Hay River, N.W.T., council puts off power distribution contract decision
Town needs information from Northland Utilities on infrastructure costs before proceeding, says mayor
The town council of Hay River, N.W.T., says it needs more information before it can decide who will get rights to distribute its power.
The town put its power distribution rights out to tender in May. Last night council discussed it openly for the first time.
Northland Utilities owns the power infrastructure in the town, such as the power lines and the diesel plant. Many councillors said they need to know how much those assets are worth before they can make a decision.
Mayor Andrew Cassidy said the first step is to approach Northland Utilities and ask for its numbers.
"As part of the franchise agreement, if we do not agree to those numbers, there is a mechanism to go to a third party arbitration between the town and Northland Utilities," he said.
"So Northland has said they're not necessarily a willing seller. We have to approach them and ask what the selling price for the assets are and then we would have to go from there."
The Northwest Territories Power Corporation and Flash Point Facilitators are the other companies bidding on the contract.
Hay River's existing contract with Northland Utilities expires in November 2016. Cassidy says that gives the town council plenty of time to decide which company is offering the best value.