Mr. Speaker, I would like to advise Members of the pending changes to the regulatory regime in which the Northwest Territories Power Corporation operates. Since purchase of the corporation from the federal government in May 1988, regulation of the corporation has been a combined responsibility. The Government of the Northwest Territories has had authority in the areas of budget approval and rate setting, while the Public Utilities Board has been responsible for revenue requirements and terms and conditions of service.
It was the previous government's intention, and I would affirm the intention of this government, to establish the Northwest Territories Power Corporation as a going concern responsive to northern needs and to offer the corporation for private sector participation.
Consistent with that objective, the Northwest Territories Power Corporation Act was amended during the eighth session of the 11th Assembly. This amendment gave the Public Utilities Board, the PUB, the authority to set the rates of the corporation. This regulatory regime is consistent with that of Centra Power and Northland Utilities and will come into effect April 1, 1992.
Mr. Speaker, the Government of the Northwest Territories maintains authority over the corporation, as owner, and may issue directives to the corporation as required. The corporation remains accountable to this Assembly through myself, as Minister responsible for the Northwest Territories Power Corporation. ,
The Public Utilities Board was established to protect the public interest in the supply of energy throughout the Northwest Territories by public utilities and to remove the opportunity for political influence. As of April 1, the Northwest Territories Power Corporation will be subject to the same review, accountability and regulation as any public utility operating in the Northwest Territories.
Since 1988, the corporation has prepared for transfer to an independent regulatory environment. In December 1989, the corporation made a submission to the Public Utilities Board with respect to revenue requirements and terms and conditions of service. In 1990, at -the request of the Government of the Northwest Territories, the Public Utilities Board conducted an electrical rate structure review of all utilities, including the NWT Power Corporation. Finally, in
April 1991, the corporation submitted a cost of service methodology to the Public Utilities Board. Each submission to the Public Utilities Board included a thorough public consultation process and resulted in clear directives from the PUB to the corporation.
During the next several months, the corporation will participate in public hearings into its current revenue requirement submission. The corporation then intends to file a cost of service study, incorporating the PUB's December 1991 recommendations, and to file a rate zone proposal.
I am confident that these regulatory changes, coupled with operational experience, will result in further improvements in the delivery of electrical service and profitability by the corporation. Thank you, Mr. Speaker.