Mixed emotions over break-up of Power Corp
Kerry McCluskey
Northern News Services
Iqaluit (Dec 13/99) - For Tony Manik, the decision to divide the Northwest Territories Power Corporation into two separate entities was similar to the decision behind the birth of Nunavut.
 Axel Have, the Northwest Territories Power Corporation's director of operations in Nunavut, said the decision to split the corporation was a good one for the East. -- (Kerry McCluskey/NNSL photo) |
"It's only right that Nunavut has its own power corporation," said Manik, Resolute Bay's plant superintendent.
"Now we can do things inside Nunavut. To have it outside, someone else was making the decisions for you even though you have your own territory," he explained.
Ditto, said Chris Cousins, Manik's counterpart in Kimmirut.
"It's going to be good because all the decision-making will be done in (Nunavut) instead of Hay River," said Cousins.
While he expressed some concern about the uncertainty of the future -- including what the rates will be like under NPC -- Cousins remained optimistic about a more independent power corporation.
Likewise for the upper echelons of management, where positive responses have been coming from since the Nov. 24 announcement was made by Ed Picco, the minister responsible for the Power Corp.
Axel Have, NTPC's director of operations in Nunavut, applauded the move and said it was welcome news following the doubt that surrounded the negotiations and the future of the Power Corp. for the
last three years. Having a concrete direction to follow he said, would improve service delivery.
In particular, Have noted the savings associated with running NPC after March 31, 2001, the date the transition agreement expires and the new utility company becomes official.
"The headquarters costs are currently somewhere around $4.68 million a year or roughly $19,500 everyday. That's Nunavut's share," said Have.
Those expenditures will be significantly reduced when the main office moves to Nunavut. Headquarters' staff numbers will be drastically decreased -- from 95 in Hay River to about 27-30 people in Nunavut -- and a closer office means a quicker decision-making process that requires less money to be spent.
Have also noted a need to change the way Nunavummiut pay for their power. Currently operating on a community-based rate structure, he said an across-the- board payment system would simplify matters.
"If other communities pay a little more, communities like Clyde River will pay a little less. A postage stamp rate simplifies things and avoids problems," said Have, adding that once NPC was fully up and running, the corporation's priority would be to develop such a system.
He also noted that by eliminating the public utilities board, and handing their responsibilities over to the GN, the territory could save up another (approximate) $700,000 annually.
All told, the streamlined Nunavut-based company will likely reduce the bills ratepayers receive each month.
"I actually foresee down the road that we might end up with slightly lower rates. We'll make decisions which are much more compatible to what the real needs are."
Have did express some sadness about dividing the corporation, but he hoped NTPC would win the contract to help the new company get off the ground.
That's also something NTPC president Leon Courneya wants to see. Not only will it stave off the inevitable downsize he faces in 2001, but in that he is the current service provider, Courneya said NTPC is the best corporation for the job.
"We know the employees, the people, the procedures, the conditions of the plants, everything that's involved. We also have experience in getting a head office set up because we did it ourselves 10 years ago," said Courneya, referring to the creation of NTPC in 1989.
"We can obviously do the services because we're doing them now," he said.
Picco is expected to make the decision concerning the systems manager, the location of the head office and the name of the new chief executive officer sometime over the coming weeks.
