The government, in its proposal about dividing ownership of the North's utility, recommended a 60-40 split for a new western territory and Nunavut respectively.

But the coalition wants ownership of the utility based on net earnings contributed by each territory. According to government figures, that would mean a 68 per cent ownership by a new western territory government.

Roland spoke Friday before a standing committee on government operations about the coalition's position.

The coalition, acting for western interests, draws its members from the Aboriginal Summit, the legislative assembly, the NWT Chamber of Commerce and NWT Association of Municipalities.

Government bases the 60 per cent and 40 per cent figures on a combination of splitting the original capital of $43 million equally and dividing up 10 year's profit of $55.8 million.

Both governments, west and east, should share equally in the $43 million "windfall" government said.

Ten years ago, the federal government sold its Northern Canada Power Commission shares to the GNWT for $1.

At that time, $43 million in original equity -- the difference between $98 million actual debt and $53 million negotiated debt -- was absorbed by the federal government and gifted to the GNWT.

If the original equity were to be split on a per capital basis, "the West rightfully deserves more than 50 per cent," Roland, MLA for Inuvik, said.

Roland said 1993 census figures showed 63 per cent of NWT residents lived in the West.

On profit, government calculates the West generated 69 per cent of the profit, or $38.3 million, and Nunavut generated 31 per cent, or $17.5 million.

The $21.5 million plus $38.3 million represents 60 per cent of the total, 98.9 million.

Roland also said the coalition is suggesting Power Corp. be set up with two operating divisions.

Two profit centres will ensure no cross-subsidization, he said.

And if the corporation were to be divided at a future date, having two profit centres would make it easier, he said.

The coalition is also proposing a termination clause which includes a detailed plan describing how the corporation would be divided if the proposed partnership fails.

The legislation should not receive third and final reading until the GNWT and the interim commissioner's office have agreed to the unanimous shareholders agreement, Roland said.

"We see this (all the proposals) as best for the West. We are looking out for western interests."

Under proposed GNWT legislation, Power Corp. will continue as one utility after April 1, 1999 but be owned by two governments.

The creation of two utilities would raise rates five and seven per cent in the West and east respectively, Charles Dent, minister responsible for the utility, said.