Derek Neary
Northern News Services

Fort Simpson (Jun 30/00) - Lower-cost power and guaranteed reliability were promised by Fort Simpson's potential new power-supply partner last week.

Jupiter Power International Inc. finally became more than just a name when representatives arrived to present details of their proposal to about 50 residents at last Tuesday's public meeting.

Power Corp. officials were also in the audience, taking notes.

Dave Lewis, president of Jupiter Power, said his company plans to initially install three diesel-fuelled, modular power generating units -- Lewis compared them visually to "shipping containers."

They are capable of producing 2.5 megawatts of energy, while the village's peak requirement is 1.5 megawatts, he said. One of the three units would be a back-up unit in case of mechanical problems. With backing from Finning/Caterpillar, another unit could be flown into the community in a worst case scenario -- all at no extra cost to the customer, he said.

"We are guaranteeing 100 per cent reliability ... it's backed in writing," Lewis said, adding that his company would absorb any extraordinary costs for down-time.

Jupiter's cost to generate power was 25.5 cents per kilowatt hour (kw/h), based on a diesel price of 30 cents per litre, when they submitted their proposal. Since that time diesel prices have risen and the cost per kw/h would now be 28.5 cents, Lewis said.

He added the Power Corp.'s rate of 30 cents kw/h would also rise due to higher fuel costs. On the distributing side -- getting power into homes and businesses through lines and poles -- Jupiter's price is 19.3 cents kw/h compared to 25 cents kw/h for the Power Corp., he said.

The question of ownership, or a sale price for the Power Corp.'s distribution assets, has yet to be settled.

Long-term goal

The second phase of Jupiter's proposal, tentatively to be implemented in five years depending on demand, would involve the self-contained generating units being replaced by a large, fixed power plant.

Among the other upsides to the prospective partnership that Lewis emphasized was that the village would assume control of the power plant after the first power term -- expected to be 15 years.

The village would also receive the residual heat free of charge. Mayor Norm Prevost said that residual heat would be used to heat the rec centre and the remainder would be given to the schools. The village would also take over billing and administrative duties.

The modular power units would be less noisy than the current power plant, Lewis said. The proposed location for them is behind the steam plant, near Thomas Simpson school.

He also said Jupiter could readily sell off the diesel units and replace them with natural gas if and when that becomes viable in the community.

Job loss

The drawback of the Jupiter proposal, Lewis said, is that only four to six employees would be required as opposed to the nine Power Corp regional employees currently based in Fort Simpson.

"I think that's going to be one of the main issues," he said. "Is there going to be employment lost? Yes."

In its southeastern Asian plants, the only other place Jupiter currently operates, there has been a total of 22 hours of down-time over the past four years, according to Lewis.

A few members of the audience asked whether Jupiter's power modules are capable of functioning properly in the cold Northern climate. Dave Pinkman, Jupiter's chairman of the board, said the machines actually perform better under cold conditions than hot, humid ones. It was noted that similar power modules are on site at the Ekati diamond mine.

Another concern raised was whether the territorial power subsidy would still apply if Jupiter became the new partner.

Dennis Bevington, the village's energy consultant, said the subsidy should still be applicable. Prevost added, "If they (the GNWT) cancel it here, they'll cancel it everywhere else."

A plebiscite on the power issue is scheduled to be held during the third week in September, said Prevost.