Just one last question, and then I’ll

leave this topic. Can you please confirm for me

what the proposed route is that has been put forward for environmental review?

There is a proposal for 690

kilometres of new transmission line. I don’t have the map in front of me, but it’s the transmission line from the Taltson Dam to the mines, and it sort of takes a jog to the left of Lutselk’e. I believe it goes across the east arm and up to the diamond mines.

So just for clarification, it goes

north from Taltson, around the northeast arm of the Great Slave Lake near Artillery Lake and then back northwest towards the diamond mines north of Yellowknife.

Mr. Chair, I’d like to ask my

colleague the Minister responsible for NTPC to clarify the proposed route.

The Minister responsible

for the Power Corp, Mr. Yakeleya.

Thank you, Mr. Chair. As

the Minister indicated, the 690 kilometres of new transmission line goes up on the east side of the lake all the way up to Lutselk’e, up to Fort Reliance and back in northwest up to the three diamond mines.

I know I said the last one was

going to be my last one, but this is going to be my last one, I promise. A lot of faith is being put into the idea that the diamond mines in fact want these power lines and have an interest in the power that we’re going to provide. Has this government had conversations with the diamond mines? Have the diamond mines confirmed that they are in fact interested in purchasing power from us?

The Deze Energy

Corporation

,

made up of a NWT Power Corp

subsidiary and the Akaitcho Territory and Métis Energy, has formed this corporation. They have had early discussions with the diamond mines. I understand they are in negotiations. They are negotiating the agreement. They are concluding some of their negotiations with the diamond mines. They are the ones that have been in discussions with the Deze Energy Corporation in terms of a business deal to supply these diamond mines with hydro power.

Next on my list I have

Mr. Hawkins and Mrs. Groenewegen. Mr. Hawkins.

Thank you, Mr.

Chairman. I’m

curious as to the accountability framework that will exist for the Taltson hydro electricity: the partnership they’d have with the Deze group and whatnot. What type of framework will there be going forward so that it can be accountable to this Assembly?

Minister of ITI.

Thank you, Mr. Chairman. The

Deze Energy Corporation is a business arm of the NWT Energy Corporation, which is a subsidiary of the Northwest Territories Power Corporation. The Deze Energy Corporation is an equal one-third partnership between the Akaitcho Energy Corporation, the Métis Energy Company and the Northwest Territories Energy Corporation.

What type of accountability does the

reporting mechanism of the Deze, then on to the NWT Hydro Corp…? What type of accountability framework does it have to the Assembly?

The Deze Energy Corporation

is an independent company in which the NWT Energy Corporation has a one-third share. It reports through the Northwest Territories Hydro Corporation.

I thank the Minister for that. Who

does the NWT Hydro Corporation report to?

The Northwest Territories

Hydro Corporation reports to the Minister responsible, who is my colleague the Hon. Norm Yakeleya.

I just want to be cautious. I do

support the principles of the Taltson hydro project. I support a framework that creates a grid system throughout the North. I’d certainly be in favour of an expansion that links more communities, but I’m cautiously optimistic about this project that will be bringing an opportunity to the North. The one thing that does scare me about this, which is my next question: what capacity will this bring the Taltson project up to in megawatts, and what is the projected amount of demand required by the new customers that we’re negotiating with?

The Taltson hydro project is a

proposed 36-megawatt hydroelectric expansion of the 18-megawatt Twin Gorges plant on the Taltson River. The total power available for sale would be in the neighbourhood of 45 megawatts, which would include current surplus power from Taltson of eight to ten megawatts.

I appreciate that detail. That said,

what is the expected demand or requirement that will be sold to the diamond mine companies that are asking for this project to be built?

Through power purchase

agreements yet to be negotiated and finalized, it’s our expectation that the whole amount of the 45 megawatts would be purchased, less the surplus.

You know, maybe my math isn’t up

to par, but if they’re purchasing the 45 megawatts

and that’s the amount that’s being devoted for this expansion to accommodate the needs, what would be described as the surplus?

I guess the way we look at it,

Mr. Chair, is any possible expansion would be surplus. Depending on where the route of the transmission line goes, it would impact on the surplus. As we described in a briefing to committee, this is something that we’ll update the committee on as we get more information on the progress of the negotiations.

Certainly, again, I reaffirm my

support of the principles of the project, and that has not changed in any way. But I find it odd that we’re expanding the Taltson project specifically to meet the demands only of the diamond companies, which means we’re building an expansion of the hydro facility just for them, without any potential of surplus power.

Have I understood that correctly, that there will be nothing really left over for any potential, you know, northern residences or businesses of that nature? I remember not that long ago that you were having trouble with a company in the Pine Point region trying to hook up to the spillover megawatts that were falling and being left.

Are we going to impede future development of that region because either the dam has been made too small or the fact is we’ve given away all power potential that could be drawn out of this?

The way I see it is that the

amount of surplus power remains to be seen, depending on our negotiations with the diamond mines. For the potential expansion, as I recall, there is the additional diamond mine at

Gahcho Kué. A

diamond mine would be required to be on stream to make it feasible. The original thinking was that at some point the line would have to be extended to go to a populated area.