Thank you, Mrs. Groenewegen. The honourable Member for Kam Lake, Mr. Ramsay.
Debates of Oct. 23rd, 2008
This is page numbers 1895 to 1920 of the Hansard for the 16th 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
Energy Conservation Contradiction
Members’ Statements
October 22nd, 2008

David Ramsay Kam Lake
Thank you, Mr. Speaker. I’m going to join my colleagues today in discussing issues related to power rates and the operation of the Northwest Territories Power Corporation.
Power rates and the operation of the NWT Power Corporation have been cause for much discussion and corresponding motions in this House over the five years that I’ve been here. There are some things I just don’t understand when it comes to the NWT Power Corporation. The first is that because of climate change and high prices for power, Northwest Territories residents have been doing all they can to limit their usage of power. The overall power consumption has been reduced in our territory because of conservation, Mr. Speaker. Why is it, then, that if conservation is taken
seriously by our residents, rates are proposed to go up? People don’t understand this, and I don’t understand it.
Also, the General Rate Application is predicated on the price of oil being $140 a barrel. Over the past six months the price of oil has fallen to $65 a barrel, and some economists and industry experts even predict $50 a barrel by Christmas. This makes it very difficult for residents to understand why the increase to their power rates is necessary. The whole premise for the increase is now completely blown out of the water, Mr. Speaker. The government better get ready to explain and answer to residents across this territory this winter when they are hit hard by these increased rates.
Another thing I don’t understand is why some communities in the Northwest Territories today are paying 25 to 35 per cent more for power than other comparable communities serviced by the Power Corporation. Communities serviced by Northland Utilities, like Trout Lake, pay less than a counterpart community like Nahanni Butte, which is serviced by NWT Power Corporation.
In dealing with power rates, I’m of the belief that as a government our first priority and responsibility is to deliver the best, most affordable power rates possible to our communities and the residents who live there. Why do we allow the Northwest Territories Power Corporation to continue to pay out bonuses to senior management when many in our communities struggle every month to pay the power bill?
We need to re-examine the entire structure of the Northwest Territories Power Corporation and its subsidiaries. It’s getting overly complicated and difficult to understand its role and mandate. On behalf of the residents of the Northwest Territories it’s high time to take the action necessary to restore public confidence in the Northwest Territories Power Corporation. Mahsi.
Energy Conservation Contradiction
Members’ Statements
Cost Drivers Related To High Energy Costs
Members’ Statements

Tom Beaulieu Tu Nedhe
Mahsi cho, Mr. Speaker. [English translation not provided.]
Today, like my colleagues, I would like to talk about the high cost charged to our residents by the NWT Power Corporation.
My constituents have expressed many concerns over their power bills and the seemingly increasing power rates. This burden has been made even more difficult to deal with when they hear about bonuses that are being paid out to NWT Power
Corporation executives while they shuffle their meagre budgets to pay for the basic essentials of life.
I looked into the operating cost distribution of the Power Corporation and was appalled to find out that as a business entity the NWT Power Corporation profit represents only 11 per cent of total operating costs, while interest payments represent almost 13
per
cent of total operating
costs. In addition to this, Mr. Speaker, the Power Corporation is charging almost 16 per cent of total operating costs towards amortization payments, for a total of almost 40 per cent being charged out in these three areas.
Mr. Speaker, with the high fuel costs during resupplies adding to the already high cost of living for NWT residents, I would like to know if the NWT Power Corporation is exercising fiscal responsibility and looking at cost breakdowns of these cost allocations. Surely these are areas that can be adjusted downwards to lower the overall operating costs at the NWT Power Corporation, and these savings can be passed on to residents of the NWT.
In Fort Resolution we see power from the Taltson hydro dam, while in Lutselk’e the residents are solely dependent on diesel. Both communities, however, consider the power rates to be much too high.
Cost Drivers Related To High Energy Costs
Members’ Statements

The Speaker Paul Delorey
Thank you, Mr. Beaulieu. The honourable Member for Yellowknife Center, Mr. Hawkins.
Restructuring The Northwest Territories Power Corporation
Members’ Statements

Robert Hawkins Yellowknife Centre
Thank you, Mr. Speaker. The Power Corp issue is an accountability issue for me. It’s about value for money. The day to day question is: how is it being operated? Are we getting the money that we expect out of this organization? Are we getting the accountability out of this organization that we expect for our citizens in the territory?
Mr. Speaker, I think the government has a role to play. I think it’s time to roll the NWT Power Corp into the territorial realm of responsibility, just like any other department. They act like a department but with the independence of free rein. It’s a grey area as they exist right now. They’re not privatized, but they’re not quite government, so they get to sort of play on their own field the way they want. If they set their own rules, who gets punished? The consumer.
I wouldn’t suggest we ram the PUB through any type of exemption or roll it into the GNWT. I still think today that it provides a service, but the fact is I believe in better performance, and what better
performance than bringing it here to the floor of this House for that type of scrutiny?
Mr. Speaker, it’s about accountability that I don’t think exists. It wasn’t that long ago we heard about the U.S. bailout. What it did was it helped look at bad practices. It helped look at bad policies. That bailout also helped look at — and by the way, rewards, bonuses for their CEOs who run this corporation…. I question this: what about the efficiency of the NWT Power Corp? Does the rate increase, in my mind, mock or similarly look like a proposed rate increase versus a bailout package? Possibly. In my view it’s scandalous. It looks at rewarding bad policies that aren’t reviewed by us. It looks at rewarding bad management, possibly not reviewed by us. And certainly it rewards CEO bonuses, again unaccountable and not examined by us.
Mr. Speaker, my issue is about having confidence in the system. The way it’s set up today, I don’t have confidence in the way it’s structured.
I’m going to close by saying we could probably do the best for our citizens by having it here, accountable in the Legislature, where it belongs.
Restructuring The Northwest Territories Power Corporation
Members’ Statements

The Speaker Paul Delorey
Thank you, Mr. Hawkins. Item 4, reports of standing and special committees. The honourable Member for Nahendeh, Mr. Menicoche.
Committee Report 1-16(3) Report On The Review Of The Human Rights Commission 2006–2007 Report
Reports of Standing and Special Committees

Kevin A. Menicoche Nahendeh
Thank you very much, Mr. Speaker. A report on the review of the Human Rights Commission 2006–2007 report.
Introduction
The Standing Committee on Government Operations met on October 9, 2008, to review the 2006–2007 report of the Human Rights Commission. The committee would like to thank Ms. Mary Pat Short, Chair of the Human Rights Commission, and Ms. Thérèse Boullard, director of Human Rights, for appearing before us.
2006–2007 Annual Report
The 2006–2007 report does not include any recommendations; however, the committee would like to take the opportunity to comment on other issues that were discussed during our public meeting.
The 2006–2007 annual report was the third report of the Human Rights Commission since its
establishment on July 1, 2004. The committee welcomed the concise and visually informative new reporting format and is pleased with the commission’s offer to include a community breakdown of the origin of inquiries and complaints in future reports.
The committee was pleased to hear of the progress the commission has made in raising awareness about human rights through its education and outreach activities, including community visits, public presentations, information sessions, educational audio conferences and several publications. The success of the Human Rights Commission’s awareness activities appears to be clearly demonstrated by the steep increase in inquiries, from 253 in the previous year to 427 in 2006–2007.
The committee welcomes the commission’s approach to addressing issues of discrimination in the workplace through the publication of Employer’s Guide to Human Rights, Duty to Accommodate, and Alcohol and Drug Testing, combined with information sessions that were conducted for employers.
The committee appreciates the work of the Human Rights Commission with youth and schools, in particular the development of resources addressing bullying among students.
We acknowledge the commission’s efforts to bring education and awareness workshops on human rights and the NWT Human Rights Act to all regions of the Northwest Territories. The committee highlights the importance of visits to smaller communities, as they will provide residents with a better understanding of their rights under the act.
The committee understands the commission’s need for funding increases due to the growth of inquiries and hearings before the Human Rights Adjudication Panel. However, the committee is concerned about the ability to fund continued budget increases without compromising service and outreach activities in future years.
Conclusion
The committee commends the commission’s work and achievements to date and looks forward to monitoring the continued evolution of human rights in the Northwest Territories.
Mr. Speaker, I move, seconded by the honourable Member for Yellowknife Centre, that Committee Report 1-16(3) be received and adopted.
Motion carried.
Committee Report 1-16(3) Report On The Review Of The Human Rights Commission 2006–2007 Report
Reports of Standing and Special Committees

The Speaker Paul Delorey
Item 5, returns to oral questions. Item 6, recognition of visitors in the gallery. The honourable Member for Monfwi, Mr. Lafferty.
Recognition of Visitors in the Gallery
Recognition of Visitors in the Gallery

Jackson Lafferty Monfwi
Mahsi, Mr. Speaker. It gives me great pleasure to recognize some of the students here from the Aurora College Social Work Program. There might be some names that might be challenging, but I will do my best: Dolly Pierrot, Joy Muyambo, Tania Ramm, Janell Dautel, Faith Woodruff, Shirley Tsetta, Mary Ann Jeremickca, also a Tlicho member, Jackie Chinna, Nellie Norwegian, Cecile Deneyoua and instructor Bruce Stewart. Thanks for coming.
Recognition of Visitors in the Gallery
Recognition of Visitors in the Gallery

Sandy Lee Range Lake
It gives me great pleasure to join Mr. Lafferty to recognize another class, nursing students, from Aurora College: Jenna Alexander, Leslie Bader, June Bartlett, Heather La Foy, Lindsay Ransom, Shannon Rutherglen, Ayrma Schreurs and instructor Vee Faria. We would like to welcome them.
Recognition of Visitors in the Gallery
Recognition of Visitors in the Gallery

Michael McLeod Deh Cho
Mr. Speaker, it’s not every day that the women outnumber the men here in the House. I would like to welcome all the students from Aurora College, especially the students from the second year Social Work Program. I have two former constituents who are in the program, and I would to welcome them: Nellie Norwegian from Fort Providence and Cecile Deneyoua, formerly from Fort Providence and now living in Hay River. I’d like to say welcome to both of them.
Recognition of Visitors in the Gallery
Recognition of Visitors in the Gallery

Norman Yakeleya Sahtu
Mr. Speaker, I would also like to welcome a constituent of mine who’s taking this valuable program for the people in the Sahtu: Ms. Dalphine Pierrot of Fort Good Hope, working in Norman Wells. I would also like to welcome Cecile Deneyoua, my sister-in-law.
Recognition of Visitors in the Gallery
Recognition of Visitors in the Gallery

Bob Bromley Weledeh
I’d like to recognize Leslie Bader, at least a former constituent — perhaps still — and a practitioner of the arts. Welcome, Leslie.
Recognition of Visitors in the Gallery
Recognition of Visitors in the Gallery

The Speaker Paul Delorey
I, as well, would like to welcome Cecile Deneyoua to the gallery today. She’s a constituent of mine from Hay River. To anyone else in the gallery that we’ve missed today, welcome to the House. I hope you’re enjoying the proceedings.
Item 7, acknowledgements. Item 8, oral questions. The honourable Member for Tu Nedhe, Mr. Beaulieu.
Question 19-16(3) NWT Power Corporation Operating Costs
Oral Questions

Tom Beaulieu Tu Nedhe
Thank you, Mr. Speaker. As all of us gave Member’s statements on the Power Corp today, I have questions for the Minister responsible
for the NWT Power Corp. Can the Minister advise me if the NWT Power Corporation can re-examine their cost allocations in non-tangible areas such as profit, interest and amortization and try to lower the costs in those three areas?
Question 19-16(3) NWT Power Corporation Operating Costs
Oral Questions

The Speaker Paul Delorey
Thank you, Mr. Beaulieu. The honourable Minister responsible for the NWT Power Corporation, Mr. Roland
Question 19-16(3) NWT Power Corporation Operating Costs
Oral Questions

Floyd Roland Inuvik Boot Lake
Thank you, Mr. Speaker. When the Power Corporation files for any rate applications or changes to its rates, it goes under review by the Public Utilities Board. It looks at the whole gamut of the operation in the Power Corporation. Those are areas that would be reviewed.
Amortization deals with the capital expenses of the public corporation and replacing assets that are on the ground that would need to be replaced, such as power poles, generation facilities and so on. We try to do the best we can in dealing with those areas. In fact, I believe we provide information to Members on the breakdown of those particular areas that affect the price rates that we pay in our communities.
Question 19-16(3) NWT Power Corporation Operating Costs
Oral Questions

Tom Beaulieu Tu Nedhe
Mr. Speaker, considering that the fuel resupply had occurred when fuel costs were at their highest, can the Minister advise if the NWT Power Corporation can do a comprehensive review of what they are charging the communities that are currently locked into the high cost of fuel that was resupplied this summer?
Question 19-16(3) NWT Power Corporation Operating Costs
Oral Questions

Floyd Roland Inuvik Boot Lake
Mr. Speaker, the fuel resupply is something we work with the Department of Public Works and Services, Petroleum Products Division on. We combined the services I believe a couple of years ago so that we can enjoy a better sale price, if we can put it that way, on bulk purchasing of our product and our storage facilities in communities. The unfortunate thing is that when resupply happened, it was at about the highest price of oil throughout the season. That’s a difficulty we face. Already the Power Corporation is having to deal with the higher prices from future years. That’s why a rate application went into the system.
As for trying to go back and redo it and look at it for this fiscal year, that would be very difficult, because the Power Corporation operates under, I guess in a sense, the evaluation of the Public Utilities Board, which looks at the operation and what it can charge for rates in communities.
Question 19-16(3) NWT Power Corporation Operating Costs
Oral Questions

Tom Beaulieu Tu Nedhe
Mr. Speaker, in addition to the regulatory regime that directs the Power Corp and helps the Power Corp set their rates, can the Minister direct a comprehensive review of the NWT Power Corporation to examine its full operating costs, especially in the area of how they acquire the infrastructure?
Question 19-16(3) NWT Power Corporation Operating Costs
Oral Questions

Floyd Roland Inuvik Boot Lake
Mr. Speaker, the process we’re involved with now is looking at the energy costs in the Northwest Territories through the Ministerial Energy Coordinating Committee as well as going through our business plans, looking at alternatives of operation. I met with the Northwest Territories Power Corporation board and discussed with them some of the impacts in the Northwest Territories. We need to definitely look at all of the operation. As Member Groenewegen stated, don’t leave any stone unturned.
Question 19-16(3) NWT Power Corporation Operating Costs
Oral Questions
Question 19-16(3) NWT Power Corporation Operating Costs
Oral Questions

Tom Beaulieu Tu Nedhe
Thank you, Mr. Speaker. It appears that other companies in other jurisdictions that provide power with hydro are able to provide that power to their customers at a much lower rate than the NWT Power Corporation is able to do. Can the Minister direct the NWT Power Corporation to examine a way to reduce the costs of hydro to the communities?
Question 19-16(3) NWT Power Corporation Operating Costs
Oral Questions

Floyd Roland Inuvik Boot Lake
Mr. Speaker, the process that is in place right now is one, again, where the rate structure that’s in place is one the PUB operates under. We’ve heard one of the Members talk about community rate zones or postage stamp areas. In the last process when that issue was discussed, the Public Utilities Board stated that it would be up to the Assembly to decide what structures would be put in place. We couldn’t say for ourselves that we could direct the Power Corporation to lower rates in hydro communities alone. We would have to look at a structure through this forum here and decide if we want to make changes to our legislation that could affect how rates are looked at and then how the PUB would regulate that from that point on. So we’re prepared to look at all options that are before us in the Territories, but the direction for that side of it would have to come from this House.