Concern over proposal to abolish Public Utilities Board
Malcolm Gorrill
Northern News Services
Inuvik (Feb 02/01) - A proposal to abolish the Public Utilities Board (PUB) sparked discussion during an information meeting here Monday.
A few members of the public turned out at Town Hall to hear a presentation by David Morrison, a consultant who helped draft a report for the Government of the Northwest Territories (GNWT).
The report, A Review of Electrical Generation, Transmission and Distribution in the NWT, was released Nov. 30. Morrison's visit came during the last week of consultation on the report.
Morrison said one recommendation is to abolish the Public Utilities Board as part of efforts to simplify the regulatory process.
"It took us a very short period of time to determine the regulatory process in the North is complex and very, very costly," Morrison said.
He said a regulatory formula used in British Columbia and four other provinces could be applied here, thus eliminating the need for the PUB.
As well, an utility ombudsman could deal with complaints currently handled by the PUB.
Morrison said that cabinet in effect would be the regulator.
Derek Lindsay expressed concern about eliminating the PUB, and after the meeting Lyle Neis agreed.
"Any consumer should be a little concerned," Neis said, pointing out that consumers might not have much choice in the event of a proposed rate hike.
In response to concerns about how independent an ombudsman appointed by the GNWT could be, Morrison said that ombudsman can be quite independent. He pointed out that the chair of the PUB is appointed by government.
Division coming
Morrison explained that the Northwest Territories Power Corp. (NTPC) will be quite different after the day of division on April 1, when Nunavut will have its own power utility.
NTPC will go from 52 plants to 26, and the percentage of hydro production will jump from 58 per cent to 77.
Morrison pointed out that as it stands now, after division NTPC's 26 plants will each have their own rate plan. One recommendation in the report is to establish two rates throughout the NWT, a hydro rate and one other.
Morrison said he wouldn't be opposed to establishing just one rate, but that the subsidy program can stay intact with two.
Under the program, residents in all communities are subsidized on Yellowknife's residential level, up to the first 700 kilowatt hours a month.
Mayor Peter Clarkson asked whether Inuvik would be at a disadvantage in a two-rate system, as it is on natural gas.
Morrison said it would be hard to say, but that natural gas regulations were one thing he expected the PUB would address before dissolving.
Morrison said the subsidy program and NTPC's dividend program are too closely linked. He said that last year NTPC paid out 60 per cent of its dividends to pay for the subsidy program.
Cap profit grab
He said this makes it hard for NTPC to function, and that the GNWT should not be allowed to take more than 55 per cent of the power corp.'s profits over a rolling three-year average.
Another recommendation is to abolish the NWT Power Corp. Act and to set up NTPC as a private company under the Canada Business Corporations Act.
Morrison said the report is currently before cabinet, and that anyone who wishes to comment on it should contact PUB Minister Roger Allen or Premier Stephen Kakfwi.
