Debates of March 24, 2010 (day 6)

Date
March
24
2010
Session
16th Assembly, 5th Session
Day
6
Speaker
Members Present
Mr. Abernethy, Mr. Beaulieu, Ms. Bisaro, Mr. Bromley, Hon. Paul Delorey, Mrs. Groenewegen, Mr. Hawkins, Mr. Jacobson, Mr. Krutko, Hon. Jackson Lafferty, Hon. Sandy Lee, Hon. Bob McLeod, Hon. Michael McLeod, Hon. Robert McLeod, Mr. Menicoche, Mr. Ramsay, Hon. Floyd Roland, Mr. Yakeleya
Topics
Statements

QUESTION 73-16(5): TALTSON HYDRO EXPANSION PROJECT

Thank you, Mr. Speaker. I’d like to pursue our long-suffering Premier here with another round on the Taltson project. This project, of course, is embedded within the context of our NWT Hydro Strategy which was put out in 2008. I’ve commented in the House here and in committee a number of times on that draft strategy. I believe other Members have. There is no evidence that I have seen that any of those comments have come to roost anywhere. I think that it’s time that we did finalize that strategy, because a good vision would help guide the development of projects such as this and avoid this sort of situation where we’re trying to do things a little bit johnny-come-lately.

Will the Premier commit to leading now a final discussion towards a vision for a 50-year Hydro Strategy?

Speaker: MR. SPEAKER

Thank you, Mr. Bromley. The honourable Premier, Mr. Roland.

Thank you, Mr. Speaker. I would say I believe one of the Members mentioned 2003; 2003-2010 is not a johnny-come-lately approach. In fact, it has been well thought out and coming up with a business case that makes this work more. So towards the Member requesting that the Hydro Strategy be looked at again and updated with a more updated vision as to where we go, yes, let’s sit down together in committee. I believe there has been some commitment made and the Ministerial Coordination Committee along with Members would be glad to sit down and renew that strategy and update it. Many things have changed since that was initially put together.

Thank you, Mr. Speaker. I said johnny-come-lately because this side of the House at least is not convinced at all that sufficient consideration has been given to the public good in this project.

New considerations such as we have seen here today will not stop the process as the Premier implied. In fact, just last month Deze Corporation and the Hydro Corporation came up with a brand new un-contemplated place to cross Great Slave Lake. So now there’s a whole new process starting there. Of course, that means we don’t know what the routing is from the north side of the lake to the mines.

Another clarification is of course that what we’re saying does not preclude servicing the diamond mines at all. I don’t think we want that. So there is no settled route yet to the mines from the north side of Great Slave Lake, nor obviously a crossing point. This is an opportunity to focus on a crossing point that is selected in a way that provides the benefits of which we have been speaking. Will the Premier direct the Hydro Corporation to acknowledge and act on this direction?

The developer’s assessment report is out there. It has gone through hearings and, in fact, the Member has stated that the alternative line or routing in that one area is a result of that environmental review and the request by the band to go around the very significant and important area of the Lockhart River. That is being looked at. That option is being developed and will be presented on that basis. That additional cost would have to be borne by the project. That is what I keep going back to, to look at other routings, and we have provided that information to Members of those estimates of alternate routings, then add to the sale of kilowatt hours we need the customer base to be able to sell it to. If we can’t sell it, then we are unable to build it as we would have it in this day and age.

Again, I could request the Hydro Corporation representatives to make a presentation to committee on the latest.

Speaker: MR. SPEAKER

Thank you, Mr. Roland. The time for question period has expired; however, I will allow the Member a supplementary question. Mr. Bromley.

Thank you, Mr. Speaker. I appreciate both commitments from the Premier there. Just to follow up on the greenhouse gas emissions, again the alternative routing does not preclude this, indeed, nor would we want it to. I think that’s a major objective that we want to retain.

The Hydro Corporation has shown incredible patience in awaiting agreements with the diamond mines for the power. Would the Premier direct the Hydro Corporation to also have discussions -- and this gets to his last point -- with Avalon, with Tyhee, with NICO, with Yellowknife, with Behchoko, to establish their interest and ability to pay for additional power, as some or all of these are somewhat diesel power consumers, as are the mines?

As the Government of the Northwest Territories we are keenly interested in working with partnerships out there and expanding our hydro, for example. I think the Member can, although we said earlier that he has spoken on a number of occasions around the Hydro Strategy and alternative energies and has not seen any fruition, I would say, to take a little bit of claim here. We over the next number of years are going to invest $60 million in alternative energies, run-of-the-river technology. So we’re starting to move in that direction. It is a slow process, granted, but we are in fact moving in that direction. We’ll continue to have that direction. I will send a message back to the board that they need to in fact engage with these partners, potential partners and potential customers, for replacement of our diesel facilities. That they continue that as well as our Ministerial Energy Coordinating Committee.

Speaker: MR. SPEAKER

Thank you, Mr. Roland. Final supplementary, Mr. Bromley.

Thank you, Mr. Speaker. Of course the last two points we’ve raised means that they could operate together with an alternative routing to provide both for the diamond mines and these other customers in a way that would join the grids and we would enjoy those benefits.

My last question is related to the diamond mines. We’ve recently had occasion to meet with some of the companies and we’re pleased to hear that they’re extending their mine life considerably as they find new reserves and come up with lower cost means of production. This provides again a window of opportunity that might add a little tolerance to if this sort of approach did take another six months in the process.

How much have the diamond mines lives been extended, does the Premier know, in the last two or three years? My impression is it’s quite considerable and would reflect positively on the power agreements that we’re working on establishing.

I don’t have that information offhand, but my understanding -- and we’ll provide the accurate information from Minister Bob McLeod’s office -- for example is that Diavik is talking in the neighbourhood of 20 years. We’ve got Gahcho Kue about to potentially come on-line, which was a whole new mine. We have BHP that is the shortest mine life right now. And Snap Lake’s underground operation I have yet to get the information there, but 12 years, as I understand. If we were able to provide a cheaper form of energy that could potentially grow, that’s something that we hope to achieve through this process and is one of our goals.

Speaker: MR. SPEAKER

Thank you, Mr. Roland. Item 8, written questions. The honourable Member for Nahendeh, Mr. Menicoche.

Thank you very much, Mr. Speaker. I seek unanimous consent to return to item 7 on the Order Paper.

---Unanimous consent granted,

Speaker: MR. SPEAKER

The honourable Member for Sahtu, Mr. Yakeleya.