I am pleased to introduce Bill 4, Northwest Territories Hydro Corporation Act. This bill is necessary to facilitate the participation of the Northwest Territories Power Corporation in a joint venture with the

Akaitcho Energy Corporation and the Metis Energy Company to expand the Taltson Twin Gorges hydro facility to provide power to the diamond mines.

The passage of this act will not in any way commit the Government of the Northwest Territories or the NTPC to proceed with the Taltson hydro expansion project. The act only makes participation in the project possible. Many steps are still required before a final decision to proceed with the project can be made.

NWT Hydro Corporation is being created as a Crown corporation under NWT legislation. It will be a public agency subject to the Financial Administration Act and direction from the Executive Council. The Northwest Territories Power Corporation will remain a public agency.

The legislation would create an NWT Hydro Corporation that would be able to participate in the joint venture for the Taltson project. A separate Crown corporation is being used to protect the assets and regulated operations of NTPC from any risks that may be associated with the Taltson project.

The legislation to create NT Hydro has been kept as close to the Northwest Territories Power Corporation Act provisions as possible. Some highlights of the bill are:

• • NT Hydro is an NWT Crown corporation accountable to a Minister and to the Legislative Assembly;
• • Cabinet and the Legislative Assembly have the same control over NT Hydro activities as they do those of NTPC;
• • NT Hydro is clearly authorized to enter into joint ventures and partnerships;
• • NT Hydro will hold the common shares of NTPC while the GNWT will hold preferred shares. Cabinet can still demand dividends from both companies and NTPC's dividend will continue to be available for the Territorial Power Support Program;
• • NT Hydro cannot pledge NTPC assets nor incur any debt that may put NTPC at risk;
• • Any significant NT Hydro borrowing requires FMB approval; and
• • The sale of power from the Taltson project to the diamond mines is exempted from Public Utilities Board regulation.

I feel that this legislation proposes the minimum changes necessary to enable the Taltson hydro expansion project to proceed.

I would be pleased to answer any questions that Members may have.