Nunavut woos other power corporations

SEAN McKIBBON
Nunatsiaq News

IQALUIT — Recent meetings between the Nunavut government and power company representatives from other provinces are about finding options and not about trying to get a better bargaining position, says Ed Picco, the Nunavut minister responsible for the Northwest Territories Power Corp..

“Its not a poker game. It’s not bargaining chips. We’re not talking bargaining chips. We’re in an agreement right now with the GNWT in good faith,” said Picco

Despite an acrimonious, pre-Nunavut debate over how NTPC would be run after division, Picco says the Nunavut government is not trying to gain a better position at the bargaining table by showing the west that Nunavut can go elsewhere for electricity.

“We’re looking at options for the safe and effective delivery of electrical power to the residents of the territory,” Picco said.

Before division of the Northwest Territories, Nunavut leaders were looking for alternatives to the 60-40 ownership split proposed by the GNWT for the future joint management of NTPC, or 70-30 split proposed by some western NWT MLAs.

Picco says the current agreement puts Nunavut’s share at around 33 per cent.

“Is this the rate we want to continue for the next five years?” he asked. “Should we continue to have Hay River as the head office of one of the power corporations? Should we have our own power corporation head office here in Nunavut?”

Picco says it might make more sense to have the administration of the power utility in Nunavut and closer to the minister responsible for it.

He says his government is trying to decide whether it likes the current model for running NTPC, or whether it should try something different.

The transitional agreement between Nunavut and the Northwest Territories will see joint ownership of NTPC continue in its present form until March 31, 2001. Picco says this gives Nunavut time to decide on the best way of providing electrical power to Nunavut residents.

“Should we look at other opportunities that may present itself, for example, a stand-alone power corporation for Nunavut? Or should we look at out-sourcing some of the operational requirements for Nunavut to an outside agency?” Picco said.

Contenders include Newfoundland and Labrador Power; ATCO Energen; Sask Power International; Manitoba Power; Ontario Hydro; Quebec Hydro; and Trigen Energy Canada Inc., Picco said.

Representatives from those companies, along with NTPC, were in Iqaluit to talk about their ideas for delivering power in Nunavut and also to learn “what Nunavut is about,” Picco said.

“It maybe that the current model is the one we want,” he said, but he said the Nunavut government can’t make that decision without reviewing the possibilities first.

He said other utilities may be able to take advantage of economies of scale not available to NTPC.

Picco has appointed a working group called “Ikuma” to look at various ideas presented by the utilities. Picco says he hopes to have something to present to cabinet on the issue by the end of the month.