Mayor eyes Hay River power play
Town in midst of switching power distributor; city's agreement expires in 2020
Shane Magee
Northern News Services
Monday, March 28, 2016
SOMBA K'E/YELLOWKNIFE
While the city's power distribution agreement with Northland Utilities expires in four years, Mayor Mark Heyck said he's watching what's unfolding in Hay River and has spoken to the town's mayor.
Hay River council announced at the start of the month it intends to switch from Northland Utilities as its electricity distributor to Northwest Territories Power Corporation, a GNWT Crown company.
The town's council made the move after seeking proposals from companies with the aim of getting cheaper power.
The power corp. generates the power in the South Slave region but Northland was responsible for the distribution of electricity and maintenance of the lines in town.
Northland is also Yellowknife's distributor through what's called a franchise agreement, which won't expire until 2020.
"We're very, very interested in seeing power rates come down for our residents here in Yellowknife," Heyck said when asked if he'd support making a similar move if he's still in office. His current term ends in 2018 when another municipal election will be held.
"We want to see how this plays out and what the rates look like when things are all said and done," Heyck said.
"I will say that power rates in Yellowknife and this region are a major going concern for us. We hear that it's an impediment to business development, to economic development."
Hay River Mayor Brad Mapes said he called Heyck to give him a heads up of the town's decision.
"It's definitely something - the process we'll be going through - it will give (city council) a better understanding of the whole process. It's definitely something they'd be interested in seeing the results of," Mapes said.
Northland expects to get another franchise extension when the time comes.
"The franchise is not being renewed until 2020," said Doug Tenney, vice-president of northern development for Northland Utilities.
"I think at that point, as is normal, we would approach the city with full expectations that we would be renewing it for another 10-year term. That would be our expectation of what would happen. I think that Northland Utilities has provided excellent service, there's been no problems with the ability to keep the lights on and keep customers happy."
Asked if he thinks there will be pressure to reduce power rates in the city, he said all communities are trying to find what will work best.
"I think in all cases, the cities and the towns we do serve are just being diligent and trying to find out what is the best scenario for them and who is the best supplier," he said.
While discussing the recently released federal budget, Heyck pointed out a mention of regional engagement on power infrastructure.
"My hopes is that we'll be able to sit down with the territorial government, with the federal government to talk about some of the untapped potential we have in terms of hydro power here in the North and how much of it is trapped in areas that can't really use all of the supply that's available," he said, referring to the Taltson system in the South Slave region that powers Hay River, Fort Smith, Fort Resolution and Enterprise.
There have been plans floated previously to link the power grid in the North Slave with the South Slave as well as then linking south to the rest of the country. Those plans have floundered due to rising cost estimates for the transmission routes.
Heyck pointed to how when water levels dropped in the Snare hydro system powering the city the past two years, the power corp. had to get millions in bailouts from the GNWT to cover the cost of diesel generation.
"If we have an opportunity to actually create more of an actual power grid here in the Northwest Territories, I think that would certainly benefit Yellowknife in the future," he said.
