Debates of November 4, 2009 (day 14)
QUESTION 164-16(4): RECOVERY OF ELECTRICAL UTILITY CAPITAL COSTS
Thank you, Mr. Speaker. My questions today are addressed to the Minister responsible for NTPC, the Power Corporation. I’d like to ask the Minister, in terms of planning for capital projects and major infrastructure replacements, I’d like to ask him how NTPC plans for and puts in place major capital projects or replacements. Thank you.
Thank you, Ms. Bisaro. The honourable Minister responsible for the Northwest Territories Power Corporation, Mr. Roland.
Thank you, Mr. Speaker. The Power Corporation plans for maintenance as well as replacement of assets on an ongoing basis, so it would be part of their corporate plan that they put forward. Thank you.
Thanks to the Minister for that answer. I guess I was referring and I needed to be a little more explicit, but for extraordinary expenditures where you have an unforeseen capital cost or an unforeseen expenditure of a fairly large nature, what kind of planning goes in place for those sorts of things? Thank you.
Mr. Speaker, in situations where there was an unforeseen cost, for example, the Member used in her statement the high cost last year as well as the rate rider, that they’re termed as, when there’s planning for a certain cost of running our diesel plans, for example, those costs would initially be absorbed by the Power Corporation, but they would have to put forward a request to the Public Utilities Board for an increase or a rate rider. On an annual basis or an ongoing basis, there are times that general rate applications go forward to increase the overall cost of service and end up having that passed on to the customer. Thank you.
I would like to thank the Minister again for that answer. I would like to follow it up a bit with a question relative to whether or not the Power Corporation has ever considered a different process in an effort to try and minimize the cost to customers on their power bills, and in order to try and eliminate rate riders and to keep things on as much of an even keel as possible. Has the corporation ever considered a different model for the recovering of capital costs other than the current one? Thank you.
Mr. Speaker, I’m not aware if the board at this point have had discussions. I’m sure, as they go through their corporate plan, they have much discussion about how they would provide the information and provide for the service necessary. More importantly, as the Government of the Northwest Territories, we have looked at the issue around the capital plan and had some discussions from our side to see what could be done differently. As well, as the Member is aware, through the Ministerial Energy Coordinating Committee we’ve had some work done looking at our rates, subsidization and regulation around delivery of power in the Northwest Territories as well. Thank you.
The Minister’s answer points out two things for me; one is that this Assembly, this government has little input, can provide little direction to the NTPC board and the Minister referenced that he’s not really aware of what the board has done in this particular instance. I’ve totally lost the other one out of my head, so I will go on to my next question and that is, to the Minister: how will the replacement of the Bluefish hydro dam be funded? Thank you.
Mr. Speaker, the Bluefish replacement project is something that’s been planned for by the corporation. They’ve been looking at that facility for quite a number of years and, again, part of their corporate plan would be for the replacement of that asset. Within ongoing dollars we have available, we would also have to look at if there is higher cost on the project to see how that would be dealt with. I will get that information and provide that to the Member. Thank you.
Thank you, Mr. Roland. The honourable Member for Great Slave, Mr. Abernethy.