Energy Projects, Programs and Pricing November 24 th, 2010.
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Transcript of Energy Projects, Programs and Pricing November 24 th, 2010.
Energy Projects, Programs and
Pricing
November 24th, 2010
Introduction
• Energy Projects and Programs– Energy Plan– Energy Priorities Investments
• Energy Pricing– Electricity Review
Energy Plan:
Introduction
Energy Priorities Framework:
Introduction• The Priorities are based upon
priorities identified by the 16th 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.
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; andoReducing government energy use.
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
Energy Priorities Investment Plan:
Energy Development and SupplyProject Department
Lutselk’e Mini-Hydro Facility Northwest Territories Energy Corporation
Whati Mini-Hydro Northwest Territories Energy Corporation
Sahtu Hydro / Bear River Feasibility Northwest Territories Energy Corporation
Fort Providence Transmission Line Extension
Industry, Tourism and Investment
Natural Gas Conversion Industry, Tourism and Investment
Taltson Hydro Expansion Northwest Territories Energy Corporation
Hydro Development (Hydro Strategy) Northwest Territories Energy Corporation
Energy Priorities Investment Plan:
Alternative EnergyProject Department
Community Swimming Pools - Solar Power
Environment and Natural Resources
Biomass Strategy Environment and Natural Resources
Wind Energy Development Environment and Natural Resources
In-Stream Hydro Power Development Northwest Territories Power Corporation
Geothermal Power Development Environment and Natural Resources
Energy Priorities Investment Plan:
Energy Conservation and EfficiencyProject Description Department
Community Energy Planning SupportMunicipal and Community Affairs,Arctic Energy Alliance
Residual Heat Expansion Northwest Territories Power Corporation
Energy Efficiency Incentive Program Environment and Natural Resources
Arctic Energy Alliance Increased Community Presence
Environment and Natural Resources,Arctic Energy Alliance
Business Support ProgramEnvironment and Natural Resources, Industry, Tourism and Investment,Arctic Energy Alliance
Energy Priorities Investment Plan:
Reducing Government Energy UseProject Description Department
Wood Pellet Boiler - Legislative Assembly
Public Works and Services
Wood Pellet Boiler - Fort Simpson Public Works and Services
Capital Asset Retrofit Fund Public Works and Services
Energy Efficiency for Public Housing Northwest Territories Housing Corporation
Energy Priorities Investment Plan:
Energy Planning and PolicyProject Description Department
Territorial Power Subsidy ProgramFinance,Industry, Tourism and Investment
Electricity Review Industry, Tourism and Investment
Northwest Territories Power Corporation Review
Executive
Energy Plan Renewal Industry, Tourism and Investment
Community Pricing Survey Executive
Fort Simpson In-Stream Hydrokinetic Turbine
Alaskan Experience
Geothermal in the Northwest Territories
Geothermal Project Design Concept
Subsurface:o Hydrothermal Fluids;o Production Well; ando Injection Well
Surface:o Binary-Cycle Power Plant;o Six 100 kW Generating Sets
Units (Operating in Parallel);o Option for Heat Distribution;
Wood Pellet/Biomass Projects
Wind Speeds Across the ArcticWind Speeds Across the Arctic
Tuktoyaktuk5.3 m/s
Kotzebue6 m/s
Ulukhaktok6.7 m/s
Sachs Harbour6.5 m/s
Paulatuk5.7 m/s
Rankin Inlet7.3 m/s
Cambridge Bay6.7 m/s
Arviat7.3 m/s
Kuujjuarapik7.5 m/s
Inukjuak8 m/s
Salluit7.5 m/s
Chesterfield Inlet7.5 m/s
Pincher Creek7.5 m/s
Whitehorse6.5 m/s
Yellowknife5.4 m/s
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; ando Policy Initiatives.
• Draft Hydro Strategy released in December 2008.
• Additional discussions with Aboriginal governments and organizations are required.
• A finalized Hydro Strategy will be released in 2011/12.
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
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
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
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
Taltson Update November, 2010
Taltson
Taltson Update November, 2010
Energy Pricing
United States Energy Information Administration:
West Texas Intermediate Oil Price
Natural Resources Canada:
Canada’s Energy Outlook
0
20
40
60
80
100
120
140
160
1980 1990 2000 2010 2020 2030
AEO2009 Reference NRCan PIRA Long Term Forecast NEB
`
Hydro Quebec:
North American Electricity PricesLocation
Price (¢/kWh)
Yellowknife 22.37
New York 25.32
Boston 19.12
San Francisco 18.06
Fort Smith 16.36
Houston 17.86
Edmonton 10.22
Toronto 11.46
Regina 10.91
Vancouver 7.13
Montreal 6.87
Winnipeg 6.94
Electricity rates based on consumption of 1,000 kWh of electricity and exclude basic monthly charge and taxes.
Electricity Rates for Selected Communities
CommunityTotal Rate
(¢/kWh)Service Provider
Whatì 84.57 NTPC
Délînê 83.20 NTPC
Łutselk'e 78.53 NTPC
Tuktoyaktuk 70.80 NTPC
Fort Simpson 73.45 NTPC
Inuvik 60.35 NTPC
Norman Wells 44.71 NTPC
Fort Smith 16.36 NTPC
Fort Resolution 20.75 NTPC
Hay River 25.68 NUL(NWT)
Fort Providence 50.07 NUL(NWT)
Wekweètì 101.33 NUL(NWT)
Trout Lake 85.38 NUL(NWT)
Yellowknife 22.37 NUL(YK)
• The Ministerial Energy Coordinating Committee released a public
discussion Paper in 2008.• 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 2009.
• 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 2010.
Electricity Review - Background
• 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; ando Industry Structure and NTPC Operations.
Energy Planning and Policy:
Electricity Review
• 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; ando Electricity rates will not exceed electricity rates on October 1st,
2009.
• 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
• 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
CommunityCurrent Rate
(¢/kWh)
Revised Rate
(¢/kWh)
Difference (¢/kWh)
Difference (%)
Colville Lake 230.27 49.00 -181.27 -78.8%
Nahanni Butte 166.40 49.00 -117.40 -70.6%
Whatì 84.57 49.00 -35.57 -42.1%
Gamètì 129.80 49.00 -80.80 -62.2%
Łutselk'e 78.53 49.00 -29.53 -37.6%
Fort Resolution 20.75 16.36 -4.39 -21.2%
Yellowknife 22.37 22.37 0.00 0.0%
Electricity Review:
Impact on Residential Rates
CommunityCurrent Rate
(¢/kWh)
Revised Rate
(¢/kWh)
Difference (¢/kWh)
Difference (%)
Colville Lake 200.26 42.00 -158.26 -79.0%
Nahanni Butte 214.65 42.00 -172.65 -80.4%
Whatì 78.50 42.00 -36.50 -46.5%
Gamètì 149.18 42.00 -107.18 -71.8%
Łutselk'e 73.02 42.00 -31.02 -42.5%
Fort Resolution 18.02 12.88 -5.14 -28.5%
Yellowknife 18.87 17.87 0.00 0.0%
Electricity Review: Impact on Commercial Rates
CommunityCurrent Bill
(Oct 1, 2009) TPSP 700 kWh
Revised BillTPSP 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 $265 0% $0
Electricity Review: Impact on Residential Bill (1,000 kWh)
CommunityCurrent 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 $867 0% $0
Electricity Review: Impact on Commercial Bill (4,000 kWh)
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
Consolidation of Maintenance and Utilities
DepartmentBase Funding
(effective 2010-11)
Actual2008-09
Expenditures
Shortfall from Base Funding
Justice $1,415,000 $1,527,000 ($112,000)
ENR $590,000 $590,000 -
ECE $10,660,000 $11,379,000 ($719,000)
ITI $43,000 $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)
• 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