Power corp lays out its case
Says its not overcharging Yellowknifers but MLA, mayor say truth still hard to grasp
John McFadden
Northern News Services
Friday, October 28, 2016
SOMBA K'E/YELLOWKNIFE
A Yellowknife MLA says he is no closer to determining whether Yellowknifers are being overcharged for their power than he was before listening to a presentation by the Northwest Territories Power Corporation.
The GNWT-owned company made its presentation to the territorial government's priorities and planning committee at the legislative assembly Wednesday.
The presentation followed a months-long media campaign by privately owned and operated Northland Utilities, the company that buys power from power corp., and then distributes it to Yellowknifers. The campaign claimed power consumers in the city were being overcharged by $500 a year on average to help subsidize power costs in the rest of the territory. The utility based that assertion on a power corp. general rate application document showing it was charging Northland 114 per cent of what it costs to power the city.
Power corp. officials insisted Wednesday the figure was simply a projection calculated in 2011 which actually never became reality. They said the true figure, which was calculated for the 2013/14 fiscal year, is closer to 99 per cent.
"When that calculation was done it was based on applying the full rate increase we were applying for which was 28 per cent," said Emanuel DaRosa, president and chief executive officer for power corp., in a follow-up interview yesterday.
"That didn't happen because the government stepped in and softened the rate increases for all customers of the NWT. Those (114 per cent) numbers were generated years before the year actually happened. There's a lot of things in our
costs and our revenues
that are well beyond our
control, like the weather."
He told Yellowknifer he would not specifically address Northland's media blitz and the numbers contained in it. He categorically denied Yellowknifers are being overcharged for power.
Nonetheless, Yellowknife North MLA Cory Vanthuyne said the technical aspects of power corp.'s presentation went over the heads of everybody in the committee room. He said he still has no idea whether Yellowknifers are being overcharged for power.
"I'm not sure there was any clarity. I think there was an opportunity to shed some light on a dark situation, no pun intended," Vanthuyne said.
"But what's happening is that folks are starting to feel like pawns in this back and forth between a private enterprise and the government. I don't blame Northland for their approach on this. I'm not waving their flag but when you've had a presence in this territory and have been a good community contributor for 30 years and now your back is against the wall, you are going to take some steps toward finding out what really is going on."
Vanthuyne said Louis Sebert, the minister responsible for power corp., had an opportunity to explain what the goals of power corp. actually are but failed to do so.
Mayor Mark Heyck said, like Vanthuyne, he finds the whole pricing process very complicated. But he was less inclined to speak out against either side.
"There are a lot of assertions being made on both sides. From the perspective of the City of Yellowknife representing our constituents in this community - we're likely going to want to delve into these numbers and better understand what is happening," said Heyck.
"We want to get to the bottom of this and see where the truth lies."
DaRosa said Yellowknife customers can be assured power rates for all utilities, including power corp., are regulated by the NWT Public Utilities Board (PUB) through a fair and open process that examines the costs in generating power and how much customers should be charged.
Doug Tenney, vice-president of northern development for ATCO, said he doesn't buy power corp.'s rationalization that the 114 per cent figure is merely a projection and not an actual cost figure.
"I don't agree with that at all. Those are NTPC's filings on what they call the revenue to cost coverage," said Tenney.
PUB chair Gord Van Tieghem said, however, if anything untoward in a general rate application had come before the board it would have been flagged.
"The PUB's decisions are thorough and monitored," Van Tighem said.
"Rates are set by the PUB under the legislation that defines how the rates are to be set. They are set on the basis of the cost of service. Anything else is a debate between two people who are debating in the media."
