SOMBA K'E/YELLOWKNIFE - All eight city councillors and Mayor Gord Van Tighem responded to the first question Yellowknifer put to them ahead of the March 14 referendum to borrow up to $49 million to fund the city district energy system.

The question and their condensed responses are below. Their full responses can be found at Yellowknifer's special Yk district energy web page.

Just go to nnsl.com/yellowknifer and follow the link. If you would like to ask city council a question related to the city's district energy proposal, please e-mail it to editorial@nnsl.com. See page 9 for more commentary.

Question: Lay out the benefits and risks to this project from your point of view

Mayor Gord Van Tighem

In 2008 there was a regional fuel oil shortage and for a couple of months suppliers could not get loads of furnace oil, let alone the fuel to drive trucks to Yellowknife. Last fall we were reminded of the frailty of our supply system when gas inventories were exhausted in less than a week. Forecasts on future availability and price vary.

As a remote community, a recognized "sustainable community," we need to carefully consider the options available to us for the benefit of our children and their children. We appear to have a readily available local resource in underground heat and the Department of Environment and Natural Resources has completed a study to promote a more local supply of biomass (wood pellets from the South Slave). Let's look to local resources, more affordable sources, control over supply and greater price certainty for our future by approving the further evaluation of these enticing options presented under the Con Mine District Heating proposal.

Bob Brooks

Benefits:

* Will help to lower heating costs in Yellowknife.

* Will inject $60 million of economic development activity within the city, and provide a major project for local businesses and contractors.

* Will cause the city to receive $14.1 million from the federal government toward the establishment of this community energy project.

* Will help us reduce a considerable amount of greenhouse gas emissions.

* Authorizing the city to borrow up to $49 million (basically guaranteeing a loan) gives the project the credibility it needs to leverage other funding sources and partnerships.

* Because of the "switching" ability, to change fuel sources, this project will be flexible enough to adapt to: geothermal, biomass, hydro, or oil (or any combination thereof) - whatever system will provide the most benefit to the residents of Yellowknife.

Risks:

* In my mind, the biggest risk is if we do not take advantage of this timely opportunity.

* There is always a risk when governments are asked to back-stop or guarantee a major project.

Paul Falvo

Benefits I see are primarily economic. We all want Yellowknife to be more affordable. Harnessing local energy - instead of sending our money south - is one step toward making it more affordable to live and work here.

Fuel prices continue to rise. We have little or no control over fuel prices. This would be a locally-owned utility.

Local economy stands to benefit from millions of dollars in construction jobs and economic activity - and in reduction of fuel money being sent south.

Reduction in greenhouse gas emissions, and improved air quality are a collateral benefit. So too is the opportunity to encourage downtown infill and development.

Need to ensure as much construction money as possible is spent locally, to benefit Northern companies and residents.

My support is not unreserved. There is always the "what if." But, heat transfer and insulated pipes are proven technology. There is more to lose by not taking advantage of the opportunity to save 7.5 million litres of fuel annually.

David Wind

This would be a way for these building owners to reduce the carbon dioxide they currently emit as a result of burning fossil fuels for this purpose, mainly heating oil. The building owners (but not Yellowknife residents in general) will also benefit as a result of no longer being dependent on the price of heating oil which is presumed to remain highly volatile and substantially higher than today's price. The project also anticipates that some form of compensation will be necessary for the cost of the boilers and associated heating equipment currently installed in the selected buildings.

As for the risks, they are primarily born by all Yellowknife taxpayers, including renters whose share of property taxes is included in the rent they pay. Taxpayers are being asked to provide a financial backstop for the borrowing by the city that is necessary to finance development and construction.

Shelagh Montgomery

Benefits: Based on the information I have received, and questions I have asked, I am confident in stating there are many benefits to this project; environmental, social and economic. Some of these are listed below.

The project will be funded by federal grants, private investment, and revenue from a new locally-owned utility. It will not be funded by municipal taxes.

It is estimated that 6.7 million litres of diesel will be displaced by the 2015 build-out. That represents a huge reduction in greenhouse gas emissions, better air quality, and money spent on a local energy source rather than a majority of dollars going to southern corporations.

Risks: Based on all the solid analysis already undertaken by the city to determine the feasibility of the Con Mine Community Energy System, the most significant risk associated with the project is not going ahead with it. The status quo is continuing to heat with diesel and that will only become more expensive.

Cory Vanthuyne

Financial and Economic Benefits:

* Helps protects Yellowknife from volatile fuel prices.

* May inject up to $25-plus million into the local economy

* Can create up to 300 person-years of construction work.

* Creates over 100 indirect, induced and related jobs.

* Supports local plans for hydro-electric expansion.

* Likely to protect Yellowknife from future carbon penalties.

* May lower biomass prices due to economies of scale.

Ecological and environmental benefits:

* Improves air quality; reduces Yellowknife greenhouse gases by 5 per cent.

* Reduces greenhouse gases from connected buildings by 95 per cent.

* Reduces carbon (GHG) emissions by 17,000 tonnes a year.

* Reduces local requirements for fuel oil by nearly seven million litres a year.

Social and community benefits:

* Puts Yellowknife in control of its own locally-available, renewable energy source.

* Keeps Yellowknife affordable by supporting the availability of affordable housing.

* Promotes downtown redevelopment.

* Celebrates the local mining legacy and heritage.

* Boosts Yellowknife's profile as a great place to live.

Mark Heyck

Economically, the Community Energy System (CES) would keep money in the local economy by reducing our dependence on fuel oil from elsewhere. It would also help to reduce the volatility in the price of energy that Yellowknife experiences. As the past few weeks have shown, we are highly susceptible to shocks in the price of oil caused by events in far away places.

Socially, the CES could help stabilize the cost of living by moving us away from the volatility of oil prices.

Environmentally, the CES could reduce our annual oil consumption by nearly seven million litres, which would improve our air quality and reduce our greenhouse gas emissions by approximately 17,000 tonnes, the equivalent of taking half of the cars off Yellowknife's roads every year.

The risks inherent in a project like this can be mitigated through careful planning and due diligence, and if there is too much potential risk remaining when it comes time for city council to make a final decision on the project, I don't believe the project would be approved.

Amanda Mallon

Economic benefits:

Increase in construction jobs directly related to building and installing the District Energy System (DES); increase in jobs related to maintenance and supplies. Specifically - the DES will add 26-million dollars into our local economy during construction and installation.

Technological benefits:

Relying on tested technology - there are Community Energy Systems in Canada and throughout northern Europe. The city is able to look at other systems in place and adapt the technology and information specific for our location. Some examples that we can look to are Springhill, Nova Scotia where a manufacturing facility has been recovering floodwater in abandoned mines to provide heating and cooling since 1988.

Considering the risks:

If construction costs rise beyond a point which would make the business case not viable, the city will not proceed with the project. In the latest information session with Professor Dixon, we went through several scenario-setting exercises to examine basic issues that could change construction and/or operating costs.

Lydia Bardak

The benefits of Con Mine Energy, I think, are:

That no tax dollars will be used to fund it and we are already able to access a federal grant of $14 million - the city has good experience in leveraging money.

That it is a flexible system with the ability to switch a variety of fuel sources and that it will protect us from the volatility of heating oil prices.

That it will reduce our carbon emissions.

That it supports our need for affordable housing.

And that it turns a closed mine into a community asset.