Brokering a power deal

Derek Neary
Northern News Services

Fort Simpson (Mar 17/00) - The Village of Fort Simpson is well into its call for proposals process for a new power supplier, but Mayor Norm Prevost said an effort will be made to keep the Northwest Territories Power Corporation (NTPC) involved in the community.

"There's a chance for them to play a small part in something we're doing, but definitely not in the generation part," said Prevost, who had met with Jake Ootes, minister responsible for the Power Corporation on Thursday. "We're looking at options of how we could have a win-win situation here."

Prevost said the two sides have agreed to strike up a working committee consisting of himself, a village councillor, the village's energy consultants and NTPC director Gordon Stewart.

"If they (NTPC) want to work with us, like us, then we're open to some avenues. But if it's the old ways, then we're not even open to discussion," he said.

Regarding the future of the Power Corp.'s employees in Fort Simpson, he said it's hoped a regional office can be retained in the community. Fort Simpson workers who may no longer be required by NTPC, which has operated in the village for 50 years, will have the option of joining the new company, even if additional training is required, he suggested.

At a public meeting held last Wednesday, Prevost announced that village council will be selecting the new power supplier this month, but wanted to inform residents of the process before proceeding into negotiations with the yet-to-be-named company. Before any deal can be signed, it must be endorsed by a plebiscite open to all Fort Simpson residents and then approved by the Public Utilities Board.

Prevost said the village is in negotiations to acquire NTPC's assets, but if a satisfactory price cannot be reached, the matter will go to arbitration, he said.

During Wednesday's meeting, Ootes said several times he is "extremely concerned" about the prospect of any community going on its own because it affects the Power Corp. as a whole. He admitted he didn't have any answers on Wednesday evening, but emphasized that the Power Corp. is determined to re-address the situation in Fort Simpson.

He added that the need to streamline operations and run at optimum efficiency is imperative to NTPC. Chairman Gordon Stewart noted that 15 of the 17 corporation's vice-presidents have been eliminated.

A number of people, including Jim Antoine and Nick Sibbeston, advocated reconsidering NTPC as a candidate. A few community members also voiced their concern for local NTPC employees, who both sides admit are caught in the middle. After a few residents expressed concerns about the village becoming a partner in the power supply process, Prevost replied that the village only intends to assume control of the billing process and meter reading, not operating the power plant or generating revenue. A partnership would also allow village council and everyone else to better understand how power rates are set, he noted.

He added the Power Corp. also came up short in meeting each of the terms in the proposal call, whereas the short-listed companies either met or surpassed them. He did, however, credit the Power Corp. for its exemplary reliability and said that same standard would have to be met by its successor.