Thank you, Mr. Chairman. In recent years, there has been a pilot project whereby some communities have windmills powered by wind. I wonder if that was a project from the government or the corporation, if it in fact has been feasible. What was the outcome of this project? Thank you.

Mr. Chairman, the wind generation farm in Cambridge Bay was a venture between the Power Corporation and the federal government. Thank you.

Thank you, Mr. Chairman. Now we have established that there was, in fact, a pilot project going on. Was this feasible? What was the outcome? Thank you.

Mr. Chairman, there was a great deal of difficulty with trying to keep that operation alive. I would suggest that the representative from the Power Corporation, Mr. Courneya, probably would be able to answer that more specifically than I could. Thank you.

The project never really got out of the pilot stage. Power was generated and purchased by the Power Corporation, but there was a series of maintenance breakdowns that could not be rectified. Eventually, the windmills were dismantled.

Thank you, Mr. Chairman. Regarding the direction that the Power Corporation is going in and the plans that are in place with regard to hydroelectric power, have you actually looked at the costs initiated with developing hydro power? If you are going to build a diesel operated station here in Yellowknife and if you were to build something in Snare Lake or somewhere in that area, the capital cost of hydro is much higher than it would cost to develop diesel generated power. Am I correct?

Mr. Chairman, the initial capital cost of putting in a hydro dam is more costly than providing a capital diesel plant. However, the cost assumptions on generation from hydro has always been known over a longer period of time to be more cost-efficient because once the facility is put in it doesn't lose its value. It's a very long-term capital investment. I believe that in all these new initiatives, or any initiative, the cost-benefit is worked out at the beginning. Also, because this is a fully regulated Power Corporation, it would have to go through the Public Utilities Board, as well, for them to assess the figures that the corporation has put forward in making these contractual deals in the long term to utilize hydro generation. So it does look like it's a big expense, but all the calculations are done before you would move ahead on any specific project. Thank you.

I appreciate that response. When you do make an investment such as that, the power consumption absorbs the cost of such development. I would think that the absorption of such a cost would probably be that you look at high power rates for maybe the 20 or 30 years. Is that the way you get a return for your investment?

Also, Mr. Chairman, whether the return on that investment on the power rate is right across the north, or is it designed that if Yellowknife is going to be getting the hydro power then they are going to be the ones who are going to absorb that cost?

Mr. Chairman, the premise that the Power Corporation operates under is a reasonable cost to the customer. In the issue of the one project we have before us, the Dogrib power project, the corporation has made a contractual arrangement with the Dogrib Power Corporation where they will be securing the capital to actually construct the project, and we would just be buying power over a long period of time. The Power Corporation, under regulation, would only be able to have such a deal if it's made reasonable power rates available to the customer. We can't sign any kind of deal. There are certain questions that would have to be answered. If you wish, the vice-president can deal with that in a little more detail.

Both our agreements with the Dogrib Power Corporation contain clauses that require the ultimate approval by the Public Utilities Board. During this process they have and will review the cost-benefit analysis for the project, as well as the impact on rates.

Mr. Chairman, at no time did I refer to the Dogrib Power Corporation. It's not my position to question this. I suppose it's the Member for Rae-Lac La Martre who would be questioning that if he chose to do so. I'm making reference to the fact that if you are going to be developing hydro power, then you have to look at it from a long period of return. I'm just suggesting regardless of whether you buy the power from the Dogrib Power Corporation or not, the fact still remains that the consumers are the ones who are going to absorb the cost over a long period of time. If that's the case, then what are we looking at for that kind of return?

I just want to say that I was just using the Dogrib power project as an example. I realize that the Member's question was more global in its attempt, but because it's easier to have an example, I referred to it. I realize his question was more global.

In any project that is being developed which we buy power from, or if it was a project of NWTPC, during the period of time for amortization we would have to make sure that the rates to the customers were reasonable and were within what the regulatory regime would say was a fair and reasonable cost to the consumer and a reasonable rate of return to the corporation. In the case of this particular issue, it's a 65 year agreement. Thank you.