Debates of March 29, 2004 (day 10)

Thank you, Mr. Speaker. Again, my questions are for the Premier with respect to power-related issues. Mr. Speaker, information would indicate that with respect to the Taltson Hydro Dam expansion that our government has invested a fair amount of money in posing that question as to whether or not that is a good idea, and whether or not there is a market for additional hydro from the Taltson River, at least $1 million on an engineering study and at least $1 million on an environmental study. The market that is being targeted for that hydro is from mining companies, and we have heard reference to the Snap Lake mine as one of the potential customers for that. Mr. Speaker, I realize that we need to invest money in order to make money, and this seems to have some financial viability for the Power Corporation and ultimately for this government, but I am wondering how confident the Premier is with respect to those markets given the amount of money that is being invested in pursuing this Taltson expansion. Thank you.

Mr. Premier, Mr. Handley.

Return To Question 105-15(3): Taltson And Bear River Hydro Projects

Mr. Speaker, there has been about $2 million invested up until now. Most of that money is from the Power Corporation, not from the government, and if the Member wanted a break out I would have to get the numbers for her. Mr. Speaker, we have had letters of interest from all of the operating mines in the slave geological province telling us that they are interested in the potential of hydro power if we can make it available. We don’t have any negotiated deals signed off yet, but all of the mines are interested if we are able to do that. As well, Mr. Speaker, there is also opportunity to sell that power south, and we will do some work over the next few months to look at that as an alternative. Thank you, Mr. Speaker.

Supplementary, Mrs. Groenewegen.

Supplementary To Question 105-15(3): Taltson And Bear River Hydro Projects

Thank you, Mr. Speaker. Mr. Speaker, when the whole idea of generating additional hydro power in the Northwest Territories began to be spoken of, there have been studies on the books for years about this, but most recently in the 14th Assembly there was a great deal of anticipation and excitement about this potential because of all the merits of hydro power. I still think that we need to be cautious, ensure that we have a good business plan in front of us as we pursue some of these initiatives. So I would like the Premier, if he would, to also speak to the challenges of the transmission. He has spoken to the markets and the letters of interest from the mining companies, but the transmission infrastructure is always a big question in this equation given the life of the mines and their requirements, and I would like to know whether the Premier believes that those transmission issues can be addressed adequately. Thank you.

Minister responsible for the Power Corporation, Mr. Handley.

Further Return To Question 105-15(3): Taltson And Bear River Hydro Projects

Thank you, Mr. Speaker. Certainly from a technical perspective, the transmission issues are doable. We have checked out that a 400 and some kilometre line would be necessary, is feasible, particularly if we have all of the mines on contracts with us. We do have other issues that we need to deal with in terms of the length of contracts and so on. From a financial perspective of the cost of putting a line from Taltson to the diamond mines, it is expensive, it is in the neighbourhood of $170 million. The viability of that, or the feasibility and the economic viability is determined largely on the price the mines are ready to pay, and the length of contracts we can enter into, as well as our estimate of the potential power that will continue to be needed in that region. Thank you, Mr. Speaker.

Final supplementary, Mrs. Groenewegen.

Supplementary To Question 105-15(3): Taltson And Bear River Hydro Projects

Thank you, Mr. Speaker. Mr. Speaker, I would just like to further ask the Premier a question with respect to the Bear River proposal. I know we haven’t invested as much time and money in that particular initiative, but the market that has been suggested there is the pipeline. I am not as confident perhaps as the Premier is that that is a market that is going to pan out. So before we go charging down that path, I would like to ask the Premier if there are any alternative proposed markets for hydro in the foreseeable future for the Bear, or is the government hinging all of their hopes for this resource on the pipeline? Thank you.

Minister responsible for the Power Corporation, Mr. Handley.

Further Return To Question 105-15(3): Taltson And Bear River Hydro Projects

Mr. Speaker, the Member is correct that not nearly as much technical work has been done on the Bear River potential. We have certainly had good discussions with Imperial as the leading partner in the pipeline project. We know that they are interested. Again, as in any business deal, price is important to them. We know that they are interested in initially about 90 megawatts of power. That is equivalent to the amount of power the Power Corporation sells to all customers in the Territories right now. So it would double the business the Power Corporation does, which is necessary to get over the economies of scale issues, as was mentioned in the briefing we gave to AOC at noon today. Mr. Speaker, if this project works out, then they would need up to 300 megawatts of power, making it a very viable one to have a hydro transmission line right down the valley serving all of the communities along that route from Inuvik all the way south. The other alternative, Mr. Speaker, is if we work out a deal with the pipeline then it also opens up a market to sell power south as well. So that one has huge potential, but neither of these projects will move ahead unless they have regional support. Thank you, Mr. Speaker.