SOMBA K'E/YELLOWKNIFE
Northwest Territories Power Corporation will submit a bid for the power franchise agreement in Hay River, something Northland Utilities officials fear is an opening move toward taking complete control of the electrical system in the territory.

Northland Utilities worker Dan Richards works the line on May 22 in Hay River. The company is warning customers that the territorial government intends to use tax dollars to expropriate $180 million in assets in an effort to push the utility out of the territory. - Jared Monkman/NNSL photo

The Town of Hay River last year decided it would not renew its franchise agreement with Northland. Last week it issued a request for proposals (RFP) from interested utilities.

"The entire premise behind an RFP is that it's an open and competitive process," said Hay River mayor Andrew Cassidy.

"This is not an attempt to get (Northland Utilities) out of the picture, we don't have a preferred company here. Our preferred company is the one that gets us the best rate on power."

Michael Miltenberger, the minister responsible for the NTPC, confirmed the Crown corporation that has been heavily subsidized by the GNWT will submit a bid.

Deh Gah Got'ie Koe chief Joachim Bonnetrouge said Fort Providence has had a good relationship with Northland, although more people are talking about increasing power costs.

"We've had a pretty good relationship with Northland to date," he said.

"Obviously we're going to do what we can to fight what seems like a takeover ... it's not very nice."

He was left wondering why the government appears to be moving in a direction without consulting with communities.

"Decisions are being made and we're being left out of the picture," he said.

There hasn't been much talk among community members on the issue yet, he said.

"Everyone is kind of low key about it right now."

Allegations of secret government plans swirled in the assembly as it resumed sitting last week.

Miltenberger told the legislative assembly May 27 he believes NTPC can "significantly" close the gap between the 31 cents per kilowatt hour charged by Northland in Hay River to the 21 cents per kilowatt hour in Fort Smith charged by the power corp.

"I respect the openness, fairness and transparency of the RFP process," Range Lake MLA Daryl Dolynny said in the assembly May 28.

"However, what I don't respect is that a process is flawed and riddled with a hidden cabinet agenda that will secretly change our energy policy without public oversight."

Northland vice president Doug Tenney suggested in an interview with News/North the NTPC bid for the franchise is an opening move toward taking over all power distribution in the territory.

Northland distributes power in Hay River, Yellowknife, Fort Providence, Kakisa, Wekweeti, Enterprise and K'atlodeeche First Nation.

The community of Enterprise recently let its 10-year power contract with Northland expire. The subject of renewing it came up at a May 4 council meeting but councillors chose to defer the issue to a later date, with many members saying they'd like to review alternative options. In the meantime, the community still receives power through Northland.

The company, owned by Calgary-based ATCO, has valued its power assets across the territory at $180 million.

Miltenberger outright denied cabinet is considering expropriating the assets of Northland in an interview with News/North last week.

Tenny says Northland is not afraid of competition but the playing field is tilted in power corp.'s favour because it is owned by the GNWT.

"The Hay River process is not a competitive process. It will not end with a level playing field," said Tenney.

The intentions of cabinet were questioned by MLAs in the legislative assembly last week.

Hay River South MLA Jane Groenewegen called for clarity on a territorial energy plan in light of a May 27 briefing by the government for MLAs that she said was devoid of substance.

"It's an absolute insult to the 11 members who sit on this side of the House that this government - if they have a plan - are not willing to share it or discuss it or take it out for public consultations," she said.

"I can't divulge confidential information that's been shared in committee here but this is something that we need to talk about."

Yellowknife Centre MLA Robert Hawkins, who has spoken against Northland and called its recent claims a fear tactic, asked Miltenberger if the GNWT intent is to drive the company out of the territory.

The minister said he understands there's been some concern and "heartburn" in corporate boardrooms, but the concerns "are unfounded."

Instead of trying to take over assets, Tenney said the company should be in a room together with power corp. and the GNWT to come up with a joint solution to the cost of power.

It has suggested costs could be cut by collaborating or merging some operations, such as billing or on-call staff.

There's a range of options from merging back-office staff functions to creating one power company.

As well, Tenney said the number of rate zones across the territory should be reduced from seven to perhaps two - one for communities on hydro and another for those using thermal.

"If they have something specific, they should put it on the table," Miltenberger said when asked about whether the GNWT would consider proposals from Northland.

- with files from Sarah Ladik

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