This is page numbers 5517 - 5566 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 know.

Topics

Diane Archie

Diane Archie Inuvik Boot Lake

Thank you very much, Mr. Speaker. The Northwest Territories Public Utility Board has issued a decision on NTPC's rate application. The public utilities board gave very specific direction to NTPC and NTPC is filing a response to these directions. Again, Mr. Speaker, I need to say this again: It's the public utilities board's role to be able to determine final energy rates here in the Northwest Territories. Thank you, Mr. Speaker.

Richard Edjericon

Richard Edjericon Tu Nedhe-Wiilideh

Thank you, Mr. Speaker. Just picking up on where the Minister left off there; my question is a two-part question: Is the power rate going to go up now when you bring back an application to the utility board; are we looking at another power increase? At the same time, Mr. Speaker, the Minister made the announcement to raise the power rates only after the 2022-2023 budget was passed last year, without the opportunity for debate in the House. I'm asking the Minister to commit to more transparency around rate increases and commitments to consult with Regular MLAs before giving direction to the power corporation. Will the Minister do this? Thank you, Mr. Speaker.

Diane Archie

Diane Archie Inuvik Boot Lake

Thank you very much, Mr. Speaker. Mr. Speaker, again, the Northwest Territories Public Utilities Board is the body that determines rates for all utilities here in the territories. Northwest Territories Power Corporation has previously provided Regular MLAs information on rates. And, Mr. Speaker, we will continue to do so. Thank you.

Richard Edjericon

Richard Edjericon Tu Nedhe-Wiilideh

Thank you, Mr. Speaker. So I take it that the power rates is going to be going up. So if that's the case, Mr. Speaker, then why do we have retreats? Why do we go to these things and bring our voices to the table when we're not consulted? You know, we got over 9,000 customers here in the Northwest Territories and, you know, we want to raise powers rates? Maybe it's time to review the power corporation and maybe quit giving out these bonuses.

Mr. Speaker, the high cost of power is breaking the backs of residents, small businesses, and big industry in the Northwest Territories. How does the Minister propose to reduce these costs and make more power rates affordable in the NWT? Thank you.

Diane Archie

Diane Archie Inuvik Boot Lake

Thank you, Mr. Speaker. Mr. Speaker, the Government of the Northwest Territories energy policy seeks to balance reliability with sustainability and affordability. Projects such as the Taltson Expansion Hydro Project would allow for increased mining activity using socially-accepted, clean, green energy. Thank you, Mr. Speaker.

The Speaker

The Speaker Frederick Blake Jr.

Thank you, Minister. Final supplementary. Member for Tu Nedhe-Wiilideh.

Richard Edjericon

Richard Edjericon Tu Nedhe-Wiilideh

Okay, thank you, Mr. Speaker. Unfunded infrastructure projects, mega projects, that are decades away from completions are not a solution. Northerners can count on what short- and medium-term solution is the Minister working on to provide our residents with relief from high rates of power and to also meet the mandate of this government that they put out in 2019-2023? Thank you.

Diane Archie

Diane Archie Inuvik Boot Lake

Thank you, Mr. Speaker. Mr. Speaker, Northwest Territories Power Corporation has signalled a Memorandum of Understanding with Osisko Metals to use excess power at the existing Taltson hydro facility. So revenues generated from that industry sales would be used to mitigate some of the increased cost of power. Thank you, Mr. Speaker.

The Speaker

The Speaker Frederick Blake Jr.

Thank you, Minister. Oral questions. Member for Great Slave.

Katrina Nokleby

Katrina Nokleby Great Slave

Thank you, Mr. Speaker. The problem with the theme day is sometimes your questions get asked and answered ahead of you getting your opportunity, so bear with me. But I'm really excited to hear that one of the routes that the Minister says they're looking at is the west side of the lake. I just want to emphasize that given my statement today, about allowing for future development, I would prefer that versus going across the lake; therefore, we could have expansion off the power lines on the west side of Great Slave.

That being said, can the Minister please tell me where the total costs for the Taltson Hydro Expansion Project is at; how much of that funding is secured and how much are we still waiting on? Thank you.

The Speaker

The Speaker Frederick Blake Jr.

Thank you, Member for Great Slave.

Katrina Nokleby

Katrina Nokleby Great Slave

Minister responsible for Northwest Territories Power Corporation.

Diane Archie

Diane Archie Inuvik Boot Lake

Thank you very much, Mr. Speaker. Mr. Speaker, and I'm happy to know that the Member's quite excited about one of the two routes because when we first had these discussions, there was several routes that were contemplated. So, you know, we will continue to engage. Right now we have -- the federal government has allocated about $20 million to the GNWT to advance this Taltson expansion project. So funding is being used right now to develop Indigenous partnership, talk about some of the planning, the regulatory and feasibility work that needs to be done. So in addition, additional support from Canada will be needed to move this project to the construction phase.

Mr. Speaker, we don't have that final number yet. We're still such in the early stage of looking at this project. And, you know, I'm sure it will cost a lot of money. I just don't have that in front of me right now without having some of the work done. Thank you, Mr. Speaker.

Katrina Nokleby

Katrina Nokleby Great Slave

Thank you, Mr. Speaker. I guess it's good that there's been no final number before now so that we don't have to listen to how the cost of the supply chain has driven that number up and that's the reason why nothing has advanced on the project. So I'd say that's a good thing here.

Can the Minister speak to how much of that $20 million will be retained using northern businesses and how much of it is sole sourced to former bureaucrats? Thank you.

Diane Archie

Diane Archie Inuvik Boot Lake

Thank you very much, Mr. Speaker. I'm always happy to hear good things that are happening on this side. So I mean, when you hear that that's very exciting that we're doing good things, such as working with Indigenous groups, looking at MOU, starting all this planning work, until we know the exact costs of what's the project going forward, I don't have that number in front of me, Mr. Speaker. That's very technical, and I just won't be able to answer that. Thank you, Mr. Speaker.

Katrina Nokleby

Katrina Nokleby Great Slave

Thank you, Mr. Speaker. I think the Minister was responding to my question before that one. I asked how much of the $20 million that has already been secured and is being used towards all the work that she's listed, like the regulatory and the pre-feasibility, how much of that is being retained with northern businesses and how much is being sole sourced to former bureaucrats? Thank you.

Diane Archie

Diane Archie Inuvik Boot Lake

Thank you, Mr. Speaker. Mr. Speaker, I really don't have that number in front of me. I'd be happy to get back to the Member and respond so I'm just going to have to take notice on the costs. I just don't have that in front of me. Thank you, Mr. Speaker.

The Speaker

The Speaker Frederick Blake Jr.

Thank you, Minister. Notice is given. Oral questions. Member for Kam Lake.

Caitlin Cleveland

Caitlin Cleveland Kam Lake

Thank you very much, Mr. Speaker. Mr. Speaker, today I have questions for the Minister responsible for NTPC about greening -- I know, it's a shocker -- about greening our electricity mix without making rates less affordable than they already are.

One of the GNWT's main policy tools to green the electricity mix is net metering. But that policy isn't sustainable for ratepayers or for our 2030 Energy Strategy goals. A 2021 policy review found that by 2030, electricity utilities will be losing up to $2.7 million per year on net metering, and that's without going beyond the 20 percent cap on renewables. That policy review made five recommendations. I'm not aware of what, if any, the GNWT has done in response to the review in the last two years.

So my question for the Minister is, can the Minister tell this House whether she's been briefed on the findings and recommendations of the report and what the department is doing in response? Thank you.

The Speaker

The Speaker Frederick Blake Jr.

Thank you, Member for Kam Lake. Would the Member for NTPC please stand up.

Diane Archie

Diane Archie Inuvik Boot Lake

Again, Mr. Speaker? So I do want to note, Mr. Speaker, in 2020-2021, Infrastructure commissioned and released three independent studies to be able to look at the policy options to develop more renewable power in remote communities and in the hydro zones while establishing electricity rates and ensuring grid reliability. These studies -- three things: Assess the maximum limits of renewable power in thermal communities. It also explored how the Northwest Territories could generate additional revenues from excess power. And looked at options to contain rate inflation from the current net metering and self-generation policy.

Mr. Speaker, in the 2022-2025 Energy Action Plan that was just released here in December, the GNWT committed to provide direction to the public utility board to make changes to the current policy framework so that we could support renewable power built without compromising grid reliability and impacting electricity rates. Thank you, Mr. Speaker.

Caitlin Cleveland

Caitlin Cleveland Kam Lake

Thank you, Mr. Speaker. Mr. Speaker, the report recommended that within one or two years the GNWT reduce the credit for renewable generation and allow utilities to increase their fixed charges by 5 percent. Is the GNWT considering reducing the credit for renewable generation and will the GNWT consult before making such changes? Thank you.

Diane Archie

Diane Archie Inuvik Boot Lake

Thank you, Mr. Speaker. As mentioned, we committed in the new energy action plan to provide direction to the public utility board to make changes to this current policy framework so that we can support renewable power build out without compromising grid reliability and impact electricity rates. I'm sorry, I repeated myself; I think that's really important to say.

Regarding the credit for the renewable energy, it's important to remember that utilities operate within a very complex and regulated environment. The GNWT cannot unilaterally decide to change rates like the one establishing the compensation received for renewable generation. It is up to the public utilities board to decide following a detailed process of investigation and public consultation. Thank you, Mr. Speaker.

Caitlin Cleveland

Caitlin Cleveland Kam Lake

Yeah, thank you, Mr. Speaker. Mr. Speaker, I'm aware of Indigenous-led renewable energy projects that can't go ahead because of this 20 percent cap that NTPC currently has. While our energy strategy commits us to reduce emissions from diesel power generation in communities by 18 kilotons every year by 2030, we are turning down proposals for renewable projects.

So can the Minister commit to make changes to the policy so that NTPC will work with any business or community that bring forward green energy projects even if they are above the 20 percent cap? Thank you.

Diane Archie

Diane Archie Inuvik Boot Lake

Thank you, Mr. Speaker. This is exactly why we're actively looking at this issue and why we made a commitment, not only to assess it but to provide an update direction to the public utility board on this matter. Thank you, Mr. Speaker.