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NORTHWEST TERRITORIES
The mayor of Norman Wells says he won't raise taxes to pay for a $36.6 million project to switch the town's heating system from natural gas to a wood pellet centralized heating system.

"In no way will I ask the taxpayers of this town to pay more taxes," Dudley Johnson said. "We must fund this from other sources."

Johnson said six months after he became mayor in 2009, representatives from Imperial Oil, which provides the community's natural gas, sent him a letter telling him Norman Wells would need to find a new heating source by 2014.

Johnson said previous councils had also been aware of the situation.

"I got a letter from Imperial saying we have until 2013 for business to be off and 2014 for all residents to be off," he said. "They were running out of natural gas."

Johnson said the new biomass system will deliver heat by using pellets or wood bricks to heat glycol, which will run through the community's existing utilidor system.

The utilidor system will also be expanded to service residences in the town proper not currently connected to the system, which Johnson said would be covered under the project's cost.

"It means that people now on trucked water and pump-out sewer can connect to the utilidor," he said.

Johnson said residents are paying about $18.30 per cubic foot for natural gas. The new system would cost a little more than double that amount, but is still cheaper than the alternatives, diesel or propane.

"The advantage of this system is its much cheaper in fuel costs," he said. "It's 2.5 what we're paying now, but diesel is four and five times more expensive."

He said the work involved in hooking a home up to the system is minimal.

"The second advantage to this is it's easily convertible," he said.

It can also be switched back to natural gas or another fuel source down the road, he added.

For homes that already heat with diesel or propane, Johnson said they can also be serviced by the new system and use their existing system as a back up.

"We can deliver it to your house at a lower rate," he said. "We're not taking out furnaces. We're not removing stuff."

He said pellets or bricks could be shipped in, but there are companies in the territory looking to start up wood pellet mills to service the industry, such as a small scale project underway at the former location of the Checkpoint rest station at the junction of the Mackenzie Highway and the Liard Trail. Another is expected to open in Enterprise next year.

"There are local people here who are interested in setting up that type of business," Johnson said.

In August, NDP MP Olivia Chow visited Norman Wells. After her visit, she issued a press release deploring the Conservative government for taking substantial oil revenues from Norman Wells without providing infrastructure funds for the community.

"The Conservative government has been reaping tens of millions of dollars in royalties from oil extraction near Norman Wells," Chow stated in the release. "Why won't the Harper Conservatives use those royalties to give back to this community in dire need for help? I am calling today on Stephen Harper to start working right away with the community leaders of Norman Wells and to support their efforts in addressing the pressing energy crisis."

Johnson said because of this and other support, he is confident Norman Wells will be able to secure full funding for the project without raising taxes.

In 2010, the territory announced its NWT Biomass Strategy to promote biomass heating and energy. Johnson said the town is also applying for funding through the Federation of Canadian Municipalities' Green Municipal Fund, as well as the PP3 Fund through the federal Public-Private Partnerships Canada.

"We are confident, both myself and our consultant, that we will have no problem getting the funds for this project," he said. "I think this is the best solution, the most economical, the most feasible and the most viable," he said.

Associated Engineering is the consulting company working on the project.

Johnson said a transition team has been formed to help keep the project moving.

"Imperial has put us behind the gun, we have fired the gun, now we want to keep that gun firing," he said.

A public meeting was held on Sept. 12.

Johnson, who is running for mayor again in October, said he feels strongly enough about the project to pin his re-election on it.

"I stated quite clearly, I'm running for re-election," he said. "If you don't want this project, then defeat me."

He said the upcoming election won't silence his support for the project.

"I don't believe it should become a lame duck council just because of an election," he said. "Neither do I believe in putting this problem on a new council."

Johnson said the final decision could be made in December.

"We're gong to make sure everything is in place for December," he said.

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