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ANNUAL REPORT 2004/05 Powering people and our communities 0652-155 OFC AND OBC.indd 3 9/16/05 8:44:54 PM > Powering People and Our Communities Contents 1 Our Vision 2010 2 Message from the Chairman 3 In Memoriam - Ted Humphrys 4 Message from the President & CEO 6 New Hydro Development Opportunities 8 Employee Appreciation 9 Community Investment 10 Management’s Discussion & Analysis Fort McPherson, rising from 16 Management’s Responsibility for Financial Reporting the ashes 17 Auditor’s Report Over 2004/2005, NWT Power Corporation 21 Financial Statements & Notes completely rebuilt the Fort McPherson power 34 Consolidated Financial Summary plant which was destroyed by fi re on the night of 35 Directives January 19, 2004. After quickly restoring power 36 Directors and Offi cers to the community, the Corporation turned to the job of reconstructing the plant. A team of NWT Power Corporation staff and 38 contractors and sub-contractors rebuilt the plant and brought it back into operation in early 2005. The offi cial opening of the new upgraded, state-of-the-art plant was held NORTHWEST TERRITORIES POWER CORPORATION ANNUAL REPORT 2004/05 in late March 2005. > Our Vision 2010 1 Mandate It is the responsibility of the Corporation to generate, transform, transmit, distribute, deliver, sell and supply energy throughout the Northwest Territories on a safe, economic, efficient and reliable basis. 25kv Upgrade of Inuvik Substation - Vision Mission Values Summer 2005 • We will provide environmentally sound, Position the core business for future We will endeavour to: safe, reliable, cost-effective energy sustained, profitable growth through: • Be cost effective in the utilization and related services in the territories, • motivating and securing alignment of all resources, always remembering resulting in recognition as the best and support of all employees to the that we are spending the customer’s managed utility in Canada. Corporation’s future strategy; money. • We will be profitable and financially • implementing 1 or 2 significant growth • Strive to increase shareholder value in strong, following sound business opportunities for the core business, the long term. practices and providing an economic adequately resourced; return to our shareholder. • Be responsive to our customers and • improving organizational efficiency and their changing needs. • We will be a great place to work effectiveness; NORTHWEST TERRITORIES POWER CORPORATION ANNUAL REPORT 2004/05 - innovative, proactive, and driven to • Act ethically and honestly, treating meet expectations of our shareholder, • gaining the support of key employees, customers and others with customers and communities. stakeholders, the Board, Shareholder, fairness, dignity and respect. Aboriginal peoples, and our • We will be a major contributor, working • Commit to the safety and development communities, for growth; and with partners, to the development and of our employees by balancing the change initiatives; operation of new energy resources in needs of customers with the needs of ways that meet the North’s unique • strengthening our customer base— our families and ourselves. offer solutions to rate structure and environmental needs. • Respect and protect the environment in payment issues, provide quality all our activities to ensure a sustainable customer service. environment for the NWT. • Communicate in an open and timely manner. 2 > Message from the Chairman This past year has been a good one for both The Board of Directors is working to not only I wish to extend my thanks and appreciation to the NWT and the Northwest Territories Power meet the North’s immediate needs for safe, the Board of Directors, management and staff Corporation (Corporation). The North’s reliable power, but to building a successful of NTPC, NTEC (03) Ltd., and Sahdae Energy economy continues to flourish, driven by the Corporation that meets the directions set by our Ltd. for their commitment and hard work over approval for construction of a new diamond Shareholder as well as our own expectations. To the last year. Together we continue to move mine and continued work on the Mackenzie this end we have continued our work to develop towards the achievement of our goals. Valley pipeline. All the communities we serve the North’s hydro potential with a view to have been impacted by the increased level serving the expanding diamond mines and the of economic activity. While the Corporation gas pipeline. With our partners and operating responds to these demands we are also looking through our wholly owned subsidiaries we have Richard Nerysoo to the future to ensure a safe reliable power continued our efforts to develop viable hydro Chairman infrastructure for the North. projects on the Taltson and Bear Rivers. We are active participants in the pipeline permitting Leading the way is our dedicated staff process to ensure the Corporation can meet of employees. Their commitment to the the needs of its existing customers, and that Richard Nerysoo Corporation and its customers is clearly we and our partners can take advantage of any Chairman illustrated by the response to a devastating opportunities for growth. fire at one of our isolated diesel plants. A new power plant was completed in one year in Fort In addition to providing growth opportunities McPherson to replace the plant destroyed by for the Corporation and its aboriginal partners, fire in 2004. While staff worked to complete if successful, new hydro development will this project they continued to provide all provide more diesel communities with access to the customers with excellent service while lower cost hydro generation in the long term. maintaining the high priority on safety for both The Board and Shareholder both see a strong NORTHWEST TERRITORIES POWER CORPORATION ANNUAL REPORT 2004/05 employees and the public. growing economy in the NWT. The Board sees the need for NTPC and its subsidiaries, NWT Energy Corporation (03) Ltd and Sahdae Energy Ltd. to position themselves to be significant benefactors and participants in this growing economy. These times require us to undertake strategic decisions and calculated risks that will allow us to realize these opportunities. >In Memoriam 3 Mr. Humphrys’ associations with electric become Senior Electrical Advisor in the federal power in northern Canada dates from the Department of Energy, Mines and Resources; creation of the N.W.T. Power Commission and during which he retained an association with commissioning of the Corporation’s first hydro the NCPC as advisor to the Chairman of the plant (Snare Rapids) in 1948. The N.W.T. Power Commission. Commission activities extended to the Yukon In 1993, the Snare Rapids Hydro Plant was Territory in 1950 and its name was changed dedicated the Ted Humphrys Power Plant in to the Northern Canada Power Commission recognition of his then 45 years of association (NCPC) in 1956. with the development, production and Mr. Humphrys earned his B.Sc. in Electrical distribution of electric power in the North. E. W. (Ted) Humphrys Engineering from the University of Manitoba in (1913-2005) 1935 following preliminary study in Mechanical Engineering at the University of Saskatchewan. Chairman Emeritus to the NTPC After work in Saskatchewan operating a small Board of Directors The main turbine, inside the electrical utility and electrical contracting Ted Humphrys plant at Snare Mr. Humphrys was a technical advisor to the business, he gravitated to wartime employment Rapids, can generate 8 MW Northwest Territories Power Corporation Board with the Inspection Board of UK Canada in of electric power. of Directors since the Corporation’s inception in Ottawa. In 1948, he joined the N.W.T. Power 1988; and to the predecessor, Northern Canada Commission as its first engineer, subsequently Power Commission during the 1970’s and ‘80’s. becoming Chief engineer and general manager. In 1969, he resigned from the NCPC to Ted Humphrys and his wife Ruth. NORTHWEST TERRITORIES POWER CORPORATION ANNUAL REPORT 2004/05 The main hydro site at Snare Rapids is the furthest upstream facility on the Snare River. Commissioned in 1948, the plant is named after the late Ted Humphrys. The plant contains two turbines, a main 8 MW generator and a smaller 500 KW turbine that is utilized only during high water periods. 4 > Message from the President and CEO Introduction We finalized new planning criteria for all the way to go to fully meet these expectations, The 2004/05 year has been another successful communities we serve which will ensure our 90% of customers believe we are providing year for the Corporation, its customers, continued reliability. satisfactory or better service in one of the most employees and shareholder. This success is difficult operating environments in Canada. measured in the following ways as we continue Environment our efforts to increase our efficiency and The environment continues to be a focus for Financial Performance effectiveness in all areas so that we can provide the Corporation in its operations. During the The Corporation’s activities continued to be better service to our customers. year we adopted an ISO 14001 compliant centred on two areas during 2004/05, our Environmental Management System and will regulated operations of providing power Safety begin training and implementation under the in the NWT and the development of hydro Leon Courneya, FCA We have been able to maintain our emphasis plan in 2005/06. The Corporation has continued projects. Net income of $6.4 million was down President & CEO on employee and customer safety. After to be successful in maintaining greenhouse $0.8million from 2003/04 due to an increase in experiencing 5 lost time accidents in 2003/04 gas production at 37% below 1990 levels. We hydro development expenses. Despite the drop we were successful in operating all of 2004/05 eagerly await more details from the Federal in net income, the Corporation maintained its without a lost time accident, bringing our total, Government on how the plan for Canada to dividend to its shareholder, the Government of as of the date of this message, to 20 months reach its emissions targets will operate and the Northwest Territories (GNWT), at 95% of with no lost time accidents.
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