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NWT - The Territorial Government will do extensive research to determine the reasons for high cost of energy in Northern communities.

During his Minister's statement Monday Premier Floyd Roland, Minister Responsible for Northwest Territories Power Corporation (NTPC) announced two separate reviews of electricity regulation, rates and power subsidy programs – one on the Power Corp., the other on the proposal for a partnership with ATCO on the development and delivery of power in the NWT.

Premier Floyd Roland said this review will help to improve energy delivery in the NWT. - NNSL file photo - NNSL file photo

"Our government has made an unprecedented financial commitment to bring about real change and reduce the cost of living, especially in our remote communities," Roland said.

The panel will look at NTPC's financial statements, Public Utilities Board (PUB) rate applications and the overall general operations of the power corporation. The panel will also meet with the PUB.

"A comparison of costs, rates and practises will be done between the NTPC and Northland Utilities Limited so that residents can obtain a fair comparison of community rates and the reasons for the differences," he said. Roland added the review will assess the "opportunities and implications" of going to one utility provider, whether it be public or private.

Chris Buist, president of the Norman Wells Chamber of Commerce, said he thinks the review is good, but doesn't see any big changes coming to how they get power in their community unless they start looking to alternative energy sources.

"I don't see them making huge changes to how power is delivered in Norman Wells," Buist said. "Unless they're looking to go to greener solutions, the review isn't going to change anything for our businesses or residents."

Weledeh MLA Bob Bromley asked Premier Floyd Roland to include an alternative energy representative on the panel to allow for potential movement toward more eco-friendly modes of energy generation.

The electricity review panel was appointed Monday to facilitate discussion with residents, aboriginal government and community stakeholders on the current issues regarding electricity programs. Mark Cleveland, Gerry Forrest and Doug Matthews were appointed by Bob McLeod, Minister of Industry, Tourism and Investment.

Cleveland has more than 30 years of public policy experience, Forrest nearly four decades of experience in public policy and energy regulation and Matthews more than 30 years in Northern resource development.

"We wanted a good cross section of people that had experience in the industry and knowledge of the North and with the three we have all that," he said.

McLeod said he hopes to have a preliminary report completed as early as May, with a final report coming in the summer and implementation of the report sometime in the fall. McLeod said expectations are to get an idea of what residents in the North want and for the Minister, it comes down to fairness.

"Is it fair for someone in Yellowknife to pay a lower rate when someone in Colville Lake is paying $2.27 kilowatts per hour," he said. "We're hoping we can find a way to reduce costs and also have a good idea of what the expectations of the people are of community ownership and distribution," he said. "We want some idea of what kind of regulation they want to see. It all comes down to what I think of as question of fairness."

Kam Lake MLA Dave Ramsay said it's good the voices of regular MLAs are being heard.

"It's timely," Ramsay said. "Residents and MLAs are demanding something be done about this escalating problem. It's nice to see them listening to us for a change."

Roland said the review of the ATCO proposal, limited in details at this point, will help the GNWT understand how a merged and privatized utility would operate in the NWT, including changes from the way the 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," said Roland.

McLeod said the review would still be helpful should the ATCO proposal to partner with the NWT Power Corporation be approved.

"If it's sold, I expect we'll have to look at how we provide oversight," he said, adding the work would also help them figure out how the government would monitor electricity rates.

Ramsay said he has issues with the review process for the ATCO proposal.

"We should have more expertise on the review committee," he said, adding there needs to be people on the committee with experience. "I wouldn't want us to be exposing ourselves anywhere. They're in the business to make money and we're in the business to hopefully get power to people in small communities at a lower price."

When ATCO went into partnership with the Yukon Electrical Company, power rates didn't go down Ramsay said.

"Power rates have gone so high people can't afford to pay their bills," Ramsay said. "We've got to keep our eye on the prize and it's to get reprieve on the power rates they are paying. I'm in favour of an approach that gives relief to the people."

- With files from Herb Mathisen