MLA Bob Bromley: NWT Power Corp. subsidy 'totally illogical'

The Government of the Northwest Territories announced Wednesday that it will give the Northwest Territories Power Corporation up to $29.7 million, in order to offset increased diesel generation due to low water levels at the Snare and Bluefish hydro facilities, but one territorial MLA is taking issue with the announcement.

• RELATED: N.W.T. avoids power rate hike with $29.7M to cover diesel costs

Bob Bromley, the MLA for Yellowknife's Weledeh riding, said that subsidizing diesel is like pouring money down the drain.

"We have put literally hundreds of million of dollars into these sorts of subsidies where the money disappears," said Bromley. "A one time benefit.

"There is no further return."

Bromley said that he and other regular members were not consulted before the announcement, calling the subsidy "like gambling."

"It is totally illogical to do this kind of thing," said Bromley. "We are hoping the water is going to come back, and through some miracle all the costs are going to go down or something. We have done nothing in terms of investment."

Bromley said the money would be better used by increasing subsidies to long term solutions, like wind and solar installations.

"I would have taken $5 million or $10 million and said: 'we are going to subsidize you 50 percent. And, by the way, your electricity rates might go up a little bit.' So you are highly motivated to spend some of your dollars in adding the infrastructure that is going to provide free energy for 25 years."

The territorial government paid the power corporation an additional $20 million dollars last year to offset increased diesel costs, and to save ratepayers from larger bills. Bromley said he wasn't consulted last year, either, and is extremely disappointed with the territorial government, which is supposed to work by consensus.

"I am not sure how the public tolerates this leadership," says Bromley.

Bromley has been in office for eight years and is not seeking re-election in the fall's territorial election.

Statistics provided by the Northwest Territories Power Corporation show a decrease in power generation from the Snare and Bluefish hydro facilities in 2013-14 equal to around 5.7 megawatts. Diesel generators at Jackfish Lake made up the difference.

The new $29.7 million dollar subsidy will allow the power corporation to burn 29 million more litres of diesel than it would under normal water level conditions.