Mr. Chairman, I am pleased to present the preliminary 1995-96 capital budget for the Northwest Territories Power Corporation.

Mr. Chairman, the budget calls for expenditures of about $20 to $24 million and reflects the corporation's objective of working with communities throughout the territories to improve electrical generating facilities and to develop alternate energy sources. Examples include the Dogrib power project, the potential of using natural gas to generate electricity in Inuvik, wind generation in Cambridge Bay and Iqaluit, and consideration of alternative electric sources in Lutsel K'e and an agreement with that community's band council.

Mr. Chairman, as mentioned during the Standing Committee on Finance review, the corporation's budget timetable is different from that of the government. The power utility's capital budget is scheduled to be reviewed by the corporation's board of directors at their November meeting. Because of this, the plan is still subject to change. A copy of the final budget will be provided to all Members of the Legislative Assembly when it has been approved.

As Members know, the Power Corporation does not receive any funding from the government. Its capital projects and its O and M are independently financed by the corporation through the sale of electricity and heat and a combination of debt and equity financing. As a result, it is essential that the corporation continues to be financially sound and that it earns its full rate of return on a year-to-year basis in order to finance its required capital expenditures without creating an unmanageable debt load.

In 1993-94, Mr. Chairman, the corporation made a profit of $9.36 million, which represents its full rate of return as established by the Public Utilities Board of the Northwest Territories. From this profit, the corporation paid the government a dividend of $3.48 million which was redistributed in the form of a power subsidy to northern consumers.