Nunavut planning for widespread power plant upgrades

Nunavut Finance Minister Keith Peterson answers questions from Baffin mayors and senior administrative officers with deputy minister Chris D’Arcy during the mayors’ forum in Iqaluit March 19. (PHOTO BY PETER VARGA)

Upgrades to aging power plants topped a list of Baffin mayors’ concerns in an open discussion with Nunavut Finance Minister Keith Peterson at a regional forum in Iqaluit, March 19.

Speaking as minister responsible for the Qulliq Energy Corp., Peterson said the government is set to finance upgrades to 17 power plants in hamlets throughout Nunavut.

“We have many power plants that are aging, and reaching end of life in the communities,” he said during the Baffin Mayors’ Forum. “We need a major infusion of funding to upgrade the power plants.”

The government wants to pay for upgrades by borrowing $200 million in the upcoming fiscal year, Peterson said. It’s part of a $750 million debt cap the GN hopes to secure from the federal government.

The federal government limited the amount the GN could borrow to $400 million in 2014-2015. This year’s request for $750 million, “will allow us to make investments in critical infrastructure in Nunavut,” he said.

Peterson’s debt request included a $300 million proposal for housing as well as $200 million for the power plant upgrades and replacements.

One of the 17 plants due for replacement is in Cape Dorset, where the QEC facility can’t supply enough energy to allow the community to expand.

“Right now, it’s holding back construction for new housing and any new infrastructure,” said Ed Devereaux, senior administrative officer for the hamlet.

Peterson said a land dispute was impeding plans to build a new plant in the community.

Despite the delays, the project is included in the government’s capital plan.

“It’s moving ahead – it’s just a question of how it will move ahead,” he said.

Devereaux also asked if the government had plans to develop alternatives to diesel-fueled power generation.

Peterson noted that the Qulliq Energy Corp. has an “alternative power subcommittee” devoted to exploring other technologies.

However, GN funding priorities for 2015-2016 are focused on upgrades to diesel-fueled power plants and construction of new ones, he said.

“Our funding sources are in short supply,” he said, adding that the government is working through federal organizations such as CanNor and National Research Council Canada “where we can access funding to test alternatives.”

Peterson said the Department of Finance is also in charge of the GN’s human resources department, which is responsible for “almost 4,500 positions in Nunavut.”

Hiring of Inuit beneficiaries, noted under Article 23 of the Nunavut Land Claims Agreement, “is a top priority for us,” he said.

The government’s human resources strategy, tabled last October, highlights the need for more beneficiaries in middle management and senior management positions, he said.

Peterson’s report to the mayors included updates on other initiatives he is carrying out as head of Nunavut’s finance department.

The department is also in charge of the GN’s human resources department, which is responsible for “almost 4,500 positions in Nunavut,” he told Baffin mayors, and hiring Inuit beneficiaries, under Article 23 of the NCLA, “is a top priority for us.”

The government’s human resources strategy, tabled last October, highlights the need for more beneficiaries in middle management and senior management positions, he said.