Mr. Speaker, today I would like to speak to our government’s overall approach to energy, and specifically to the processes that are now underway that will help shape the future of the electricity system in the Northwest Territories.
Building upon the NWT Energy Plan and Greenhouse Gas Strategy, the vision and priorities identified by all Members of the 16th Legislative
Assembly, and with further input of all Members, the GNWT released our Energy Priorities Framework last October.
This document clearly
outlines our priorities, from enhanced efforts in energy conservation and efficiency to fundamentally changing our energy supply and reducing our dependence on imported diesel.
As the Minister of Finance outlined in his budget speech, our government has made an unprecedented financial commitment to bring about real change and reduce the cost of living, especially in our remote communities.
Mr. Speaker, we need to examine all opportunities to reduce energy costs and this includes looking at our electricity sector, how our electricity is generated and delivered, and how our electricity
rates are established. Our key process for this is our review of electricity regulation, rates and subsidy programs, which Minister Bob McLeod will be speaking to today.
In the context of the overall electricity review, there are two related processes I have committed to undertake.
The first is a review of the NTPC.
Members of this House and the Association of Communities have called on the government to review the structure and the efficiency of the NWT Power Corporation. Concerned about high electricity rates, customers and leaders have asked the government to confirm that the corporation operates as efficiently as it can. As Minister responsible for the Power Corporation, I plan to appoint an expert panel of industry and audit professionals. Before the end of this session, I will provide the names of the members of the panel to all Regular Members and inform the public.
Mr. Speaker, the panel will examine the financial statements, PUB rate applications, and general operations of the NTPC. I will be asking the panel members to meet with the PUB. A comparison of costs, rates, and practices will be done between NTPC and NUL, so that residents can obtain a fair comparison of community rates and the reasons for differences. The panel members will conduct comparative analyses of similar utilities, though, admittedly, there are few simple comparisons to our Power Corporation.
The panel members will then share the understanding they gain from their detailed analysis by conducting a series of meetings with important stakeholders. The goal of this exercise is to build a common understanding of the reasons underlying our current electricity costs, and to discuss opportunities for change. Our Power Corporation is a valuable asset of this government. If it can be improved, we ought to pursue those improvements. If services can be improved, and rates lowered or at least stabilized, we need to pursue those changes.
Mr. Speaker, there is an important link between the NTPC and electricity reviews. The electricity review is intended to discuss the implications of adding or reducing the number of companies operating in the NWT’s electricity sector. The NTPC review will provide data on the opportunities and implications
of reducing the number of utility players to one, whether it be private or public.
The second is a review of the ATCO proposal for a partnership arrangement in the development and delivery of power in the Northwest Territories, which I announced in January. This review should be considered as due diligence on the part of our government, in response to an unsolicited proposal. I am expecting an initial report in April to help determine whether this proposal should be pursued further.
The ATCO review will help us understand how a merged and privatized utility would operate in NWT, including changes to the way NTPC currently operates. The preliminary review of this proposal will help government understand the issues related to electrical utility privatization, and regulatory implications of additional privatization.
Mr. Speaker, again, there is an important link between the ATCO and electricity reviews. The electricity review will comment on privatization issues within the NWT electricity sector, and the appropriateness of our electricity sector regulation. It will also address how government may need to change its ability to direct its regulatory body, the Public Utilities Board.
I commit to working closely with all Members of the Legislative Assembly as we examine these complex issues and I urge all residents to take an active part in the public discussions that will take place over the coming months. Thank you.
