Thank you. Minister responsible for the Power Corporation, Madam Premier.

Thank you, Madam Speaker. As the Member is aware, we have been working over the last two years with the community of Cape Dorset on the issue of providing secure power for the community. The Member is also aware that the community wants to have the power plant moved. In the assessment of the power plant, the indications from all assessments are that the moving of the power plant is not necessary at this time and that renovations would be more cost-effective.

We have another engine and we are trying to reach agreement with the community on a process to install it for this winter. It would appear that if we don't do that, then the security of power will be limited. The present system does not meet the requirements of this winter. The Power Corporation did meet with the hamlet council on September 9th in an attempt to finally resolve this situation. The Power Corporation requested a development permit to connect the modular unit. The community did not want us to connect this because this would prejudice the possibility of having a new plant in another location.

At the September 9th meeting and at previous meetings, the hamlet was advised that a new plant would cost $5 million and the modular unit, which would take care of the power needs of the community, would be approximately $1 million. At this point in time, keeping in mind the policies and procedure for permitting the development of new plants, the Power Corporation felt they could not justify a new plant construction. Since the September 9th meeting, the Power Corporation advised the hamlet that if the modular unit could not be connected, then the 270 kilowatt unit in the existing plant would be removed and a 720 kilowatt engine, contained in the module, would be installed in the plant. Installing the 720 kilowatt unit does not require a development permit.

The community felt they did not want to allow a development permit, in hopes that would force a new plant to be built. However, the Power Corporation has indicated that they would, in any eventuality, move the 720 kilowatt unit into the old plant. The Power Corporation is presently still awaiting a decision from the hamlet council. We had hoped that they would respond by the end of September, but they haven't to this date. The Power Corporation's preferred course of action is to upgrade the existing plant and to factor community concerns into the design, such as noise. This proposal will meet the load requirements, the current regulatory standards, and provide the least power costs.

As I have said, the community is opposed to this approach and the corporation is concerned that, in accepting the community's request, the Public Utilities Board will reject the cost premium, in which case the corporation will bear the costs. The corporation is currently considering a demand site management initiative that may delay the need for an upgrade based on capacity criteria. Also, the corporation is exploring the potential for residual waste heat use as an incentive to remain on the site.

We are still in dispute and uncertain whether the community will consent and give approval for us to attach the unit which is required for the stabilization of power needs for this winter. However, the units are there and can be quickly installed. Thank you.