$45,000 of diesel burned per day
Minister fears lack of precipitation could mean GNWT will be on the hook for millions more next year
Cody Punter
Northern News Services
Published Friday, January 23, 2015
SOMBA K'E/YELLOWKNIFE
Jackfish Power Plant is currently burning through an average of $45,000 worth of diesel a day in order to keep the lights on in Yellowknife, according to Michael Miltenberger, the minister responsible for the Northwest Territories Power Corporation.
The Northwest Territories Power Corporation is currently burning an average of $45,000 worth of diesel every day to keep power on in Yellowknife due to record low water levels in the Snare Hydro System. - NNSL file photo |
The power corp. has been dependent on the Jackfish Power Plant to generate power for the North Slave region ever since one of the biggest droughts in the territory's history last summer led to record low water levels in the Snare Hydro System.
Because of that, 30 per cent of the North Slave's power is now generated through diesel power, with approximately 40,000 litres burned every day, whereas it usually accounts for just five per cent of the region's power.
"That's Mother Nature pretty much (calling) the tune here," said Miltenberger.
In total, the GNWT has budgeted between $18 million to $20 million to pay for the diesel, which will be required at least until June or July, Miltenberger said. Typically, Jackfish burns approximately 350,000 litres in a year at a cost of around $425,000 annually.
Ever since the power corp. upped its dependance on diesel in August, it has gone through a total of seven million litres of diesel at a cost of $8.1 million. During that time, Jackfish's eight generators have been running at approximately 35 per cent capacity, although that number fluctuates depending on weather and load requirements. According to Miltenberger, the power plant has the capacity to store up to 1.6 million litres of diesel at a time with tanks getting topped up every week.
Above and beyond concerns about the amount of diesel being burned this year, Miltenberger fears water levels are unlikely to return to normal given the relatively little amount of snow that has fallen in the North and South Slave regions this winter.
According to Environment Canada, 242.2 millimetres of precipitation fell over Yellowknife in 2014. The annual average for precipitation between 1981 to 2010 was 288.6 millimetres.
The statistics do not bode well for this year either. Some 114.6 millimetres of precipitation have fallen since last September - only three millimetres more than during the same period last winter.
Given the troubling signs of another year of drought ahead, Miltenberger said the GNWT could be on the hook for another year of increased diesel usage at Jackfish.
"That's a very strong possibility unless we get a a massive amount of snowfall and/or some considerable spring rain, not only around here but for the Snare System up in the Barrenlands," he said. "We don't have a lot of precipitation, so we have to really hope that as winter moves into the tail end that we get a lot of late-winter show of spring rain."
Low precipitation is not the only problem. David Phillips, senior climatologist with Environment Canada, pointed out temperatures on average were 1.6 C warmer last summer.
He said if that trend continues it could mean water levels will remain low even with more rain and snow in the region.
"There's no mystery that temperatures are clearly warmed up," he said. "So what happens is even if you got a normal amount of precipitation, it's not enough because if your temperatures are warmer, you're going to have more evaporation, so there's going to be more water lost from rivers and lakes and reservoirs and groundwater."
Although the GNWT is moving forward with small-scale energy-saving projects, such as wood pellet boilers, solar panels and wind power in communities across the NWT, Miltenberger said any big-ticket items that could alleviate another potential shortfall in hydro production in the North Slave would be dependent on the federal government increasing the territory's borrowing limit.
Miltenberger said he hopes to have a response from the federal government before he gives his budget address on Feb. 5.
"If our borrowing limit remains unchanged, we're going to be going ahead with a maintenance approach as opposed to an approach with some vision to it," he said.
The one bright side of the current power situation in the North Slave region is that diesel prices have dropped by close to seven cents to $1.145 per litre from $1.218 since power corp. started upping its reliance on diesel.
The utility has saved approximately $600,000 over that period because of the lower prices. Unfortunately, the price of diesel has remained relatively high in comparison to gas prices, which have plummeted by upwards of 35 cents in Yellowknife since September.
If diesel prices were to drop more in the next few months, Miltenberger said there is the potential to save even more money.
