I do want to make the case that the world has changed in the last six months, Mr. Speaker. Our financial world went topsy-turvy, and we cannot be relying on our old user pay system that’s there just because fuel prices are going up. We cannot go to Granny from Nahanni and ask for more money to pay the power costs in those communities. Because of that, I ask again: can we stop this current General Rate Application process? It’s based on old, erroneous information. Plus I do not believe that this General Rate Application includes the review of operating maintenance costs, which the people have to pay for, and the bonuses that are included. Mahsi.

Mr. Speaker, the Member talked about old, erroneous numbers. The numbers are tested quite thoroughly with the volumes of information that have to be provided to the Public Utilities Board about the operation of the Power Corporation and why it’s seeking any changes to its rates. That is something that is there. Those numbers are proven. Our question and further justification if required is given. That is a fairly substantial process with the volumes of information that have to be given at any application to the PUB around rate structures and changes to rates.

The bigger piece…. Again, I say that the government overall provides the Territorial Power Support Program, which minimizes the impact on individuals outside of Yellowknife who pay a higher rate than Yellowknife. That’s, I guess, the area that we would have to look at if we want to minimize further impact across the North.

As well, as I’ve already mentioned to a number of other Members — now that we are going through this process of looking at energy development, generation, regulation — that here’s the opportunity with which this House can give clear direction on how we proceed and how we change things going forward. Because I agree: we can’t continue doing business the same old way.

Once again, I believe that the General Rate Application is based on erroneous information, and I’d like to see that it is at least withdrawn until it is re-evaluated one more time. That’s something that people have been telling us as their MLAs. The will of the people also becomes the will of this House. And that’s something I’d like to bring to the Minister. Will he look at pulling the General Rate Application, reassess the application package and put in some consistent and current information?

The fact is that the information provided goes through much scrutiny and is tested. It is not erroneous information. That’s the environment that we have to operate in, the existing framework. Members want to change that framework. As I’ve stated already, we are more than open to looking at changing the framework we operate in, and that’s across anything from the rates to the regulations to the structure. It is time that we as the Government of the Northwest Territories look to the future of what we can provide and how that provision of services affects the constituents in our communities.

Again, much of this rate application will get picked up through the Territorial Power Support Program for those people who live within the 700 kilowatt hours.

Thank you, Mr. Roland. Final short supplementary, Mr. Menicoche.

Thank you very much, Mr. Speaker. Once again, I say it’s an old system. It comes from I don’t know how many years back. It’s backwards, and it’s not working for the people. We’re asking people to save power in the smaller communities, yet in order to make money, the Power Corporation has to charge more. That’s a backwards system. I’d like the Minister to acknowledge that and look at changing that system and stop this General Rate Application and review it.

With the existing framework we have to operate under — that is, the acts that are in place, the Public Utilities Board regulation process — if we were to delay this process, then the potential is that next year we would have to go for even a higher request for operation.

The fact that individuals have been saving on their energy use, yes, is one that helps, in a sense. But,

Mr. Speaker, I’ll speak from experience. I have a large family; I have a home in Inuvik and pay a higher rate than Yellowknife. For approximately 11 months of the year I keep — I should say, my wife keeps — the power consumption below the 700 kilowatt hours, and we live within that time frame. Now, not all people can do that, because of the quality of the homes they live in and the nature of the weather and weather patterns.

But, again, if we want to change the way it’s looked at, the way it’s reviewed and how we provide power, the opportunity’s here. I’m agreeing: let’s do that; let’s really look at how we deliver those services. Through the Ministerial Energy Coordinating Committee we’re working on a paper that we can bring to Priorities and Planning and set the direction we go in the Northwest Territories.

Thank you, Mr. Roland. The honourable Member for Nunakput, Mr. Jacobson.

Thank you, Mr. Speaker. In my Member’s statement today I spoke about the high power costs in my riding of Nunakput and the fact that longer winters mean the people I represent consume more power. My questions today are for the Minister responsible for the territorial power subsidy, the Hon. Michael Miltenberger.

Can the Minister explain to this Assembly how the figure of 700 kilowatts, subsidized to the Yellowknife rate, came into being? My understanding is that this is the cost to run a fridge and a furnace and few lights.

Thank you, Mr. Jacobson. The honourable Minister of Finance, Mr. Miltenberger.

Thank you, Mr. Speaker. We inherited the Territorial Power Support Program when we took over the Power Corporation in 1988. The 700 kilowatt figure was, as I understand, sort of an average cost for your average household. It’s been there for some time, but I believe it’s for the total cost per household, as opposed to a fridge, a stove and a couple of light bulbs.

The Minister said in 1988; that’s a long time ago. I think I was 16 years old. Would the Minister agree that the far northern communities that I represent may need more than the 700 kilowatts of power provided to a minimum household?

Mr. Speaker, the 700 kilowatts is an average consumption figure, and most families across the North are able to live with that.

As Canadians, as Northerners we add more and more power using applications and appliances that drive up our own costs. We have things like vampires that just keep running 24 hours a day, waiting quietly to be called into use; we keep adding to our power consumption.

The issue is, is it more or is it conservation? The Yukon, I understand, has 1,000 kilowatts; we have 700. That’s an issue of debate. The commercial subsidy is another one that’s an issue of debate as well.

Will the Minister commit to examining the issue to determine whether the 700 kilowatt total is still relevant and whether the government should consider a tiered approach on the amount of kilowatts that are subsidized depending on where we live in the NWT?

The Premier has indicated today and it’s been mentioned in the past that we have an opportunity with the work that’s occurred and underway to look at the regulation, the generation and the distribution of power in the Northwest Territories: the subsidies, the differential rate zones that are currently in place, the structure of the Power Corporation. Those are all subjects that are on the table for discussion as we look at dealing with the cost of energy, the cost to the small communities, sustainable communities, conserving energy and greenhouse gas emissions. All those things are now here for us in this Legislature to put our minds to.

Thank you, Mr. Miltenberger. Final supplementary, Mr. Jacobson.

Thank you, Mr. Speaker. Would the Minister commit to sharing the results of such a study with the Standing Committee on Economic Development and Infrastructure?

Better than that, Mr. Speaker; we’re basically, as a government, reaching out to the Members to say, “Let’s engage together to look at this very complex, difficult subject, in terms of the redesign, the structures” — the very issues that the Members have identified as problematic. The opportunity is here. The work is underway. We’re looking at doing a lot of things in the next number of months that are going to be fundamental in terms of the changes they could bring. Collectively, we could do a very good job of this.

Thank you, Mr. Miltenberger. The honourable Member for Mackenzie Delta, Mr. Krutko.

Thank you, Mr. Speaker. As I stated earlier, my question is going to be directed to the Minister responsible for the Public Utilities Board.

Mr. Speaker, this government, every four years, goes through an application process of some 33 applications that have to be compiled and submitted to the PUB board for review. The PU review board is the one that establishes the rates that are going to be implemented in the communities. It’s not the Power Corp; it’s the PUB.

There was a decision made in the early ’90s to establish postage stamp rates, which means that every community has to apply individually in regard to what the rate is going to be. This government alone spends almost $3 million on these rate applications for 28 communities, not counting the Northland Utilities’ application.

I did move a motion in this House back in February directing the government to approach the Public Utilities Board and make amendments to the Public Utilities Act to allow the Legislative Assembly to consider looking at levelized rates. I’d like to ask the Minister if he’s had an opportunity to meet with the PUB for them to bring forward legislation that will allow us to establish levelized rates.

Thank you, Mr. Krutko. The honourable Minister responsible for the Public Utilities Board, Mr. Bob McLeod.

Thank you, Mr. Speaker. The motion that was moved by the Member and was approved by the Legislative Assembly I think will assist us in our review. As I’ve written to the Member, we are undertaking a review. We will be asking the general public, the people who pay the bills, to give us their feedback and direction as to how we should deal with this issue.

The PUB takes direction from this Legislative Assembly. Through the legislation we direct how they should operate. Once this review is undertaken and we obtain the results and we reach agreement as to how we should regulate it, we will then give the necessary direction to the PUB.

Mr. Speaker, as stated by the Premier and now the Minister responsible for the PUB, has the government considered bringing forward legislation that will direct the PUB to take a look at levelized rates?

Mr. Speaker, we’re looking at a wide range of possibilities with regard to rates. We want to hear from the people out there, the electricity users, whether that is something that would be supported. A levelized rate would mean that everybody pays the same rates throughout the

Northwest Territories, whether you use hydroelectricity or thermal electricity or diesel electricity. At the time the decision was made to go with the postage rates, it was felt that rates should be accumulated by individual communities. With our review we will go to the communities, and we will find out what the users want.