With regard to the motion, I would like to update the Members on what the Government of the Northwest Territories will be doing. The Government of the Northwest Territories intends to undertake a review of the electricity rates, regulation and subsidy programs. Cabinet recently authorized the establishment of the ministerial energy coordinating committee to ensure that the energy priorities identified by the 16th Legislative Assembly are coordinated across government. This committee is comprised of the Ministers of Industry, Tourism and Investment; Environment and Natural Resources; and the Minister Responsible for the Northwest Territories Power Corporation.

Undertaking a review of electricity rates, regulation and subsidy programs will be a high priority of the ministerial energy coordinating committee. While the Government of the Northwest Territories has made many investments in such areas as energy conservation and efficiency and the application of alternative energy, it is important that administrative and regulatory systems are reviewed as well. For example, businesses in our remote communities have a difficult time competing and providing goods and services at affordable prices due to the high cost of power.

The proposed electricity review will examine this area closely to determine options for reducing the high cost of doing business in N.W.T. communities. With a complex system, including separate rate zones for each community, there are likely opportunities for change. This is consistent with recent Government of Northwest Territories efforts to refocus operations, ensuring that programs and services reflect the priorities of the 16th Legislative

Assembly. The ministerial energy coordinating committee intends to consult closely with Members of the Legislative Assembly on this important and complex initiative, and we look forward to your active involvement and input.

An electricity review working committee has been established to undertake the review of the electricity regulations, rates, power subsidy programs in the N.W.T. The review process and the terms of reference for the working committee will be reviewed by the Deputy Minister of the energy coordinating committee and will be forwarded to the ministerial energy coordinating committee for approval. The committee membership is composed of Industry, Tourism and Investment; Financial Management Board Secretariat; and Department of Finance, with the head of the NWT Power Corporation acting as a technical advisor to the committee.

The current, draft objectives of the committee are to:

1) Examine the N.W.T. Public Utilities Board Act

and the associated regulatory system for establishing electricity rates and develop options aimed at reducing complexity and administrative costs;

2) Examine other jurisdictions to consider

governance models that will provide fair rates and interests processes and oversight tools; maintain an appropriate level of procedural fairness, impartiality, transparency and accountability without creating unnecessary complexity;

3) Examine the current approach of community-

based electricity rates and develop alternative approaches to rate setting aimed at reducing overall system complexity and costs;

4) Examine the Government of Northwest

Territories commercial and Territorial power subsidy programs, analyze their effectiveness in ensuring that N.W.T. residents and businesses have access to affordable power, and develop options for change as required;

5) Examine the various public policy issues that

will arise during this review, including issues related to the role of the Government of Northwest Territories in the provision and regulation of electricity in the Northwest Territories, and provide a critical analysis and future policy options that consider the approach in other jurisdictions as well as the unique nature of N.W.T. markets.

The current proposed schedule includes a technical review and analysis, in consultation with internal and key stakeholders, until June 2008. A public discussion paper will be prepared for cabinet’s consideration in September 2008, with public consultations occurring throughout the fall of 2008. This will lead to a detailed report for cabinet’s consideration in 2009.

With this information, this will help make an informed vote on the motion.