Thank you, good afternoon. Mr. Chairman, the Standing Committee on Legislation has had the opportunity to review Bill 8, An Act to Amend the Public Utilities Act. The committee held public hearings in Yellowknife on September 1, 1994. The standing committee heard representations from the town of Hay River and the city of Yellowknife. Both municipalities expressed great concern over the proposed amendment to the Public Utilities Act.

The municipalities stated that, in their view, the proposed amendment is not warranted, nor is it necessary. They felt that the amendment amounts to nothing more than an additional tax for utility customers. The standing committee is concerned with the possibility that the consumer will be facing increases to their utility bills; not only once, but twice. It appears that the down loading of the costs to upgrade the Public Utilities Board will be carried by the consumer, levied once by the utility to recoup their costs and in tax-based communities, increases in taxes by the municipalities trying to recover their increased costs.

The standing committee was also concerned that the percentage of the operating costs of the utilities board that is to be recovered was not stated or limited by the legislation. The percentage was to be fixed, by order of the Commissioner. The committee, with the agreement of the Minister, amended Bill 8 to ensure that the percentage fixed each fiscal year was not greater than 50 per cent of the actual operating costs.

On September 9, 1994, the Standing Committee on Legislation passed a motion that Bill 8, An Act to Amend the Public Utilities

Act was ready for consideration in committee of the whole. So concludes the report, Mr. Chairman.