This is page numbers 767 - 824 of the Hansard for the 19th Assembly, 2nd 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 going.

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Consideration In Committee Of The Whole Of Bills And Other Matters
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Kevin O'Reilly

Kevin O'Reilly Frame Lake

Thanks, Madam Chair. There was a review of Arctic Energy Alliance. It's adjusted some realigning of some of their work, and I am just wondering how we are making out with that. There is a lot of additional funding that is coming from the federal government that is going into Arctic Energy Alliance. How is that work progressing, and have they realigned their programs according to the evaluation that was carried out? What's happening? Thanks, Madam Chair.

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The Chair

The Chair Lesa Semmler

Thank you, Member. Minister.

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Katrina Nokleby

Katrina Nokleby Great Slave

Thank you, Madam Chair. Yes, this is the area for Arctic Energy Alliance. It was part of the priority to give them more funding. I am going to pass it over to Dr. Dragon for the more detailed explanation. Thank you.

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The Chair

The Chair Lesa Semmler

Thank you, Minister. Dr. Dragon.

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Dr. Dragon

Thank you, Madam Chair. Arctic Energy Alliance, in terms of their funding, they get $2.74 million in core funding that is ongoing from the GNWT. We have also been able to leverage $3.07 million. That's a combined program through that LCELF program, as well as GNWT, for a total funding allotment of $5.8 million.

In terms of their review, and as they're looking at programs, some of the key projects that they're currently working on right now are diesel generator replacements in Sachs Harbour and Lutselk'e; conversion of Fort Simpson from diesel generation to natural gas; hydro power overhauls that they are working on with the existence of Taltson and Snare systems; the Inuvik wind project and the Fort Providence transmission line; and finally, some energy retrofits.

They are an arm's-length group from us and have their own board of directors, but I believe that they have taken those lessons learned and applied it to these programs. All of my feedback from this funding, and in terms of the programs that they have, is they feel very complemented with the amount of funding that is provided in this fiscal year. Thank you, Madam Chair.

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The Chair

The Chair Lesa Semmler

Thank you, Dr. Dragon. Member for Frame Lake.

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Kevin O'Reilly

Kevin O'Reilly Frame Lake

Thanks, Madam Chair. I see that the clock is ticking down, so I am just going to make a couple of comments here. Look, Arctic Energy Alliance, I think they do good work. Personally, we have accessed them a couple of times for energy efficiency work on our own home. Part of the difficulty is the programs that they offer, you have to have the money to be able to invest to do the upgrades, and it's often expensive work. They need to find ways to broaden their programs for people who don't have the cash up front and make the programs more accessible. That is a suggestion.

The other thing that I continue to hear complaints about in Yellowknife, and I understand why they did this, is they don't support solar projects in Yellowknife anymore, because there is some concern about Yellowknife already being a hydro-based community. Why would we give people money to take themselves off the grid when hydro provides the power here? I know that that's a low carbon economy fund issue, as well, but I understood that they were going to try to find some other ways to support solar. It's also tied up with the bigger issue with getting rid of big grids, period, in the Northwest Territories and building energy self-sufficiency in individuals' homes, but all of that to say, Madam Chair, I guess I would like to get the Minister to -- SCEDE can do this on its own, but we need to have Arctic Energy Alliance come in and talk to us about the programs that they offer, especially with this injection of new money, and how they're looking at redesigning that and making their programs more accessible. Thanks, Madam Chair.

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The Chair

The Chair Lesa Semmler

Thank you, Member. I'll take that as comments, and I will go on to the next person. Member for Hay River South.

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Rocky Simpson

Rocky Simpson Hay River South

Thank you, Madam Chair. I guess there was, I think, some discussion on fuel and fuel prices. I am just wondering, with transporting fuel, how do we arrive at a price for that? Is it based on some real numbers, or is it based on what MTS requires to break even? Thank you, Madam Chair.

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The Chair

The Chair Lesa Semmler

Thank you, Member. Minister.

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Katrina Nokleby

Katrina Nokleby Great Slave

Thank you, Madam Chair. I would hope that everything in my department does is based on real numbers. I hope he doesn't mind, but I will let Dr. Dragon answer this one, too. Thank you.

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The Chair

The Chair Lesa Semmler

Thank you, Minister. Dr. Dragon.

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Dr. Dragon

Thank you, Madam Chair. Yes, very much based on real numbers, and very much based on market prices when we're getting them and buying them. Buying that quantity of fuel from the South, and then it has to either get trucked or trained up, and then put on barges, and then supplied to the 16 communities that we provide fuel through MTS. Again, we are looking at various options when we're looking at fuel pricing. There are different options right now, given the price of fuel. We've looked at options of, actually, maybe coming from the North versus coming from the South, and in fuel services, we're looking at trying to maximize the dollar for the taxpayer. We're currently looking at those two options. We haven't landed on those, but we do have, again, this capacity to bring fuel into the North in different methods and we're exploring those. Thank you, Madam Chair.

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The Chair

The Chair Lesa Semmler

Thank you, Dr. Dragon. Member for Hay River South.

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Rocky Simpson

Rocky Simpson Hay River South

Thank you, Mr. Chair. I'm not sure where you're buying the fuel from, where we're buying it from, if it's a rack price in Edmonton or where it is. Have you looked at, I guess, the rack price in Edmonton versus rack price say, in Vancouver, and rack price somewhere else overseas, and coming up through the North? I'm not sure what the rack price is. You might be able to give us a number. It doesn't have to be a solid number, just maybe a range of what we are paying for rack price and where. Thank you, Madam Chair.

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The Chair

The Chair Lesa Semmler

Thank you, Member. Dr. Dragon.

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Dr. Dragon

Thank you, Madam Chair. Yes, that's rack, wholesale plus. We do look at every single option in terms of buying fuel. In terms of the purchasing of fuel, because we buy so much of it, we need to look at opportunities where we can try to save on that purchase, but like anybody, every day sometimes, the fuel prices are changing. In terms of looking at how do we maximize that, our fuel services team, that's what they're doing right now, trying to figure that out and trying to maximize all the time. Thank you very much, Madam Chair.

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The Chair

The Chair Lesa Semmler

Thank you, Dr. Dragon. Member for Hay River South.

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Rocky Simpson

Rocky Simpson Hay River South

Thank you, Madam Chair. Do you have an example of a rack price in Edmonton? Thank you, Madam Chair.

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The Chair

The Chair Lesa Semmler

Thank you, Member. Minister? Dr. Dragon.

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Dr. Dragon

Thanks. In terms of an exact price, one of the things that we do with the rack, wholesale plus, we get a discount to the wholesale published price. Then, we add the cost of trucking or barging, plus a margin to administer. We negotiate a discount to rack, and we are definitely considering other options than Edmonton. Right now, it's Edmonton, and I'd have to get back to you with that price. Thank you, Madam Chair.

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The Chair

The Chair Lesa Semmler

Thank you, Dr. Dragon. Member for Hay River South.

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Rocky Simpson

Rocky Simpson Hay River South

Thank you, Madam Chair. I guess in the news in the past, we saw negative oil prices. Has that affected the price that the GNWT has been paying for fuel or gas? Because that's a question that constituents ask: why is the price at negative whatever, and we're still paying $1.00, $1.20 a litre, and in Edmonton, they're paying 50 cents a litre? I'm just wondering, and I understand that we're buying bulk and we have to kind of have it ahead of time to get it on the barges and move it north. Thank you, Madam Chair.

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The Chair

The Chair Lesa Semmler

Thank you, Member. Minister.

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Katrina Nokleby

Katrina Nokleby Great Slave

Thank you, Madam Chair. That is correct. We have bought it at an earlier time and, therefore, we turn around and we sell it back. At the time when we're selling it, we sell it for what we purchased it for. We don't make any profit off the fuel sales. Unfortunately, there is a lag where, if we had bought the fuel and shipped it up the previous year, it's still being sold at that same price. We did have some conversation about whether or not we could equalize and look at reducing the prices now. There needs to be a more fulsome conversation, but the gist of that is: can we burden the future consumer with that extra price? So it's a bit more complicated than that. The short and basic of it is, we bought it at that price last year, and that's what we're selling it for now. Thank you, Madam Chair.