Nathan VanderKlippe
Northern News Services

Yellowknife (Oct 09/02) - The territorial government has told the Northwest Territories Power Corp. (NTPC) to withdraw its application for a flat rate for power.

Premier Stephen Kakfwi: "We own the power corporation and we run it in the best interests of the public ... "-

Premier Stephen Kakfwi told Yellowknifer Tuesday that cabinet decided in early August that the power corporation would not be allowed to petition small communities on its flat rate proposal, which would have seen all residential users in the NWT pay 23.21 cents per kilowatt of power.

"Cabinet was very specific that all consultation and work towards a single rate zone not proceed any further until the energy strategy is completed and public, and that's going to be a little while yet," he said.

"We own the power corporation and we run it in the best interests of the public, so the power corporation is obliged to listen to the shareholder."

The cabinet position will be outlined in a letter to the power corporation. That letter was being drafted yesterday.

Gord Stewart, chair of the NTPC board of directors, said he was "shocked" by Kakfwi's announcement.

"I hadn't heard that," he said. "Obviously, we wouldn't have filed for one rate unless we thought we had the support of the shareholder."

Stewart said he had spoken with Finance Minister Joe Handley, the minister responsible for NTPC, and had understood the territorial government supported the flat rate.

Different interpretations

Handley said he and the premier had different interpretations of the cabinet decision, and that he thought the power corporation should be allowed to determine its own rate structures.

"I believe that they're (NTPC) putting this forward because they feel it is the best deal for the majority of customers ... so there probably is a fair bit of disappointment there," he said.

But, he added, "he's the premier, he's overruled me on it and that's it."

Stewart said he would have to review his files to see if the power corporation was told about the August decision.

Kakfwi said MLAs were "surprised" by the flat rate application, submitted to the Public Utilities Board Sept. 6.

Plan provoked backlash

Since being made public, the flat rate idea drew a strong public backlash. The PUB, which had promised a decision by early next year, has already processed 39 applications for intervenor status -- the most ever.

Intervenors can register formal opinions with the utilities board during the hearing process.

In an embarrassing twist for the GNWT, one of the registered intervenors was a member of cabinet, Health Minister Michael Miltenberger. Other politicians, including Frame Lake MLA Charles Dent and city Coun. Robert Hawkins had also registered.

The cabinet move was applauded by Yellowknife Mayor Gord Van Tighem, who said, "good -- there hasn't been a lot of support for it anywhere."

"There has to be more of a reason to change a rate structure than just to change a rate structure. So if they do studies that demonstrate that there's some real long-term benefits and specific long-term benefits, then people can support it."

Yellowknife, Fort Smith and Hay River had already banded together to pay for legal counsel in opposing the flat rate. Leo Burgess, the lawyer hired by the municipalities, called the flat rate "unfair."

"No one else does it that way -- no one else in North America that I'm aware of," he said.

Environmental critics, who said a flat rate encouraged consumption in diesel-powered communities, also lauded the move.

"It was like increasing the price of milk so you can afford to buy cigarettes," said Jack Van Camp, a Fort Smith-based environmentalist.

"They were sending totally the wrong signal."

Handley said the power corporation will likely have to resubmit a community-based rate application, which would tailor increases based on the cost of delivering power in each community.

But, he warned, a flat rate is not dead.

"No doubt in my mind it will come up again. It certainly has merit, and there could be lots of debate about any kind of system you put in place."