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Energy Projects, Programs and Pricing November 24 th, 2010.

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Presentation on theme: "Energy Projects, Programs and Pricing November 24 th, 2010."— Presentation transcript:

1 Energy Projects, Programs and Pricing November 24 th, 2010

2 Introduction Energy Projects and Programs –Energy Plan –Energy Priorities Investments Energy Pricing –Electricity Review

3 Energy Plan: Introduction

4

5 Energy Priorities Framework: Introduction The Priorities are based upon priorities identified by the 16 th Legislative Assembly: Pursue initiatives that reduce the cost of living, and in particular energy costs; Work proactively with residents, communities and industry on mitigation of climate change; and Advance alternative energy initiatives.

6 Energy Priority Investments A multi-year, $60 million commitment to provide funding for energy initiatives. Wide range of projects. Premised on Government support to ensure no impact on consumers. Key action areas from the Energy Plan: o Energy conservation and efficiency; o Alternative energy and emerging technologies; o Energy policy and planning; o Energy development and supply; and o Reducing government energy use.

7 Energy Priorities Investment Plan: Investment Summary Reducing Energy Use in GNWT Assets: $11.5M Energy Policy and Planning: $9.3M Energy Conservation and Efficiency: $6.3M Alternative Energy and Emerging Technologies: $8.7M NWT Energy Development and Supply: $24.3M $60 million Investment Beginning in 2009/10

8 Energy Priorities Investment Plan: Energy Development and Supply ProjectDepartment Lutselk’e Mini-Hydro FacilityNorthwest Territories Energy Corporation Whati Mini-HydroNorthwest Territories Energy Corporation Sahtu Hydro / Bear River FeasibilityNorthwest Territories Energy Corporation Fort Providence Transmission Line Extension Industry, Tourism and Investment Natural Gas ConversionIndustry, Tourism and Investment Taltson Hydro ExpansionNorthwest Territories Energy Corporation Hydro Development (Hydro Strategy)Northwest Territories Energy Corporation

9 Energy Priorities Investment Plan: Alternative Energy ProjectDepartment Community Swimming Pools - Solar Power Environment and Natural Resources Biomass StrategyEnvironment and Natural Resources Wind Energy DevelopmentEnvironment and Natural Resources In-Stream Hydro Power DevelopmentNorthwest Territories Power Corporation Geothermal Power DevelopmentEnvironment and Natural Resources

10 Energy Priorities Investment Plan: Energy Conservation and Efficiency Project DescriptionDepartment Community Energy Planning Support Municipal and Community Affairs, Arctic Energy Alliance Residual Heat ExpansionNorthwest Territories Power Corporation Energy Efficiency Incentive ProgramEnvironment and Natural Resources Arctic Energy Alliance Increased Community Presence Environment and Natural Resources, Arctic Energy Alliance Business Support Program Environment and Natural Resources, Industry, Tourism and Investment, Arctic Energy Alliance

11 Energy Priorities Investment Plan: Reducing Government Energy Use Project DescriptionDepartment Wood Pellet Boiler - Legislative Assembly Public Works and Services Wood Pellet Boiler - Fort SimpsonPublic Works and Services Capital Asset Retrofit FundPublic Works and Services Energy Efficiency for Public HousingNorthwest Territories Housing Corporation

12 Energy Priorities Investment Plan: Energy Planning and Policy Project DescriptionDepartment Territorial Power Subsidy Program Finance, Industry, Tourism and Investment Electricity ReviewIndustry, Tourism and Investment Northwest Territories Power Corporation Review Executive Energy Plan RenewalIndustry, Tourism and Investment Community Pricing SurveyExecutive

13 Fort Simpson In-Stream Hydrokinetic Turbine

14 Alaskan Experience

15 Geothermal in the Northwest Territories

16 Geothermal Project Design Concept Subsurface: o Hydrothermal Fluids; o Production Well; and o Injection Well Surface: o Binary-Cycle Power Plant; o Six 100 kW Generating Sets Units (Operating in Parallel); o Option for Heat Distribution;

17 Wood Pellet/Biomass Projects

18 Wind Speeds Across the Arctic Tuktoyaktuk 5.3 m/s Kotzebue 6 m/s Ulukhaktok 6.7 m/s Sachs Harbour 6.5 m/s Paulatuk 5.7 m/s Rankin Inlet 7.3 m/s Cambridge Bay 6.7 m/s Arviat 7.3 m/s Kuujjuarapik 7.5 m/s Inukjuak 8 m/s Salluit 7.5 m/s Chesterfield Inlet 7.5 m/s Pincher Creek 7.5 m/s Whitehorse 6.5 m/s Yellowknife 5.4 m/s

19 Energy Planning and Policy: Hydro Strategy Focus on the development of the tremendous potential of over 11,000 MW. The Hydro Strategy focuses on four strategic areas: o Preparing for Hydro Development; o Protecting our Environment; o Financing Future Hydroelectric Projects; and o Policy Initiatives. Draft Hydro Strategy released in December Additional discussions with Aboriginal governments and organizations are required. A finalized Hydro Strategy will be released in 2011/12.

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21 21 Northwest Territories Hydro Development Existing Developments Legend Potential Transmission Existing Transmission Highways Proposed Mackenzie Pipeline Potential Hydro Existing Hydro Communities Established Industrial Loads Potential Industrial Loads Possible Export Connection

22 22 Northwest Territories Hydro Development Developments Currently Proposed or Actively Studied Legend Potential Transmission Existing Transmission Highways Proposed Mackenzie Pipeline Potential Hydro Existing Hydro Communities Established Industrial Loads Potential Industrial Loads Possible Export Connection

23 23 Northwest Territories Hydro Development Further Developments Contemplated Legend Potential Transmission Existing Transmission Highways Proposed Mackenzie Pipeline Potential Hydro Existing Hydro Communities Established Industrial Loads Potential Industrial Loads Possible Export Connection

24 24 Northwest Territories Hydro Development Ultimate Potential Legend Potential Transmission Existing Transmission Highways Proposed Mackenzie Pipeline Potential Hydro Existing Hydro Communities Established Industrial Loads Potential Industrial Loads Possible Export Connection

25 Taltson Update November, 2010 Taltson

26 Taltson Update November, 2010

27 Energy Pricing

28 United States Energy Information Administration: West Texas Intermediate Oil Price

29 Natural Resources Canada: Canada’s Energy Outlook

30 Hydro Quebec: North American Electricity Prices Location Price (¢/kWh) Yellowknife22.37 New York25.32 Boston19.12 San Francisco18.06 Fort Smith16.36 Houston17.86 Edmonton10.22 Toronto11.46 Regina10.91 Vancouver7.13 Montreal6.87 Winnipeg6.94 Electricity rates based on consumption of 1,000 kWh of electricity and exclude basic monthly charge and taxes.

31 Electricity Rates for Selected Communities Community Total Rate (¢/kWh) Service Provider Whatì84.57NTPC Délînê83.20NTPC Łutselk'e78.53NTPC Tuktoyaktuk70.80NTPC Fort Simpson73.45NTPC Inuvik60.35NTPC Norman Wells44.71NTPC Fort Smith16.36NTPC Fort Resolution20.75NTPC Hay River25.68NUL(NWT) Fort Providence50.07NUL(NWT) Wekweètì101.33NUL(NWT) Trout Lake85.38NUL(NWT) Yellowknife22.37NUL(YK)

32 The Ministerial Energy Coordinating Committee released a public discussion Paper in The Committee appointed the Electricity Review Team to guide the public discussion process. A forum was held in Yellowknife to ensure the voices of our small communities were heard. The Electricity Review Team’s final report, Creating a Brighter Future: A Review of Electricity Regulation, Rates and Subsidy Programs, was released in November During the Electricity Review process many asked for a review of the Northwest Territories Power Corporation. The GNWT released a comprehensive response to the Electricity and Northwest Territories Power Corporation Reviews in May Electricity Review - Background

33 GNWT response focuses on actions including simplifying the regulatory process to make it more understandable, and therefore, accessible to northerners. The GNWT will take a leadership role to ensure the electricity system is efficient, affordable and that residents and businesses have equitable access to electricity. The Government’s actions were organized into five areas: o Vision and Principles; o Electricity Rates; o Affordability and the Territorial Power Subsidy Program; o Electricity Regulation; and o Industry Structure and NTPC Operations. Energy Planning and Policy: Electricity Review

34 Electricity Rate Policy Guidelines were issued to the Public Utilities Board, key changes include: o The establishment of rate zones; o Allocate administrative and general operating costs by energy sales; o The establishment of territorial electricity rate riders; o Reduce the return earned by the Northwest Territories Power Corporation; and o Electricity rates will not exceed electricity rates on October 1 st, The Government, as a form of transitional support, will pay all existing rate rider fund balances, a $6 million contribution. The Government will forgo an annual $3.5 million dividend from the Northwest Territories Power Corporation for 2010/11 and 2011/12 Energy Planning and Policy: Electricity Review Key Actions

35 The Territorial Power Subsidy Program residential usage thresholds will increased to 1,000 kWh per month between September and March and decreased to 600 kWh per month between April and August. A Legislative Proposal will be developed to update the Public Utilities Act, a key change includes to clarify the authority of the Government to issue policy direction to the Public Utilities Board. Energy Planning and Policy: Electricity Review Key Actions

36 Community Current Rate (¢/kWh) Revised Rate (¢/kWh) Difference (¢/kWh) Difference (%) Colville Lake % Nahanni Butte % Whatì % Gamètì % Łutselk'e % Fort Resolution % Yellowknife % Electricity Review: Impact on Residential Rates

37 Community Current Rate (¢/kWh) Revised Rate (¢/kWh) Difference (¢/kWh) Difference (%) Colville Lake % Nahanni Butte % Whatì % Gamètì % Łutselk'e % Fort Resolution % Yellowknife % Electricity Review: Impact on Commercial Rates

38 Community Current Bill (Oct 1, 2009) TPSP 700 kWh Revised Bill TPSP 1,000 kWh Difference (¢/kWh) Difference (%) Colville Lake $918$254-$664-72% Nahanni Butte $717$254-$463-65% Whatì $459$254-$205-45% Gamètì $601$254$347-58% Łutselk'e $440$254-$186-42% Fort Resolution $237$191-$46-19% Yellowknife $265 0%$0 Electricity Review: Impact on Residential Bill (1,000 kWh)

39 Community Current Bill (Oct 1, 2009) Revised Bill Difference (¢/kWh) Difference (%) Colville Lake $8,495$1,829-$6,666-78% Nahanni Butte $9,099$1,829-$7,270-80% Whatì $3,381$1,829-$1,552-46% Gamètì $6,350$1,829-$4,521-71% Łutselk'e $3,151$1,829-$1,322-42% Fort Resolution $841$625-$216-26% Yellowknife $867 0%$0 Electricity Review: Impact on Commercial Bill (4,000 kWh)

40 Consolidation of Maintenance and Utilities This initiative presented the GNWT with an opportunity to improve the efficiency and cost effectiveness of tracking utilities through consolidation of responsibilities and resources. It will result in a standardized approach to the payment and tracking of utilities and management of energy consumption. If the public wants to set energy or greenhouse gas emissions reduction targets, the GNWT needs to track usage and costs

41 Consolidation of Maintenance and Utilities Department Base Funding (effective ) Actual Expenditures Shortfall from Base Funding Justice$1,415,000$1,527,000($112,000) ENR$590,000 - ECE$10,660,000$11,379,000($719,000) ITI$43,000 - H&SS$7,001,000$7,477,000($476,000) DOT$3,152,000$3,283,000($131,000) Total $22,861,000$24,299,000($1,438,000)

42 Energy prices will rise again over the long term. Developing renewable energy while not increasing the high cost of living in the north is a challenge. The GNWT has made an unprecedented financial commitment to reduce energy costs, develop local energy sources, and reduce imported diesel. Working as a Territory and leveraging the power requirements of industry can result in greater development of northern energy, economic opportunities, and in the long term, a more sustainable NWT energy system. Concluding Comments


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