This is page numbers 1225 - 1264 of the Hansard for the 15th 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 chairman.

Committee Motion 21-15(3): Recommendation To Resolve The Sirius Diamond Receivership Issue, Carried
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1258

Some Hon. Members

Agreed.

Committee Motion 21-15(3): Recommendation To Resolve The Sirius Diamond Receivership Issue, Carried
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1258

The Chair

The Chair Calvin Pokiak

Page 2-64, information item, labour relations and compensation services, active positions.

Committee Motion 21-15(3): Recommendation To Resolve The Sirius Diamond Receivership Issue, Carried
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1258

Some Hon. Members

Agreed.

Committee Motion 21-15(3): Recommendation To Resolve The Sirius Diamond Receivership Issue, Carried
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1258

The Chair

The Chair Calvin Pokiak

Page 2-65, information item, labour relation and compensation services, active positions.

Committee Motion 21-15(3): Recommendation To Resolve The Sirius Diamond Receivership Issue, Carried
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1258

Some Hon. Members

Agreed.

Committee Motion 21-15(3): Recommendation To Resolve The Sirius Diamond Receivership Issue, Carried
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1258

The Chair

The Chair Calvin Pokiak

Page 2-67, activity summary, government accounting, operations expenditure summary, $11.636 million.

Committee Motion 21-15(3): Recommendation To Resolve The Sirius Diamond Receivership Issue, Carried
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1258

Some Hon. Members

Agreed.

Committee Motion 21-15(3): Recommendation To Resolve The Sirius Diamond Receivership Issue, Carried
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1258

The Chair

The Chair Calvin Pokiak

Page 2-69, activity summary, government accounting, Mr. Braden.

Committee Motion 21-15(3): Recommendation To Resolve The Sirius Diamond Receivership Issue, Carried
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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Bill Braden

Bill Braden Great Slave

Thank you, Mr. Chairman. There are a few areas that I would like to delve into here under the power subsidy issue. The program, as outlined here, suggests that the government is going to inject about $8.3 million into subsidizing electrical power that will largely go to individual households in the diesel powered communities, Mr. Chairman. A smaller amount goes to a commercial subsidy program. I would note, Mr. Chairman, that that is a projected increase of about $1.2 million from this current year. I'm sorry; it is the same as this current year, Mr. Chairman, but this current year is $1.2 million ahead of last year. So we are going from about $7.2 million last year to a projected $8.3 million this year and it's going to stay the same next year. Mr. Chairman, this begs a little bit of a question. The cost of the Power Subsidy Program to this government has risen about $1 million a year for last four or five years.

Committee Motion 21-15(3): Recommendation To Resolve The Sirius Diamond Receivership Issue, Carried
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1258

Sandy Lee

Sandy Lee Range Lake

Indoor gym.

Committee Motion 21-15(3): Recommendation To Resolve The Sirius Diamond Receivership Issue, Carried
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1258

Bill Braden

Bill Braden Great Slave

Why is it that all of a sudden we're about to put the brakes on this and anticipate no change? It just looks as if there's some kind of an anomaly going on with the trends in the forecasting. That's where I'd like to put this question. Why, in the face of sustained and fairly predictable increases in the cost of this subsidy, is there no increase forecast for next year? Thank you, Mr. Chairman.

Committee Motion 21-15(3): Recommendation To Resolve The Sirius Diamond Receivership Issue, Carried
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair Norman Yakeleya

Thank you, Mr. Braden. Mr. Roland.

Committee Motion 21-15(3): Recommendation To Resolve The Sirius Diamond Receivership Issue, Carried
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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Floyd Roland

Floyd Roland Inuvik Boot Lake

Thank you, Mr. Chairman. Mr. Chairman, the Power Subsidy Program has grown over the last number of years and we've had to change it accordingly or come in for higher costs. There have been a number of factors that were involved in that growth, the change in the way the billing was done or the rate riders and so on. I'll have Mr. Voytilla go into that. Before that, though, the Power Subsidy Program is paid to residential customers as well as some of the small business ones, depending on their amount of profit and the size of it. But the vast majority is for residential customers and it is anybody who pays more than the Yellowknife rate. It doesn't matter what type of power you get; if you're above the Yellowknife rate, you'll be subsidized for the first 700 kilowatt hours. But for the detail in some of the changes that have happened and the way the subsidy was put together and why we have some room and not moving up in the five or six areas, I'll have Mr. Voytilla give that detail.

Committee Motion 21-15(3): Recommendation To Resolve The Sirius Diamond Receivership Issue, Carried
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1258

The Chair

The Chair Calvin Pokiak

Thank you, Mr. Roland. Mr. Voytilla.

Committee Motion 21-15(3): Recommendation To Resolve The Sirius Diamond Receivership Issue, Carried
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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Voytilla

Thank you, Mr. Chairman. We're actually engaged this year in a major review of the Power Support Program. There have been a lot of concerns expressed recently about sustainability of the program. We, of course, share those concerns and want to make sure that we have a good handle on what's happening with the program across the Territories.

As the Minister already pointed out, about $8 million is our estimate for the residential component of the program and the commercial is about $200,000 to $300,000. We have seen very rapid increases in the last few years and a lot of that is because of significant changes in the rate structure that has been approved by the Public Utilities Board. The Power Corporation introduced a program of rate rebalancing a number of years ago, where they attempted to make the burden, I guess, of meeting the revenue requirement more equitable between classes of customers. What we found is that there was a shift away from the government as the main player, if you will, of the bill to a more equitable distribution between government users, industry users and residential users. The more burden that was put on the residential users, the more the Power Subsidy Program went up, because that increased residential rates significantly in communities. In some cases, rates over the seven-year period we looked at rose as much as 100 percent.

So the rate rebalancing had a big impact in the past years on the Power Support Program and that's pretty much done now. They pretty much stabilized and made the rates equitable. In addition for next year, we're not anticipating the similar fuel price increases that we saw this year, so we don't expect that the Power Corporation or NUL will need to make significant adjustments in rates for fuel prices, so that tends to smooth the increase out.

I wouldn't note that we had budgeted $8.3 million this year in anticipation of a new rate rider coming in for the higher diesel cost. In fact, the rate riders that have been applied for are less than we anticipated. So $8.3 million might be

a little bit high for this year and, as a result, we think it will be adequate to fund our requirements for next year.

Committee Motion 21-15(3): Recommendation To Resolve The Sirius Diamond Receivership Issue, Carried
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1259

The Chair

The Chair David Ramsay

Thank you, Mr. Voytilla. Mr. Braden. Mr. Menicoche. Sorry, Mr. Braden, did you have a follow-up?

Committee Motion 21-15(3): Recommendation To Resolve The Sirius Diamond Receivership Issue, Carried
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1259

Bill Braden

Bill Braden Great Slave

Yes. I'll get back.

Committee Motion 21-15(3): Recommendation To Resolve The Sirius Diamond Receivership Issue, Carried
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1259

The Chair

The Chair David Ramsay

Mr. Menicoche.

Committee Motion 21-15(3): Recommendation To Resolve The Sirius Diamond Receivership Issue, Carried
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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Kevin A. Menicoche

Kevin A. Menicoche Nahendeh

Thank you very much, Mr. Chairman. This has been one of the topics that I'm passionate about, is our Territorial Power Subsidy Program and where we're going with the territorial power subsidy. I'm just wondering, has the Minister looked at the terms of reference of how they wish to look at this subject. I'm of the mind that everyone has to pay the same, just like every other jurisdiction in Canada. I might be going a bit outside the topic here, but I wonder if there's leeway at all in the deliberation of the territorial power support and, indeed, of the Power Corporation of looking at their rate structure at all and make some suggestions. I'm still thinking that even if we levelize the diesel communities to having one rate, that might be a place that we want to look at. Just in terms of the terms of reference, Mr. Chairman, if the Minister can answer that for me.

Committee Motion 21-15(3): Recommendation To Resolve The Sirius Diamond Receivership Issue, Carried
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1259

The Chair

The Chair David Ramsay

Thank you, Mr. Menicoche. Mr. Roland.

Committee Motion 21-15(3): Recommendation To Resolve The Sirius Diamond Receivership Issue, Carried
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1259

Floyd Roland

Floyd Roland Inuvik Boot Lake

Thank you, Mr. Chairman. Mr. Chairman, the work that's undergoing within the review of the Power Subsidy Program is one around the existing rate structure, what's driving the costs. So right now it is not identified to look at the rate structure itself as that is not within our purview as the Financial Management Board Secretariat. The power rate structure itself falls under the Public Utilities Board. So our work is around the existing program, what's driving the cost, what levels of support there should be, should there be changes, things of that nature. So it will be around the existing program as it's structured to date. Thank you.

Committee Motion 21-15(3): Recommendation To Resolve The Sirius Diamond Receivership Issue, Carried
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1259

The Chair

The Chair David Ramsay

Thank you, Mr. Roland. Mr. Menicoche.

Committee Motion 21-15(3): Recommendation To Resolve The Sirius Diamond Receivership Issue, Carried
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

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Kevin A. Menicoche

Kevin A. Menicoche Nahendeh

Thank you very much, Mr. Chairman. One of the things I'm starting to hear back in my riding is that as I talk to the elders, they're saying, okay, listen, you guys are helping me subsidize my fuel and I still need assistance with my cost of living. Can the government subsidize the power for elders, those over the age of 65 and on pension? Is that something this review could look at, Mr. Chairman?

Committee Motion 21-15(3): Recommendation To Resolve The Sirius Diamond Receivership Issue, Carried
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1259

The Chair

The Chair David Ramsay

Thank you, Mr. Menicoche. Mr. Roland.

Committee Motion 21-15(3): Recommendation To Resolve The Sirius Diamond Receivership Issue, Carried
Item 20: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1259

Floyd Roland

Floyd Roland Inuvik Boot Lake

Thank you, Mr. Chairman. Mr. Chairman, as the program is laid out now, anybody who has a household that is paying higher than the Yellowknife base rate, as we call it, would qualify for a subsidy. So elders, if they have their own home and their rate is higher than the Yellowknife rate would qualify for subsidy. If there are other problems around income and not being able to afford that, then we have some other programs within government that could be looked into. But specifically in this area as it would apply today, elders would be a part of the package when you look at the existing structures and the way this Power Subsidy Program works. Thank you.