We have a serious territorial energy ailment that is crippling us across the land. The NWT has the highest cost of electricity in Canada, bar none.
What is the cause of this ailment you ask? Taking a holistic look, the fundamental cause is an overweight, over-centralized, top-heavy government plus its overweight, over-centralized, top-heavy Crown corporation, have a combined history of overeating of a 'status quo' diet of diesel, hydro, too much red tape and poor planning that brings us to the terrible circumstances we are now facing.
There are other symptoms of this serious territorial energy ailment:
The Taltson hydro facility renovation, has gone from a few months and millions, to a year and a half and pushing $100 million, resulting in a massive increase to rates for decades to come;
The Inuvik wind project, a small project, also went from months and millions of dollars to many years and tens of millions of dollars;
At the same time, Diavik put in nine megawatts of renewable energy and storage in one of the most inhospitable places possible for $3 million a megawatt on time, on budget and paying for itself in a few years;
The NWT Power Corporation (NTPC) and the GNWT have consistently refused to follow DiavikSA¹ú¼ÊÓ°ÊÓ´«Ã½™s example with renewables and storage. The NTPC website acknowledges that a miniscule 1 per cent of their generation is renewables, a disgrace;
NTPC is a monopoly with no incentive to improve because they have routinely come to the legislative assembly over the decades for literally hundreds of millions of dollars for low water surcharges and other cost overruns. Plus, they keep raising our rates.
NTPC and the GNWT would have us believe the multi-billion dollar Taltson expansion is the silver bullet that will save us - not to worry and be happy. The problem is there is not enough money - $25 million is chump change, there is not enough water, we are in a persistent drought, this project does nothing for the diesel communities across the territory and there is not enough time.
We cannot wait 15 years. We need action today.
So what can we do about this? This is now a question of our survival and territory-building. It is an issue of political will. NTPC and the GNWT are hanging to the status quo as disaster looms. Opening up five seats on the NTPC board, now comprised of deputy ministers, as some sort of signal of change is laughable.
Meanwhile, the legislative assembly is basically silent on this whole issue. We are counting on them. Their job is to be there for us on this. They are in the second year of their term, they aren't rookies any more. They have the votes to make serious change happen.
Politicians respond to public pressure. Our electrical rates are the highest in the country and getting higher. It is time for us to let the leaders know we expect them to get a grip on this. The status quo is not working and no one government can solve this problem alone.
Here are some specific things the legislative assembly can move on with direction to government:
The use of renewables and microgrid technology should be mandated in all regions with diesel communities. Every region should be supported to put in microgrid technology in their communities as a business opportunity;
The appropriate MLA committee should examine the structure of NTPC in light of its failure as a monopoly and ask related questions with an eye to a necessary restructuring;
Maybe it's time for Indigenous governments to have equity positions in NTPC to provide collective governance oversight of the operation of NTPC? It is an option worthy of serious discussion.
What type of board is needed to adequately represent the people of the North? It wonSA¹ú¼ÊÓ°ÊÓ´«Ã½™t be a board of deputy ministers, I can tell you that.
Existing policies and regulations that currently restrict renewables, such as limits on net metering, restrictive amounts of renewable energy allowed in a community and power purchase agreements designed to fail should all be reworked to promote the use of renewables.
The political point here is that in the consensus system we have, the legislative assembly is most powerful arm of government. It appoints the executive, passes laws, approves budgets, provides broad direction to cabinet and always has the majority.
We have big energy problems and the assembly, if it acts, can create the conditions to have them solved.
SA¹ú¼ÊÓ°ÊÓ´«Ã½”Guest columnist Michael Miltenberger is a former longtime MLA and cabinet minister residing in Fort Smith.