Continue, Mr. Pollard.

Introductory Remarks

Thank you, Mr. Chairman. Mr. Chairman, I am pleased to appear before the committee in the stead of the Premier, who is the Minister responsible for the Power Corporation, to address matters of interest and concern respecting the Power Corporation. After the opening remarks, if it is the committee's wish, I would ask Mr. Ron Kidd, President and Chief Operating Officer, to join me at the witness table, Mr. Chairman.

Mr. Chairman, the Government of the Northwest Territories assumed ownership of the Northwest Territories Power Corporation on May 5, 1988. The corporation is established under the terms of the Northwest Territories Power Corporation Act. The mandate of the corporation is:

i) to generate, transform, transmit, distribute, deliver, sell and supply energy on a safe, economic, efficient and reliable basis;

ii) to supply water and sewerage services;

iii) to undertake programs to conserve energy;

iv) to ensure a continuous supply of energy adequate for the needs and future development of the territories; and,

v) to undertake any other activity authorized by the Executive Council.

In addition, Mr. Chairman, the corporation's operation has been guided by business principles and has been managed successfully as a stand-alone enterprise. This is demonstrated in the record of operational decisions, in corporate policies, and is reflected in the development of this capital budget.

On April 1, 1992, responsibility for the corporation's rate setting shifted from the Executive Council to the Public Utilities Board. At that time, the corporation became fully regulated, according to the Public Utilities Act, and was subject to the same regulatory review process as private sector utilities operating in the Northwest Territories.

At this time, the corporation has had a general rate application before the Public Utilities Board and public hearings are scheduled for December 7 to 9 in this particular year in Hay River, Northwest Territories. The corporation's 1994-95 capital budget was presented to the corporation's board of directors on November 19, and received approval at that time. With that background, I will conclude my remarks and would be happy to respond to any questions committee Members may have. Thank you, Mr. Chairman.

Thank you. At the beginning of the presentation, the Minister indicated that he would like to

bring in the witness. Do we have the concurrence of the committee?

Agreed.

---Agreed

Thank you. Sergeant-at-Arms, escort the witness, please. Thank you. The Minister also indicated that there are no money items. This is purely for information. Mr. Antoine, chairman for the Standing Committee on Finance.

Standing Committee On Finance Comments

Thank you, Mr. Chairman. The committee acknowledges the improved reporting format presented by the Northwest Territories Housing Corporation for this capital review. The reporting format could be further enhanced by presenting consistent five year plans that are comparable from year to year. A consistent reporting format over a five year period would illustrate changes to plans and the addition of new projects in the planning cycle.

Members are concerned about the corporation's apparent inability to harness and market excess system capacity. This was noted, specifically, in relation to the Taltson River power generating station. Committee Members have serious reservations about the economic feasibility of privatizing the Power Corporation. Therefore, the committee looks forward to receiving a full briefing on the government's plans in this regard. Further, the committee will take the opportunity to assess the information that the government used in drawing any conclusions reached to date.

That is the report of the Standing Committee on Finance on the Northwest Territories Power Corporation. Thank you, Mr. Chairman.

Thank you. My apologies, I forgot to ask the Premier to introduce the witness. Madam Premier, would you please introduce the witness for the record.

Yes, Mr. Chairman. This is Mr. Ron Kidd, President of the Northwest Territories Housing Corporation, located in Hay River.

General Comments

General comments on the NWT Power Corporation. Mr. Allooloo.

Thank you, Mr. Chairman. I see in the capital plan that they are doing some work in Hall Beach. As you know, Madam Minister, the tanks of the power plant in Hall Beach are right in the middle of the community and the community's concern is that, in the event of an accident, a spill or an explosion, the big tanks are right in the community. Would the Power Corporation consider moving the tanks to a safer place? The power station could stay because it is physically impossible to move.

Madam Premier.

Mr. Chairman, I'll defer the question to Mr. Kidd.

Mr. Kidd.

Mr. Chairman, my understanding of the question is that there is a desire to move the power plant in Hall Beach, is that correct?

Mr. Kidd, I believe that was the question.

The tanks.

Mr. Allooloo.

Mr. Chairman, the witness could use a translation device so I can hear properly. I'll rephrase my question. I know there is some work that is going to be done in Hall Beach. The tanks are right in the middle of the community and the community has concerns about accidental spills or explosions, which would affect a lot of community buildings. These are big tanks. I wonder if the corporation would consider moving the tanks, and building a pipeline because it is not feasible to move the power plant at this point. Thank you.

Thank you. Mr. Kidd.

Mr. Chairman, at this point, the corporation has no plans for moving the tanks in Hall Beach. The capital item that appears is the completion of the work under way this year. The difficulty with respect to moving tanks, is the extreme capital cost that is associated with doing something like that and the ability of our customers to pay for such a cost.

Thank you. Mr. Allooloo.

Thank you, Mr. Chairman. Would the corporation work with the community, so that the danger of accidental spills or explosions would be minimized? Thank you.

Thank you. Mr. Kidd.