Debates of August 22, 2007 (day 15)

Thank you, Mr. Speaker. Today in my Member’s statement, I talked about my concern about how we are delivering power to our people in the North. I think that we need a clear strategy of where we are going to make sure we are delivering the best product to everyone. On top of that, I think we need to look forward and catch on to opportunities before us throughout Canada so we can harness our great potential here in the North. My questions, Mr. Speaker, are to the Minister of the NWT Power Corporation. So, Mr. Speaker, does the government have plans to develop a power generation and utilization strategy, in other words, a new hydro strategy, that will work to help develop and implement cheaper power for people of the North? Thank you, Mr. Speaker.

Thank you, Mr. Hawkins. The honourable Minister responsible for the NWT Power Corporation, Mr. Krutko.

Return To Question 182-15(6): Development Of New Hydro Strategy

Thank you, Mr. Speaker. Mr. Speaker, as we all know, through our business plans, I did commit. We are developing a hydro strategy in light of the change to develop our own hydro corporation. We are working with looking at mini hydro in communities. We are looking at the hydro potential to the pipeline. We are looking at hydro potential in regards to the expansion of Taltson, the diamond mines. In order to conclude that, we have directed the corporation to develop a hydro strategy which we are hoping to have completed and brought forward as a transitional document to the incoming government of the 16th Assembly. Thank you.

Thank you, Mr. Krutko. Supplementary, Mr. Hawkins.

Supplementary To Question 182-15(6): Development Of New Hydro Strategy

Thank you, Mr. Speaker. Mr. Speaker, with the Minister of the Power Corporation being the head of the Power Corporation obviously, is it part of their mandate or policy to ensure that we are delivering the most effective, affordable and cheapest power available? I am concerned that the NWT Power Corporation power rates are higher than they are when they are delivered by independent sources such as Northland Utilities. Is it the policy of the NWT Power Corporation to ensure that they are delivering the most affordable power to each home? Thank you, Mr. Speaker.

Thank you, Mr. Hawkins. Mr. Krutko.

Further Return To Question 182-15(6): Development Of New Hydro Strategy

Thank you, Mr. Speaker. Mr. Speaker, at the end of the day, the perfect solution will be to have hydro power in all of our communities. We all have similar rates and everybody pays the same price. Because of the system we have today, we have three different rate systems. We go through a PUB process. I think the system itself has to be looked at. Again, that is something that we are hoping to bring forward to the incoming government, 16th Assembly, so they can have a debate and also come forward through the strategy, through the homes that we are working on, further transitional document for the incoming government. Thank you.

Thank you, Mr. Krutko. Supplementary, Mr. Hawkins.

Supplementary To Question 182-15(6): Development Of New Hydro Strategy

Thank you, Mr. Speaker. As I understand it, a lot of this work is sort of already done. So, Mr. Speaker, I would like to find out what we are actually doing with this information. Mr. Speaker, we are moving forward on the Taltson project. I would like to find out how we are lowering our power rates for northerners. Are we going to eventually hook up the Taltson power through Yellowknife and possibly go through east to west and hook up some of our South Slave communities? Are we working towards this? Cheaper power is before us. The opportunity is before us. So with the information before us, what are we doing with that great information? Thank you, Mr. Speaker.

Thank you, Mr. Hawkins. Mr. Krutko.

Further Return To Question 182-15(6): Development Of New Hydro Strategy

Thank you, Mr. Speaker. Mr. Speaker, the challenge that we face is because we have such a small customer base by 40,000 people and trying to have the infrastructure and the cost to operate that infrastructure burdened by that 40,000, you have to find new customers. Again, you look at other provinces across the country and Quebec, Manitoba, B.C., who have developed their hydro industry around the export of power. As the North moves forward, we will have to consider that as a means of generating new revenues. We are looking at other revenue sources, such as I mentioned, the diamond mines, the pipeline, in regards to getting those customers to pay the majority of the cost to generate that power but, more important, for us to bring in more revenues so we are able to bring down the cost of power to residents of the Northwest Territories. Thank you.

Thank you, Mr. Krutko. Final supplementary, Mr. Hawkins.

Supplementary To Question 182-15(6): Development Of New Hydro Strategy

Thank you, Mr. Speaker. Well, Mr. Speaker, as many of us know here, the PUB keeps shooting down the one-rate zone because you can’t operate in isolation. In other words, as the Minister has pointed out, you can’t have one style of power generation here and another there and another there and they come at three different costs. In fact, you can’t harmonize the costs because of the different delivery systems that we have. So, Mr. Speaker, how to deal with this is right before us. We can start harmonizing our power generation by working together. As the Minister said, we can start putting power to our diamond mines. In the sort of bigger picture moving forward view and strategy, will the Minister of the NWT Power Corporation work to ensure that, when we develop the Taltson project further, he will ensure that the Yellowknife system will be hooked into this as it goes by to the diamond mines and that will help with the territorial power rates by bringing everyone’s power rate down, including Yellowknife? Thank you, Mr. Speaker.

Thank you, Mr. Hawkins. Mr. Krutko.

Further Return To Question 182-15(6): Development Of New Hydro Strategy

Thank you, Mr. Speaker. Mr. Speaker, in regards to the comment the Member made regarding the PUB saying we are not interested in one rate, I don’t think that is the case. The PUB has made it clear that it has to be a policy decision by this Legislature and the government of this Legislature to establish that policy is clear and concise on exactly what we want to subsidize and what we don’t want to subsidize. Again, it is a policy decision that has to be made by this Legislature to look at the rate systems that we have and direct the PUB to consider that. Thank you.