Electricity association head calls for fed help with energy infrastructure
Sergio Marchi says funding is part of Canada's nation-building mandate
John McFadden
Northern News Services
Wednesday, March 1, 2017
SOMBA K'E/YELLOWKNIFE
The president of the Canadian Electricity Association says the federal government has an obligation to upgrade the territory's aging infrastructure.
Sergio Marchi spoke to about 50 people at a Yellowknife Chamber of Commerce luncheon held at the Explorer Hotel on Feb. 14.
The Canadian Electricity Association represents power generating and distribution companies across the country.
"Canada was built on the principles of equality and opportunity, yet many Northern communities still lack access to safe and reliable power," Marchi told the audience.
"Despite enormous potential for clean energy, the vast majority of these communities rely on diesel to meet their basic energy needs. The cost of electricity in these regions is estimated to be more than 10 times higher per kilowatt hour than the Canadian average."
Marchi added that two of the biggest challenges facing the territory when it comes to providing affordable electricity is its vast geography and relatively small population, which leads to a small rate base.
He pointed out the Yukon uses hydro to generate 98 per cent of its power, while that figure drops to 75 per cent in the NWT.
"I view it as nation building," said Marchi. "We first electrified the cities, we then electrified the rural areas and then there are areas in the North ... but when it comes to not being connected to that grid ... we perhaps have not finished that job."
Representatives of the territorial government have talked to their federal counterparts about a project that would get the South Slave region connected to the North American power grid. The proposed Taltson hydro expansion is estimated to cost between $700 million and $995 million.
It is not clear whether the federal government is willing to help with the cost of the project.
The Taltson hydro plant is located about 64 kilometres north of Fort Smith on the Taltson River.
An upside to the Taltson project is the Northwest Territories Power Corp. could be in a position to sell power to Saskatchewan when and if it is completed.
NWT MP Michael McLeod said he agrees with Marchi that connecting the territory to the North American power grid is essential to bringing cheaper, more reliable power to the territory. He said as far as he knows, no formal request has ever been made by the territorial government to federally fund the project.
"We had a lot of positive discussion around it," McLeod said. "Whether they fund it - we have to wait until a formal submission is put in place and a business plan is analyzed."
However, as far a cabinet spokesperson Andrew Livingstone is concerned, a formal application has been made.
"The Pan-Canadian Framework on Climate Change, which the NWT has signed on to, outlines that the NWT and Canada will work in collaboration on potential partnership opportunities for clean growth, and the Taltson Expansion is mentioned," Livingstone stated in an e-mail.
"From the GNWT's perspective, we would consider this a formal request given the two governments' signatures on the document."
Former mayor Gord Van Tighem is chair of the Public Utilities Board, which regulates power rates across the NWT. He was among those listening to Marchi's speech. He said the Northern power system was created by the feds but they handed over the aging infrastructure to the territory in 1988.
He said the solar power project in the Sahtu community of Colville Lake is a good example of the NWT's utilization of renewable energy. The power plant, which opened last June at a cost of about $8 million, uses a hybrid of solar, battery and diesel to power the community of 160.
However, he said putting similar projects in other NWT communities will take deep pockets and considerable funding help from the federal government.
