Agreed.

---Agreed

Expenditures On Behalf Of Members

Agreed.

---Agreed

Office Of The Chief Electoral Officer

Agreed.

---Agreed

Commissioner Of Official Languages

Agreed.

---Agreed

Agreed.

---Agreed

Agreed.

---Agreed

Thank you, Mr. Chairman. Mr. Chairman, while the Northwest Territories Power Corporation has been established as a crown corporation, every effort has been made to allow it to operate at arm's-length from usual government process as an independent, regulated utility. Today, the corporation is fully regulated and operates in competition with northern subsidiaries of Edmonton-based Canadian utilities.

Mr. Chairman, the 1994-95 O and M budget was approved by the corporation's board of directors on March 9, 1994. On March 14, 1994, Public Utilities Board (PUB) decision 2-94 was issued. This decision will result in revisions to the budget. The decision, including the 14 directives, has significant O and M and revenue impacts. For example, the board rejected the corporation's application for a 2 per cent general rate increase in the 1994-95 budget.

Mr. Chairman, on the positive side, as a result of PUB review and revision to the corporation's Phase I general rate application, it appears that the corporation, for the second consecutive year, will be at or near its approved rate of return. The effects of several Government of the Northwest Territories initiatives are beginning to impact on the corporation's projected revenue. This budget reflects a budget reduction of $1 million in revenues due to the user- pay initiative.

As government domestic accounts are transferred to the employee's name, a reduced non-government domestic rate applies. However, as a consequence of this new responsibility for bill payment, customers are exercising demand side management (DSM) initiatives and are reducing consumption. The lower rate and reduced consumption results in a reduction in revenue for the corporation. As well, since the corporation is faced with added cost to the power subsidy program, the impact on the corporation is threefold. Depending on rate of implementation, this reduction in revenue could reach $2 million in 1995.

Mr. Chairman, the corporation is in support of the user-pay initiative, and it is important to note that this and other proposals, while reducing GNWT expenses, simply shift the cost burden to the corporation and, by extension, to the electrical ratepayer.

Over the next two years, the change of up to 2,000 electrical hot water heaters to oil-fire heaters is expected to reduce revenue by approximately $2.9 million. Again, the corporation supports this initiative and, through consultation and phased elimination, the impacts on corporation revenues can be reduced or spread over a period of time.

Mr. Chairman, since last appearing before this committee, the corporation has continued to deal with BHP and Kennecott for the supply of power to their properties in the north Slave. The corporation's agreement with the Dogrib Power Corporation continues. A tender closing for project construction took place in Yellowknife on March 14, 1994.

With respect to this government's privatization initiative, it is my expectation that an information item in support of the March 1993 Abbott proposal will be tabled in this Assembly prior to the April recess.

Mr. Chairman, those are the opening remarks that I have at this time.

Thank you, Mr. Chairman. I'm pleased to present the report of the Standing Committee on Finance on the NWT Power Corporation. Since the Government of the Northwest Territories took over the Power Corporation, the corporation has improved greatly in every way, including service, responsiveness, and profitability. The most notable recent development was the signing of an agreement with the Dogrib Development Corporation to build new hydroelectric facilities. Such cooperation with local organizations and people will do nothing but good for the north.

The committee would like to see results of the customer satisfaction survey that the corporation was to have undertaken. Given past complaints about the corporations' performance, we feel that the results of such a study would be of great benefit to the corporation's service record.

Committee Members also expressed a desire for the corporation to put more effort into exploring alternative energy sources. Any initiative which might bring down costs to consumers should be carefully investigated by the corporation. The Power Corporation is an important economic and social instrument that should continue to plan an important role serving the people of the north in cooperation with the Government of the Northwest Territories.

That concludes the report of the Standing Committee on Finance.

Yes, Mr. Chairman, I would.

Mr. Chairman, appearing on behalf of the Northwest Territories Power Corporation is Mr. Leon Courneya, vice president of finance and chief financial officer. Thank you.

Thank you, Mr. Chairman. I have a few comments in the course of this department's budget. I have some questions I would be interested in having a response to from the Minister. It is too bad Mr. Robertson is not here. I would like to give him credit for how far he has brought the corporation from the day, a number of years ago, we took it over from the federal government. We have come a long way from NCPC. Those of us who remember those days will remember the litany of complaints and problems that we all had with the federal crown corporation. We are not all the way there yet. There are still problems, but we have to give credit where credit is due. Mr. Robertson, the board of directors, and the staff of the Power Corporation deserve credit for the tremendous progress we have made over the last number of years.

The future looks very exciting for the Power Corporation. I think that the agreement with the Dogrib Nation was a major step forward for all of us, even though the project that we are trying to get financing for right now, their Cascades project, is a relatively small project. In the future, we can see the possibility of Yellowknife being almost totally supplied by hydroelectric power, and we also see some tremendous opportunities in the many areas north of Yellowknife. I think that people in Yellowknife and across the territories should recognize that, if we gain large new customers on our hydro system, it is going to benefit everybody, bring power rates down, stabilize power rates and make us more competitive in many ways. For people in Yellowknife, it is very much so. One of the big benefits, if ever this mining gets off the ground, will be that -- a direct benefit for the people of Yellowknife with their power rates in the long term. I see much potential. There has been talk over the years of having a power grid system here in the territories, the possibility of perhaps exporting power to Alberta. I would like to ask questions of that nature to the Minister when we get into details.

I have one concern. It is not really a big concern. I am generally fairly satisfied with the way the Power Corporation is operating at this point in time. I will ask this question when we get into details. As we get into a much more complex area, when we are dealing with big diamond mines and huge potential hydro-electric projects, I wonder if the management team of the Power Corporation is going to have to be augmented somehow. The team has done a good job up until now. I think it will have to be added to as we get into bigger and more complicated plays that are going to take a great deal of specific expertise, which we might or might not have now, but I will be asking the Minister some questions about that.

We have come a long way. I think it has been a generally good experience. I think that the fact that we bought the Power Corporation, the price we paid for the Power Corporation, all turned out to be a fairly good deal for the Government of the Northwest Territories. The future looks very bright. The Power Corporation has been a very effective medium for this government in order to undertake public policy. It has been a very effective medium to bring together regions of the Northwest Territories. It has been a very strong tool in our GNWT arsenal of positive tools that we have to serve the people of the Northwest Territories. With that, I will conclude my remarks, Mr. Chairman.

Mr. Chairman, I believe that the Member said that he would be following up with some specific questions, so I will wait until that point in time. Thank you.