PUB role questioned
Public Utilities Board has independence: minister
Kirsten Fenn
Northern News Services
Wednesday, June 7, 2017
SOMBA K'E/YELLOWKNIFE
The purpose of the Public Utilities Board was called into question again Monday.
The issue was raised by Frame Lake MLA Kevin O'Reilly during a committee meeting about a policy directive the GNWT issued to the independent, quasi-judicial agency earlier this year.
O'Reilly asked Glen Abernethy, the minister responsible for the board, why the board exists if the GNWT is going to keep suggesting what it should do.
The board has been pushing the power corporation to equalize cost recovery levels in NWT communities, as some communities pay as little as 75 per cent of what it costs to provide power there. But the government fears sudden changes in power rates could cause rate shock and sharp increases in power bills. So it directed the board in February to limit increases to an additional one-per-cent change annually.
"The Public Utilities Board does have the ability to interpret this (directive) as they see fit and they could interpret it differently," said Abernethy. "They do still have a significant amount of independence."
Abernethy suggested the GNWT's costs would have decreased while residents' costs would have gone up if the directive wasn't issued.
O'Reilly wasn't satisfied with the answer, asking the same question several times before finally concluding: "No, I tried," when asked if he had any further questions or comments.
This isn't the first time the Public Utilities Board has been in the hot seat.
In February, Yellowknife North MLA Cory Vanthuyne questioned Louis Sebert, minister responsible for the NWT Power Corporation, in the legislative assembly about whether he believes the board has any role in setting power rates at all.
His comment came after the minister confidently suggested power rates would be decreasing in Hay River, despite the fact rate changes are subject to the discretion of the Public Utilities Board.
Less than a month later, O'Reilly expressed frustration over the policy directive and asked what the government's plan is for the board's future.
"There was very prescriptive direction in terms of how the Public Utilities Board is to deal with electricity rates that really limit the board's ability to exercise its jurisdiction," he said, adding MLAs' advice was not sought on the directive, something he raised again at Monday's meeting.
According to Abernethy, the issue came to cabinet on Feb. 21 and a committee of MLAs was informed about the directive Feb. 23, one day before it was given to the utilities board.
"In the future I would obviously like to provide more heads up to my colleagues," said Abernethy.
