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MLAs want changes to Power Corp

Herb Mathisen
Northern News Services
Published Monday, October 27, 2008

SOMBA K'E/YELLOWKNIFE - With power rates set to increase effective Nov. 1, the Northwest Territories Power Corporation was the centre of attention in the legislative assembly, Thursday.

The corporation currently has a general rate application in front of the utility board to increase power rates across the territory, and MLAs say their constituents are concerned about it.

So one by one, they threw their ideas about how to improve the corporation at the minister responsible for it, Floyd Roland.

Jackie Jacobson, MLA for Nunakput, wanted the government to raise the territorial subsidy level - where residents outside Yellowknife pay the capital city's base rate for the first 700 kilowatt hours, then their community rate for anything exceeding it each month - to 1,000 kilowatt hours.

Jacobson said in his high-North constituency, furnaces and lights need to be running longer due to the shorter days and longer winter season.

Mackenzie Delta MLA, David Krutko argued the government scrap subsidies and implement levelized rates, which would bring lower rates up, and higher rates down to average out.

"All diesel communities will be on one rate system; the hydro communities would be on a one rate system," he said, estimating the government would save $9 million on the subsidies they presently pay out.

Norman Yakeleya, MLA for Sahtu, said the government should privatize the corporation to "give the power back to the people."

In the interim, he asked Roland to provide metre readers to let customers know how close they were to the 700 kilowatt hour subsidy level.

Kevin Menicoche, MLA for Nahendeh, spoke about the impact increased energy costs were having on his constituents. He said residents in Nahendeh, on the average, were paying 15 per cent of their income on power and to heat their homes.

For this reason, he asked Roland to withdraw the corporation's rate application.

Roland said he would not, as the application is based upon money already spent by the government.

The government paid for this year's fuel resupply when oil prices were at their peak. The proposed rate increase is based upon those numbers, he said, not where the present price of oil is.

Dave Ramsay, MLA for Kam Lake, said residents of the territory will find it hard to swallow that there could be an increase in power rates while oil prices are less than half of what they were mere months ago.

Ramsay also took the minister to task, insisting he cease bonuses paid to corporation senior management.

These bonuses amounted to about $600,000 last year, said Ramsay.

"Why do we allow the Northwest Territories Power Corporation to continue to pay out bonuses to senior management when many in our communities struggle every month to pay our bills?" he asked.

Roland said the utilities board recommended bonuses be reduced last time an application was put forward by the corporation. He said, however, since senior management in other departments collect bonuses, ridding the power corporation of them would affect their competitiveness as an employer.

Roland consistently referred back to a review being done by the ministers' energy co-ordinating committee, which was leaving "no stone unturned" for solutions to restructure the corporation to better serve the territory's residents.

In an interview, Roland acknowledged the concern of NWT residents.

"People in the North are no longer accepting that this is just the way it has to happen," he said, referring to the increases in rates.

Roland said he hoped the review would be completed before Christmas and regular MLAs would get the chance to offer their suggestions to it.