This is page numbers 815 - 849 of the Hansard for the 14th Assembly, 3rd Session. The original version can be accessed on the Legislative Assembly's website or by contacting the Legislative Assembly Library. The word of the day was power.

Topics

Review Of Power Generation, Distribution And Regulation
Item 3: Members' Statements

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Brendan Bell

Brendan Bell Yellowknife South

Thank you, Mr. Speaker. I want to talk today about the review of power generation and distribution in the Northwest Territories. There is a bit of history. Before World War II, heat and light for a typical NWT winter night was supplied by coal oil lamps and a wood stove. Then came the mines, and with them, hydroelectric power. Now, Mr. Speaker, we enter a new era with possible fundamental changes and serious ramifications.

I think that it is important that we make sure we take the necessary time to ensure that we are going in the right direction. We know we have embarked on a review of power generation distribution. Our government has been careful to ensure that the focus is seen to be broader than just the Northwest Territories Power Corporation. We all know however, that the Northwest Territories Power Corporation is the key piece of this review.

I am hoping today when I ask the Minister, he will be able to tell me exactly what range of options are on the table. What has the consultant been tasked with? We want to know about his mandate. Everything, from possibly doing nothing, to privatize the Power Corporation, and everything in between, Mr. Speaker. There have been a lot of words spoken about the various different options. I have heard people say that a private power corporation cannot possibly operate as efficiently as government, given that a Crown corporation pays no income tax. Is this the case, Mr. Speaker? If it is, I doubt we would ever privatize anything.

What about subsidizing the high cost of service areas? Currently, the dividend paid out by the Power Corporation does not cover the entire subsidization. How much additional subsidy is paid out of our general revenues? We have a lot of questions, Mr. Speaker. Clearly, we need this review, but I would argue that it does not diminish the need for an overall energy strategy. Thank you, Mr. Speaker.

-- Applause

Review Of Power Generation, Distribution And Regulation
Item 3: Members' Statements

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The Speaker

The Speaker Tony Whitford

Thank you, Mr. Bell. Item 3, Members' statements. The honourable Member for Range Lake, Ms. Lee.

Review Of Power Generation, Distribution And Regulation
Item 3: Members' Statements

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Sandy Lee

Sandy Lee Range Lake

Thank you, Mr. Speaker. I would like to add my contribution to the issue of energy policy in general. I would like to say for the record, I believe it is a good thing that we are undertaking this review. Given the developments in Hay River and Fort Simpson during the summer, it is time that we focused our attention to this issue. Mr. Speaker, I must say that I was not happy to see what was happening in Hay River and I think this sort of review should have happened before then.

Mr. Speaker, I wish to state clearly for the record that I do not support a wholesale privatization of the Northwest Territories Power Corporation if it is on the board as an option, especially if this has anything to do with lessening the pressure on the debt wall the government is facing, or as a means of raising fast cash.

Mr. Speaker, after all, we are talking about generation, distribution and regulation of the energy and power sector. It is even confusing to talk about energy and power and natural gas. I think the definition of energy and power is changing as we speak.

Mr. Speaker, I think we are also aware of the tremendous changes that the Power Corporation had to undergo within the last year as a result of having lost their service and their business in Nunavut. That is another issue that should be put on the "to do" list for this review team.

Mr. Speaker, I have not had a chance to talk to Mr. Robertson and I look forward to the opportunity to do so. I look forward to getting his report, in order to have a more focused discussion. I have researched a little bit on this issue and met with some of the people. I think there are so many issues that we need to deal with, that I cannot even talk about at the moment.

All I know is that the distribution of energy is an essential service in the North. It is not the most economical place in the world to produce that and distribute that, but it is like a railroad of long ago, where we have to be connected to the system. Not all parts are going to be able to afford everything and some parts have to be subsidized. It is an essential state service that we must have a plan to distribute, and we must find innovative ways to use the Power Corporation at its best, seeing as we have invested so much money into that. I applaud the government for reviewing it and I look forward to seeing the result. Thank you, Mr. Speaker.

-- Applause

Review Of Power Generation, Distribution And Regulation
Item 3: Members' Statements

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The Speaker

The Speaker Tony Whitford

Merci, Ms. Lee. Déclaration des députés. Item 3, Members' statements. The honourable Member for North Slave, Mr. Lafferty.

Dogrib Power Corporation
Item 3: Members' Statements

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Leon Lafferty North Slave

Thank you, Mr. Speaker. Mr. Speaker, today I would like to share the history of an organization within my region which is benefiting the North in two ways: by providing sustainable hydroelectric power and by contributing to the reduction of greenhouse gases in the Northwest Territories. In the early 1990's, the Dogrib people became involved with the generation of electrical power on their traditional lands. They invested heavily in infrastructure, and through a joint partnership with the Northwest Territories Power Corporation, they developed the Snare Lake hydroelectric generating plant, which is just north of Rae-Edzo.

One of the main goals of the partnership was to build a power plant that could meet the electricity demand of customers in the Dogrib region. It was also recognized that this partnership would contribute to the reduction of greenhouse gases in the Northwest Territories. In 1996, the Dogrib Power Corporation signed a 65-year lease with the Northwest Territories Power Corporation. This provided the Dogrib Corporation with a guaranteed financial return on its investment. Next year the plant will celebrate five years of operation. It continues to generate a large volume of sustainable hydroelectricity and by next year, the equivalent of more than 100,000 tons of greenhouse gas emissions will have been avoided as a result of this hydroelectricity being generated.

The Dogrib Power Corporation is an excellent example of how government and industry can work together with aboriginal people so that everybody wins. Thank you, Mr. Speaker.

Dogrib Power Corporation
Item 3: Members' Statements

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The Speaker

The Speaker Tony Whitford

Thank you, Mr. Lafferty. Item 3, Members' statements. The honourable Member for Tu Nedhe, Mr. Nitah.

Concerns Of South Slave Residents Regarding Power Generation
Item 3: Members' Statements

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Steven Nitah Tu Nedhe

Mahsi cho, Mr. Speaker. Mr. Speaker, my people on the south side of the lake have been involved in the power generating industry for many years now. Unfortunately, Mr. Speaker, it has been on the negative side of the business. The impact has been negative. It has been devastating to other areas. For that reason, the people on the south side of the lake never agreed with the hydroelectric generating power.

However, as our honourable Premier eloquently expresses himself right around the country, when the pipeline was first introduced he was not for it. In 20 years, there has been enough experience gained that he feels the people of the Northwest Territories are ready for it. Similar to that, in my part of the country, my people are ready to have ownership of the Power Corporation. If not the Power Corporation, the Taltson Dam at the very least.

There is significant interest in the industry. There are people from the north and south interested. I know there is a review on. The decision to sell or not to sell has not been made, but there are concerns that people on the south side have. They are concerned that southern interests or other northern interests will take precedence over their own interest. People are worried that the people working for the Power Corporation would ultimately end up with the short end of the stick. The people are worried that the compensation issue is not resolved and they hope, as I hope, that the Minister would keep these concerns and interests in mind when making any decision. With that, I thank you, Mr. Speaker.

-- Applause

Concerns Of South Slave Residents Regarding Power Generation
Item 3: Members' Statements

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The Speaker

The Speaker Tony Whitford

Mahsi, Mr. Nitah. Item 3, Members' statements. The honourable Member for Mackenzie Delta, Mr. Krutko.

Impacts Of Proposed Power Corporation Privatization
Item 3: Members' Statements

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David Krutko

David Krutko Mackenzie Delta

Thank you, Mr. Speaker. Mr. Speaker, a major concern I have with the potential sale of the Northwest Territories Power Corporation and its effect on the present joint ventures this government has with aboriginal governments is in regard to the Power Corporation and their involvement with finding unique ways to deal with the problems we have in our communities, with the high cost of energy and also a waste of energy with regard to heat recovery.

Mr. Speaker, in Fort McPherson, Aadrii Ltd. distributes waste heat generated by the Power Corporation from the generators they have and the heat is being used to conserve energy. Also in Inuvik, the Inuvialuit Development Corporation are now selling natural gas to the Power Corporation to supply a cheap form of energy, but also assisting communities to bring down the cost of energy in that community.

Mr. Speaker, with this sale, I feel the corporation was on the right track when it decided to find new ways, new initiatives and new ideas to work with communities, aboriginal government and aboriginal corporations to find new ways to deal with the high cost of energy in our communities and also to look at ways of sharing resources and revenues that come from these joint ventures. I, for one, feel that this will be sending the wrong message to communities and aboriginal governments. Regardless of what size the community or project is, will you have the ability or opportunity to take on economic opportunities in your communities by selling to one large company or even several small companies?

I think opportunities are limited in our communities and limited in our regions. We have to find unique ways of trying to take advantage of those opportunities. I was hoping the corporation would continue striving to work with communities and aboriginal governments to find these unique ventures and form joint ventures to deal with the high cost of energy in our communities. Thank you, Mr. Speaker.

-- Applause

Impacts Of Proposed Power Corporation Privatization
Item 3: Members' Statements

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The Speaker

The Speaker Tony Whitford

Thank you, Mr. Krutko. Item 3, Members' statements. Item 4, returns to oral questions. The honourable Member for Nunakput, Mr. Steen.

Return To Question 228-14(3): Water Treatment System Maintenance
Item 4: Returns To Oral Questions
Item 4: Returns To Oral Questions

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Vince Steen

Vince Steen Nunakput

Thank you, Mr. Speaker. Mr. Speaker, I have a Return to Oral Question asked by Mr. Krutko on November 7, 2000, regarding the service contract in place between the Hamlet of Fort McPherson and Public Works and Services.

In the incident mentioned by the Member, dropping water levels in the lake caused the floating pump house to tilt, thereby straining and damaging the electrical service and one of two pumps. Two replacement pumps also failed before the electrical fault was successfully traced and repaired. During this period, water circulation was maintained by one pump, which is adequate during summer conditions but not during winter when the water in the lines is colder. Eventually the intake line froze. By using stored water, however, service to residents was interrupted for only a few hours.

Public Works and Services staff and contractors took their responsibilities seriously, responding to the problem immediately, and treating it as their highest priority. They worked outdoors under difficult winter conditions for four days to make the necessary repairs. The repairs required that they deal with high voltage electrical lines, a building that was leaning on its side and the frustration of an old system requiring obsolete parts. Their success in restoring service under difficult conditions demonstrates the level of commitment of the department's staff and contractors. Thank you, Mr. Speaker.

Return To Question 228-14(3): Water Treatment System Maintenance
Item 4: Returns To Oral Questions
Item 4: Returns To Oral Questions

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The Speaker

The Speaker Tony Whitford

Thank you, Mr. Steen. Item 4, returns to oral questions. Item 5, recognition of visitors in the gallery. The honourable Member for Weledeh, Mr. Handley.

Item 5: Recognition Of Visitors In The Gallery
Item 5: Recognition Of Visitors In The Gallery

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Joe Handley

Joe Handley Weledeh

Mr. Speaker, I wish to recognize two visitors, Mr. Bill Burn and Wayne Sartor, vice-president of Northern Pipeline Development for Embridge Pipeline. They operate our pipeline from Norman Wells south and they do more business with us. Thank you.

-- Applause

Item 5: Recognition Of Visitors In The Gallery
Item 5: Recognition Of Visitors In The Gallery

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The Speaker

The Speaker Tony Whitford

Thank you. Item 5, recognition of visitors in the gallery. The honourable Member for Hay River South, Mrs. Groenewegen.

Item 5: Recognition Of Visitors In The Gallery
Item 5: Recognition Of Visitors In The Gallery

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Jane Groenewegen

Jane Groenewegen Hay River South

Thank you, Mr. Speaker. Mr. Speaker, I would like to recognize Brian Willows, who is with the Northwest Territories Power Corporation, in the gallery today. Thank you.

-- Applause

Item 5: Recognition Of Visitors In The Gallery
Item 5: Recognition Of Visitors In The Gallery

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The Speaker

The Speaker Tony Whitford

Thank you, Mrs. Groenewegen. Item 5, recognition of visitors in the gallery. The honourable Member for Mackenzie Delta, Mr. Krutko.

Item 5: Recognition Of Visitors In The Gallery
Item 5: Recognition Of Visitors In The Gallery

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David Krutko

David Krutko Mackenzie Delta

Thank you, Mr. Speaker. Mr. Speaker, I would like to recognize a former employee of the Legislature, Ms. Candy Hardy, and Ms. Francis from Fort McPherson, who is also in the gallery. Thank you.

-- Applause

Item 5: Recognition Of Visitors In The Gallery
Item 5: Recognition Of Visitors In The Gallery

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The Speaker

The Speaker Tony Whitford

Item 5, recognition of visitors in the gallery. I would like to say welcome to visitors and thank you for coming to see your Legislative Assembly. Item 6, oral questions. The honourable Member for Great Slave, Mr. Braden.

Question 242-14(3): GNWT Energy Policy
Item 6: Oral Questions

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Bill Braden

Bill Braden Great Slave

Thank you, Mr. Speaker. My question this afternoon is in relation to the issue of energy policy and it is directed to the Minister of Finance. Given that the government of the Northwest Territories and communities, boards and agencies and public institutions are charged with financing and managing a broad range of energy related issues such as water and sewer, heating fuel and electrical utilities, and that we have an enormous potential in the Northwest Territories to harness major hydro and gas opportunities, what is the government's approach to using energy potential as an instrument of public and economic benefit? Thank you, Mr. Speaker.

Question 242-14(3): GNWT Energy Policy
Item 6: Oral Questions

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The Speaker

The Speaker Tony Whitford

Thank you. The honourable Minister responsible for Finance, Mr. Handley.

Return To Question 242-14(3): GNWT Energy Policy
Question 242-14(3): GNWT Energy Policy
Item 6: Oral Questions

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Joe Handley

Joe Handley Weledeh

Thank you, Mr. Speaker. The government's approach is one of being very open minded to what the potential is for alternative uses of energy alternatives to diesel fired generators. We have been a strong supporter of the Arctic Energy Alliance and that is an alliance made up of government and non-government bodies. They have been doing a lot of work for us in this area. We are open, we are doing a number of initiatives within the government itself as well. Of course, we are also looking at the whole review of power generation that has been referred to many times today by the Members. Thank you.

Return To Question 242-14(3): GNWT Energy Policy
Question 242-14(3): GNWT Energy Policy
Item 6: Oral Questions

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The Speaker

The Speaker Tony Whitford

Thank you, Minister Handley. Supplementary, Mr. Braden.

Supplementary To Question 242-14(3): GNWT Energy Policy
Question 242-14(3): GNWT Energy Policy
Item 6: Oral Questions

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Bill Braden

Bill Braden Great Slave

Thank you, Mr. Speaker. I would still like to pursue that sort of very fundamental, I think philosophical, approach that a government always has the option to apply. That is, if we have the ability through aggressive development and marketing of our energy potential that we could indeed turn the corner on some things. My colleague from Tu Nedhe illustrated potential, for instance, in the Taltson region to export them from the North Slave region as well into the diamond fields.

Does the government feel there is strong potential there that it should be aggressively pursuing?

Supplementary To Question 242-14(3): GNWT Energy Policy
Question 242-14(3): GNWT Energy Policy
Item 6: Oral Questions

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The Speaker

The Speaker Tony Whitford

Thank you, Mr. Braden. The honourable Minister responsible for the Department of Finance, Mr. Handley.

Further Return To Question 242-14(3): GNWT Energy Policy
Question 242-14(3): GNWT Energy Policy
Item 6: Oral Questions

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Joe Handley

Joe Handley Weledeh

Thank you, Mr. Speaker. Yes, definitely. The government agrees that there is strong potential in the Northwest Territories in several locations for more hydro energy and the two areas the Member mentions, the Taltson and the Snare River system are, of course, two main ones. Thank you.