HAY RIVER - The Town of Hay River is once again flirting with the idea of buying and operating the electrical distribution system in the community.

Mayor Kelly Schofield: Hay River town council to weigh the idea of buying the electrical distribution system in the community. - NNSL file photo

"The opinion of council is that we definitely want to look at this," said Mayor Kelly Schofield. "There may be a cost savings for Hay River residents down the road. Of course, there wouldn't be immediately because there would be the purchasing price and everything like that."

The idea came up at council's committee of the whole meeting on Nov. 8, but Schofield said it was already being discussed among councillors.

"Maybe it's a great idea in some regards, but in other regards there are some setbacks," Schofield said. "So it's definitely a discussion item that we're going to have to look at and weigh heavily."

Electricity is currently distributed in the community by Northland Utilities (NWT) Ltd., which buys power produced at the Taltson River hydroelectric site from the Northwest Territories Power Corporation.

At its Nov. 22 meeting, council will consider setting up a committee to study the pros and cons of the purchase idea, such as how much it would cost and the benefits to residents.

"If we were to decide we wanted to do this, there would be a plebiscite held to go out to public to see if the public wants to do this, as well," Schofield said.

Duane Morgan, a spokesperson for Northland Utilities, said an analysis in 2001 placed the sale price at that time at about $17 million to completely change the ownership structure.

Today's price would probably be somewhere "north of $20 million," he said.

Morgan did not have much reaction to the town's discussion about purchasing the service, other than saying the municipality routinely reviews all its contracts.

"They're doing their due diligence," he said.

Schofield said a takeover could mean lower rates for residents or lower taxes because the town would receive supplementary income from the sale of power.

In addition, he said it might make Hay River more sustainable and independent, and less reliant on funding from government agencies.

The franchise agreement under which Northland Utilities distributes power in Hay River expires at the end of November next year and can be renewed for another five years.

Schofield said previous town councils have discussed buying the service.

"Every time it's come up, the council has always said just do another five-year contract," he said.

However, he has the sense the current council is more serious about the idea.

"I know this council is trying to be more diligent in its expenditure and being very careful with our expenditures," he said. "We're looking at ways to save our residents money. We're looking at ways for the town to make more money. So this is definitely a heavier discussion item than it has been in past years, I believe."

No discussions have yet taken place with Northland Utilities or its parent company, ATCO Electric. Northland Utilities has been responsible for distributing electricity in Hay River for 59 years.

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