Mr. Speaker, I’d like to thank
Mr. Krutko for bringing up Motion 5. I know this has been a concern of the diesel communities for some time now. The rates for power in their communities are structured on a community-by-community basis. I also empathize with the cumbersome process when there is a general re-application and the extreme amount of study and work that it takes just
to keep the community-by-community–based rates current.
Hay River is not a community that is serviced by diesel anymore so, as Members of this House who are from communities that are on hydro, we’re being called upon to support something for diesel communities. I hope Mr. Krutko has some sense of how those communities would feel about a levelized rate, because I personally don’t have a sense of how those communities would feel about it. As Mr. Bromley said, about 50 per cent of those communities would actually see a rate increase, and about 50 per cent would see a decrease. That’s not anything that I particularly have knowledge about. I want to state that right from the outset.
Mr. Speaker, we are concerned about the cost of living in the Northwest Territories. Certainly, with the unpredictable rising costs of fuel and with these stand-alone rate structures, it is, I’m certain, a very big concern for those communities that are on diesel-generated power as to what their costs will go to.
In the past the PUB has come back with some comments on the idea of the social engineering of power rates. I’m paraphrasing, but they have stated something to the effect that they’re there to put the rate zones in place and make sure that the consumers are being protected. However, if the Government of the Northwest Territories wants to apply a social levelizing to those for fairness purposes, that is entirely within the purview of this government to do that. Certainly, through the territorial support program, the subsidy is exactly what we have done over the years.
Right now in the communities outside of Yellowknife, the first 700 kilowatts of power that’s consumed is levelized to the Yellowknife rate on the basis that it will be paid for out of the Territorial support subsidy program. Then the business community — small business at least — does have an opportunity to apply for a commercial power subsidy through that same subsidy program.
Mr. Speaker, I would suggest that even going a step further than what the levelling of the rates has indicated, I think it is also time for this government to review the possibility of looking at that cap of 700 kilowatt hours and looking at the size of homes that people have now that are more reflective of the quality of life that people want to enjoy in the communities — the modern conveniences which are now in homes which all consume energy. Certainly, there are many appliances on the market now that consume less energy, but the sheer volume of electric appliances and conveniences in the home, the sheer number of them, has actually increased. I don’t think it would hurt to take a look
at that cap of 700 kilowatt hours per household and see if that is sufficient.
To the issue of the small business subsidy, I think that this government should look at applying a subsidy at source as opposed to expecting people to apply for it after the fact. I think that would take a great deal of pressure off the small business community, and the economic development of our smaller communities will not be impeded by exorbitant and untenable power rates, which right now essentially they are getting very little support for.
Mr. Speaker, I want to note that this motion is relevant to the communities that have power that is generated by diesel. This does not speak to those communities like Fort Smith, Fort Resolution, Hay River, Yellowknife, Behchoko — and I am sure there are others — and Dettah that are on hydro. This is the Member’s attempt to bring forward a suggestion to the government to look at the viability and the benefit of the diesel communities having a harmonized or levelized rate. To the extent of that work being undertaken, this government should take this very seriously.
I feel very confident to support this motion and would encourage the government to respond favourably to looking at this. If we are serious about identifying the costs of living in the North as a priority of the 16th Assembly, this is a very good
place to start.
So with that Mr. Speaker, I’d just say that I will be supporting the motion. Thank you.