Thank you. Once again I’m rising to continue the conversation regarding power costs here in the Northwest Territories. Without having to go through it at great length, we all know how this affects the everyday family and certainly the everyday business that’s trying to get by.
My question for the NWT Power Corporation Minister is that we all understand that restructuring could happen and that could take out some of the inefficiencies within the system.
Can the NWT Power Corp Minister explain what work is being done to analyze the inefficiencies in the system, and where does he see us moving forward in a positive direction so we can create a better system that works better for Northerners and hopefully drive costs for power down and makes it affordable for the everyday family? Thank you.
Thank you, Mr. Hawkins. The Minister responsible for the NWT Power Corporation, Mr. Miltenberger.
Thank you, Mr. Speaker. I was at the Energy Charrette where the reference that my colleague from Yellowknife Centre made in terms of the most complicated 65 megawatts the guest speaker had ever seen and I think it’s indicative of one of the challenges. We have two challenges. It’s to bring down the cost of generation and then there’s the cost of distribution and transmission. On the generation side we know that we have to get off diesel, and we’re investing and will continue to invest in things like LNG investment in Inuvik. We’re doing some groundbreaking work in Colville Lake with batteries, solar and diesel to have a maximum amount of solar penetration. We’ve put in some significant solar, as well, into Simpson.
Depending on the outcome of our borrowing limit, we intend and know we have to invest more money. We know that Yellowknife needs additional generation. We know that Yellowknife has existing diesel plants that are soon going to be reaching the end of their life. So we’re going to have to look at bringing in a cheaper form, a more inexpensive form of energy to run those power requirements.
At the same time, we know, from a structural point of view, how we set ourselves up with our various rate zones is a driver how our Territorial Power Support Program is applied for and where it’s used. How we are set up as a distribution system, as well, has to be looked at. So there are a number of issues, and we’ve committed, as a government, to make cost of living a priority. So, on the energy side, those are the areas we’ve got to look at. Thank you.
It’s my understanding that the Brighter Futures provided a bit of a promising direction if not a path for the NWT to take. Where does the NWT Power Corporation see the opportunity here to create a better system that works for folks and working to help see collective work come together to help drive down the price of power, make our system more reliable and certainly make a structure that makes sense for all Northerners? Thank you.
As we discussed in this House previously, one of the areas that we are carefully considering as a government is the request from the Town of Hay River in regard to their franchise agreement to see if we would consider putting a bid in on that. That would have a direct impact on potential structure, distribution structure. We’ve already committed publicly that once our borrowing limit is set, we would be prepared to invest money, significant money into the generation side once again here in Yellowknife.
For example, in Inuvik you could put in, an example would be some of that wind power that’s there, and you could cut the diesel production in Inuvik and Tuk in half by doing that kind of investment that would provide alternative energy on an ongoing basis while we wait for the eventual day when gas is going to be produced and available in Inuvik. Thank you.
The everyday person doesn’t really care about government policy until it affects them. Frankly, that’s probably the truth.
What energy policy do we need to do and work on, and what can we do today to ensure that we start delivering an energy policy that is delivering results to the everyday Northerner who is trying to get by? Thank you.
Thank you. As we move forward, we have a lot of the tools already. Depending on how we evolve in terms of distribution and generation, we have to look at things as I raised previously, the role and relationship of the Power Corporation. Right now it’s a stand-alone power corporation with a board. Given our close working relationship and financial investment, is that the best structure, could it be structured more efficiently and effectively any other way? We have to look at the distribution, and the Cabinet is going to be looking at the request from Hay River and responding to that in the not-too-distant future. We also need to look at, as we do that, as we evolve and if the system changes, we have to look at are we properly structured in terms of the Public Utilities Board structure as well.
So it’s not only the generation of energy, it’s going to be how we’re structured to deliver regulated. Thank you.
Thank you, Mr. Miltenberger. Final, short supplementary, Mr. Hawkins.
Thank you, Mr. Speaker. For my final supplementary, of course, when can we actually see something on the ground to see the emergence of new policy that will break ground on how we deliver power in the Northwest Territories? I’ll add that citizens themselves can’t wait much longer and we need a government that responds, that’s light on its feet to be delivering real results for the cost of living problem to Northerners. Thank you.
We have a number of documents that are currently available in terms of the energy planning. The Power System Plan for the Power Corporation and, as well, the final formal response to the Energy Charrette, which was in fact the most recent way that people could get involved, citizens could get involved in providing feedback and advice, to which they did in a very quality way that we’re going to look at responding to.
A lot of what we’re going to do is then going to be predicated on the final outcome of our borrowing limit, which will dictate how much we’re prepared to invest in the critical area of cost of living. Thank you.
Thank you, Mr. Miltenberger. Time for oral questions has expired. Item 8, written questions. Mr. Menicoche.
Thank you very much, Mr. Speaker. I seek unanimous consent to go to item 7, oral questions, on the Order Paper. Mahsi.
---Unanimous consent granted
