Thank you, Mr. Chairman. Mineral exploration does not require power from a corporation. However, if that exploration is fruitful, the resulting mining operations become large consumers of power. The committee recognizes the potential for future sales based on the success of the current mineral exploration. It is crucial that the corporation develop specific plans for providing services to these new users.
Committee Members continue to express a desire for the corporation to put more effort into exploring alternative energy sources. As we said in a previous report:
"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 play an important role serving the people of the north in cooperation with the Government of the Northwest Territories."
Finally, committee Members note the corporation's continuing phase II general rate application presently before the Public Utilities Board (PUB). The committee appreciates that the goal of this application -- to make power rates more reflective of the true cost of providing that power -- means there will be significant changes to the corporation's rate structure, and to the power bills of many northerners There will be significant effects on the government. Not only will the government's own power bills be affected, but there could be large changes to the amounts paid to domestic and commercial consumers under the power subsidy program. Committee Members feel that the government should be involved in the PUB hearings in such a way as to ensure that their interests are well represented.
As for the application itself, the corporation's initial proposal -- which included two large rate zones covering those communities whose power is provided by diesel generation -- provoked quite an outcry from many customers. Committee Members are not satisfied with the way the corporation handled this application. Similarly, committee Members expressed similar concerns at the corporation's 1994 application for a low water rider surcharge. The committee notes that, with respect to that application, the Public Utilities Board: "indicated its concern with respect to the lack of prudence shown by NWTPC in not properly planning for low-water years." These incidents demonstrate to the committee that the corporation needs to be more prudent in its planning, and more sensitive to the impact of dramatic changes in power rates on its customers.
That's the report of the Standing Committee on Finance, Mr. Chairman. Thank you.