MLAs pass motion on energy subsidies and infrastructure

Regular NWT MLAs passed what they described as a “kind-of an omnibus motion” centred around power costs, subsidies and infrastructure on Wednesday.

The motion, which was introduced by Range Lake MLA Keiron Testart and seconded by Yellowknife Centre MLA Robert Hawkins, calls on the territorial government to create a contingency support fund for businesses who face losses due to power outages.

The motion also asks for a review and expansion of electricity subsidies available to residents and businesses, and for investments toward grid modernization to improve reliability of power.

“Power outages are no longer inconveniences, they are serious financial drains and a direct threat to the safety of homeowners and the viability of businesses in the Northwest Territories,” Testart said in the legislature on Wednesday.

Last month, the lights – and heat – were shut off in Yellowknife, Dettah and Ndılǫ for four hours after the Jackfish substation experienced a failed electrical connection.

The outage caused frozen and burst water pipes across the affected communities, leading to the City of Yellowknife to switch water sources due to the increased demand.

‘What do you want to give up?’

While many MLAs expressed support for the motion, citing the desire to improve affordability, others noted concerns about how the territory’s stretched budget could support additional subsidies and support programs.

“I would like all of us to have a hard conversation about what gets taken off the table to pay for impactful subsidies and mass improvement to our power infrastructure,” said Great Slave MLA Kate Reid.

“I will remain consistent with my reply to the budget and ask wholeheartedly to all members, what do you want to give up?”

Yellowknife North MLA Shauna Morgan said she supports the integration of renewable energy, battery storage at the community level and exploring opportunities to add redundancy to the energy grid to avoid outages.

“But none of those things are going to lower costs in the short term, or probably not even the medium term, and it doesn’t help to pretend that they will,” said Morgan.

Responding to the motion on behalf of the GNWT, Caroline Wawzonek, the minister responsible for the NWT Power Corporation, said it is urgent that the territory be aware of energy challenges, as reliance on diesel and a lack of connection to the North American energy grid places the NWT in a vulnerable position.

“It puts us at such a disadvantage when costs become volatile, as they will with what’s happening in the world right now. I am deeply concerned when I think about what’s going to happen to gas prices,” said Wawzonek, likely referring to Israel and and the United States’ recent joint attack on Iran and its impact on gas prices in Canada.

“It is going to dramatically affect the three northern territories of Canada in a way that this country – I would suggest – is not prepared for and not really thinking about right now.”

‘It is time to get to base solutions’

Wawzonek said there aren’t many options available to help cushion this possible blow, besides work that is already underway.

“There is some really exciting work happening between both utilities – NAKA and NTPC – working together in terms of the integrated power systems planning,” said Wawzonek.

“This is an opportunity for us to actually get a meaningful handle on what this territory is going to look like going forward.”

Power subsidies are also already in place, Wawzonek said, and significant public dollars are being spent on items such as the 2030 Energy Strategy, which looks to improve sustainability, reliability and affordability.

“I can’t just say we’ll just spend more, just give more. It does not fix it,” Wawzonek said. “And I think one of the members said it’s a band-aid solution – it’s not a base solution. And I totally agree with that. It is time to get to base solutions.”

The motion passed with eight regular MLAs voting in favour and three opposed. Cabinet members abstained from voting.

The territorial government has 120 days to respond to the motion, which is not binding.