Northland: Delay Hay River power deal
Utility asks regular MLAs to put forward resolution asking cabinet to delay expropriation of Northland by NWT Power Corp.
John McFadden
Northern News Services
Monday, June 20, 2016
HAY RIVER
Northland Utilities has asked a committee of MLAs to try to put the brakes on what the electricity company calls the expropriation of Northland Utilities in Hay River.
Doug Tenney, vice president of ATCO Electric, the parent company of Northland, made that request during a priorities and planning committee meeting at the legislative assembly on Thursday.
It was part of a blistering attack on the way the NWT Power Corporation does business in the territory.
Tenney said Northland wants the transfer of the Hay River's power system to NWT Power Corporation (NTPC), slated to happen on Nov. 30, to be delayed until the results of the evaluation of a potential partnership model is complete.
He has asked MLAs to introduce a resolution to cabinet asking for the delay.
Tenney said NTPC overcharged Northland Utilities Hay River customers by 30 per cent for electricity for years. He added that a "competitive" process for franchise renewal in Hay River was launched which allowed the government to promise lower rates after years of overcharging. He contends the NTPC can only pay for this by overcharging Yellowknifers.
Tenney is suggesting that the GNWT wants to take over all power distribution in the territory and force Northland out of business in the territory. He said the government's real energy agenda is to eliminate consumer protection by dissolving the public utilities board.
He added the government wants complete control of NTPC, currently considered a Crown corporation, with intentions of turning it into a government department. Tenney said he simply does not understand how NTPC expects to be able to provide power in Hay River at a substantially lower rate than Northland.
"I've seen in the media that the power corporation has promised jobs to all of our staff which obviously begs the question - if they want to hire all of our staff, where's the magical savings coming from," Tenney said.
He added the perceived government plan to force them out of business would be harmful on many fronts, not the least of which would be the financial loss to aboriginal owned and operated Denendeh Investments which owns 14 per cent of Northland. Negotiations have been ongoing for Denendeh to eventually own 50 per cent of Northland.
Hay River North MLA R.J. Simpson was among the MLAs listening to Tenney's presentation.
"It's an emotional issue in Hay River. Northland has been there for 65 years. I used to go to their Christmas parties when I was a kid," he said. "They are great members of the community but the bottom line is people in Hay River just want cheaper power."
Northland Utilities serves nine communities in the NWT taking in about 26,000 residents. NTPC serves 25 communities covering about 16,000 residents.
Louis Sebert, minister responsible for the power corporation stated in an email that the GNWT is not planning to expropriate Northland assets in Hay River.
"The Town of Hay River is negotiating with (Northland) to purchase assets associated with the franchise on terms agreed upon by the parties," Sebert stated.
"We would be interested in hearing about any potential solutions, but the starting point for anything has to be focused on lowering the cost of living for our residents, not on protecting the interests of a for-profit business."
NTPC spokesperson Pam Coulter stated in an email that officials had yet to see Northland's proposals and had no comment.
