-15(3): Rising Fuel Prices And Power Rates

Mr. Speaker, given that the NWT is the only jurisdiction in Canada that does not have a single pricing policy for electricity and given that the current situation with rising fuel prices is making inadequacies inherent in our policies painfully apparent, does the government have plans to get in step with the rest of Canada and charge all of its citizens the same price for electricity?

Mr. Premier, Mr. Handley.

Further Return To Question 181-15(3): Rising Fuel Prices And Power Rates

Mr. Speaker, no, at this point in time we do not have plans to move to a one-rate system. That’s something we may, in this assembly, want to look at. I am not sure. There are no definite plans to do it. In the longer term though, we would certainly want to consider trying to achieve that goal. Mr. Speaker, I should also point out that we do, at this time, set the prices in all of the diesel communities based on the Yellowknife price or cost of power per kilowatt for the first 700 kilowatts for all residents. That is enough to run all but larger homes, so I would hope that residents would also be careful with the consumption in their houses if they find they are going over 700. But for the first 700, it should be and will be the same as the Yellowknife rates. Thank you, Mr. Speaker.

Final Supplementary, Mr. Menicoche.

Supplementary To Question 181-15(3): Rising Fuel Prices And Power Rates

Thank you, Mr. Speaker. Just with regard to equalizing how communities are paying for power, three years ago when it was a problem to supply electricity to Yellowknife due to low water levels, all the people in the NWT were asked to subsidize people in the capital by paying higher rates. Today when there is a problem supply of electricity in smaller communities due to rising fuel prices, as in this case, will the government be asking the people in Yellowknife to repay the favour by charging them higher rates to offset the hardships faced by smaller communities? Mahsi.

Minister responsible for the Power Corporation, Mr. Premier.

Further Return To Question 181-15(3): Rising Fuel Prices And Power Rates

Mr. Speaker, as I said earlier, all of the rates for the first 700 kilowatts are subsidized back to the Yellowknife price. So if we find that the prices are going up in the diesel-generated power communities, then it will be the government who will be subsidizing through our power subsidy program, not Yellowknife, but the government will be subsidizing all those communities to bring them back to the Yellowknife prices. Thank you, Mr. Speaker.