NORTHWEST TERRITORIES
The territorial government is getting "very bullish" on its push to make the long-delayed power transmission grid between the North and South Slave a reality, Premier Bob McLeod said in the legislature on Oct. 17.

Connecting the electrical grid from the Taltson River Hydroelectric site seen here, located 64 km from Fort Smith, to the Snare Hydro System, located about 140 km northwest of Yellowknife, is the "biggest project we can start in the next two years," Premier Bob McLeod announced on Oct. 17. - NNSL file photo

"We see this hydro development and the transmission line as probably the biggest project that we can start in the next two years, or in the remaining life of this 17th assembly," he said.

This commitment came as the result of questions raised by Hay River South MLA Jane Groenewegen, who spoke about the project through the lens of devolution.

"We get excited over one or two jobs, but maybe we need to look at the big picture of what will devolution translate into in terms of development, such as the Taltson dam expansion," she told News/North.

In the past, the proposed Taltson River Hydroelectric expansion and transmission line ran into roadblocks from the federal government during the environmental assessment phase. Although the proposal was recommended for approval by the Mackenzie Valley Impact Review Board in August 2010, then-minister of Indian and Northern Affairs Canada John Duncan sent the proposal back in December of that year.

This is one example of how the regulatory process is "slanted towards the federal government," said Groenewegen, adding she is looking forward to seeing this change after devolution is implemented on April 1, 2014.

"If through devolution we're taking more of that process and putting it into the hands of Northerners, then in my way of thinking that would make for more efficient decisions made close to home," she said. "Devolution isn't just about those 175 extra jobs from Ottawa, it isn't just about the royalties from the resources, it is about that decision making which I want to see translate into more development."

Although the federal government will retain its control over the Mackenzie Valley Resource Management Act, territorial ministers will gain the power to sign off on projects approved by regulators.

The original hydro grid expansion project focused on sending power from the Taltson River Hydroelectric site to mines in the North Slave, taking a route around the East Arm of Great Slave Lake. This $700-million project was eventually put on hold in 2011 due to a lack of financing and opposition from the Lutsel K'e Dene Band.

Now, the project is being re-vamped and will focus on connecting communities between Taltson and the Snare Hydro System to a single grid, said Michael Miltenberger, minister responsible for the NWT Power Corp.

"This is a project that would have two phases - there is the phase that would connect the Snare system to the Taltson system with a spur north so we can hook into the mines - that's the big, big piece - the other piece that we looked at is ... the inter-tie to the south."

The intention of the first phase is to run transmission lines from the Taltson dam, located 64 km from Fort Smith, to the Snare Hydro System, located about 140 km northwest of Yellowknife. It would tie Kakisa and Fort Providence into the grid along the way, with a substation on the south side of the Mackenzie River to eventually run a line to Trout Lake, Fort Simpson, Jean Marie River and Fort Liard.

"The Snare-Taltson grid connect would then make the Taltson (dam) expansion economically viable because we would then have the ability to move the power to where it's needed," said Miltenberger.

The second part of the plan - connecting the grid to the south - came under fire in the assembly on Oct. 18 from Weledeh MLA Bob Bromley.

"I'm very disappointed that the premier would encourage the impression that the Northwest Territories has any potential for selling power to the south," he said, pointing to the fact there is more than 20 cents difference between power rates in the NWT and potential southern markets.

"We could only sell power at a huge loss," he said.

Miltenberger did not side one way or the other, saying that power could just as easily be sold to the North as it could to the south.

While shovels may not be in the ground before the 18th assembly takes over in 2015, planning for this major infrastructure project should be complete and the problem of overcoming the NWT's current $800-million borrowing limit should be resolved, he said.

"This project is going to generate revenue," said Miltenberger. "It's going to pay for itself with the power we're going to sell, but we need to invest up front to get it done."

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