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6TuesdayMarch102015INDUSTRYTELECOMMUNICATIONSByMEAGANWOHLBERGWorkunderwaytoxabrokenturbineattheSnareFallspowerplantintheNWThasexposedalistoffurtherproblemsthatcouldtakeuptohalfayeartoxaccordingtotheNTPowerCorp.NTPC.AbearingbrokeatoneofthefourplantsontheSnarehydrosysteminmid-Februarythrow-ingYellowknifeintoblacknessandthrustingthealreadydehydratedcommunityontomoredieselatanadditionalcostof40000perday.NowuponfurtherinvestigationitappearsthebustedbearingisjustthestartofrepairsrequiredatSnareFalls.Latelastweektheplantwaspartiallyde-wateredbelowtheriverwaterlevelinordertodoamorethoroughinspectionofthetur-bineandthatinspectionrevealedcracksinsomeoftheturbinebladesNTPCreportedlastMonday.Thediscoverymeansacompletede-wateringisrequiredattheplant-somethingnormallyreservedforthesummermonthsduetothedif-cultyposedbyice.Diverswererequiredtosealthechamberoverseveraldayslastweekbeforebeingabletoperformacompleteinspectionofthelowerchambertodeterminetheextentofthedamageandrepairsneeded.NTPCengineerswillnowworkwiththeturbinemanufacturertodecideiftheturbinecanberepairedorifacompleteoverhaulisre-quiredtogettheplantupandrunningwithareasonableexpectationofitnotfailingagainaccordingtothePowerCorp.Acompleteoverhaulwouldrequireafourtosix-monthshutdowninwhichcasealladdi-tionalfuelcostswillbeabsorbedintoacapitalprojectspreadoverthelifeoftheplant.Suchanoverhaulwasscheduledforthesummerof2016.IfitcanbexedmoresimplyNTPCsaysre-pairscouldbedonebytheendofthemonth.Fortunatelyifashort-termsolutionisthebestcourseofactionthepartsweresentoutforrefurbishingwiththebearingandwillbebackinveorsixdaysaccordingtoNTPC.Thisplanwillincreasethecurrentrepairtimebyabout10daysputtingtheunitbackinserviceabouttheendofMarch.Anincreasedcostestimatewillberevealedoncetheextentoftherepairisknown.RepairsatSnarehydroplantcouldtakeuptosixmonthsINDUSTRYHYDROByMEAGANWOHLBERGNorthwestelcustomersinNorthernCanadacouldseebetween10to30percentknockedofftheirresidentialinternetbillsbyearlyMaythankstoarulinglastweekbytheCa-nadianRadio-televisionandTelecommuni-cationsCommissionCRTC.TheCRTCissuedarulinglastWednesdayrequiringNorthwesteltoloweritsratesforcertainresidentialinternetservicesby10to30percentdependingonthepackagewithasignicantreductionshowinguponcli-entsbillsbyMay42015.Althoughwerecognizetheexceptionalsitu-ationthatexistsinNorthwestelsterritorywemustnotletthesechallengeshinderthedevel-opmentandaffordabilityoftelecommunica-tionsservicesintheNorthCRTCchairmanJean-PierreBlaisissuedinanewsrelease.Accesstoreasonablypricedinternetser-vicesplaysanessentialroleintheNorthseconomicandsocialdevelopment.WiththisdecisionwearereducingthegapbetweenwhatconsumerspayforinternetservicesinthenorthernandsouthernpartsofCanada.Thoughthedecisionmeanslowerratesforallresidentialcustomerscertainclientsarepoisedtobenetmorethanothers.DSLIn-ternetLiteandDSLInternet2packageswilldropby10percentwhileDSLInternet5andDSLInternet15willbeloweredby30percent.Northwestelisalsonolongerabletochargeadditionalfeestocustomerssubscribingtointernetservicesoutsideofabundlewithtelephoneservices.AswellCRTCistakingactiontolimitaddi-tionalchargesplacedonresidentialcustomersCRTCforcesNorthwesteltolowerinternetrateswhogoovertheirmonthlyusageallowance.AsofFebruary2016thoseadditionalchargeswillhavetodropbyatleast0.50pergigabyte.Northwestelsrateswillnotbeallowedtoincreaseuntiltheendof2017attheearliest.TheJournalreachedouttothecompanyforcommentbutreceivednoresponseasofpresstime.RulingpartofongoingreviewLastweeksrulingispartofastringofchangestheCRTChasdemandedfromNorth-westelsincereviewingthelackofcompeti-tionintheNorthwhereNorthwestelholdsamonopolyovertelecommunications.In2011theCRTCrequestedthecompanydevelopaplantoaddressconcernsaroundlimitedcompetitionandmodernizeitsout-of-dateinfrastructure.Theresultofthereviewwasarulingforc-ingNorthwesteltoopenupaccesstoitsbackbonetelecommunicationsinfrastruc-tureintheNorth.Previouslythecompanyhadbeenabletochokeoutcompetitionbychargingexorbitantwholesaleratestootherinternetserviceproviderswantingaccesstotheirbre.WiththisdecisiontheCRTCiscontinu-ingtoensurethatCanadiansinNorthwestelsoperatingterritoryincludingthoseinmanysmallandremotecommunitiescanpartici-pateinthedigitaleconomyandcontributetotheNorthseconomicdevelopmenttheCRTCremarkedinlastWednesdaysruling.Thecommissionaddedthatitwouldbestartingareviewintobasictelecommunica-tionservicesacrossCanadawithinthecom-ingmonthsinordertoimproveaccesstoadvancedandcompetitivecommunicationsservicesforallCanadians.DissentingcommissionerdoubtssavingsStillsomearentsuretheloweredrateswillresultinloweredcosts.AdissentingopinionsharedbyCRTCCommissionerCandiceMol-narcastsdoubtontheimpactsoftheruling.ShesaidsomeinternetpackagesarealreadypricedbelowcostandthusNorthwestelwillndwaystomakeupthosecostsonthebacksofNorthernconsumersratherthanshareholders.HowNorthwestelwilloffsettherevenuelostthroughthemandatedpricereductionsistobedeterminedbutIhavelittledoubtthatthecostoftheMajoritysdecisionwillbebornebyNorthernconsumersshewrote.AlthoughtheMajorityexpresstheviewthatthepricereductionswouldnotsigni-cantlyimpactNorthwestelsrevenueormod-ernizationplanIquestionthisconclusion.Therevenueimpactofthepricereductionsisnotinsignicantandisrecurring.ThereisnoreasontoexpectthisimpacttobebornebyNorthwestelsshareholders.MolnarsuspectsNorthwestelwilleitherreduceitscapitalinvestmentinlessprot-ablehigh-costservingareasordelayele-mentsinitsmodernizationplan.WhatevertheoutcomeitwillbetelecomserviceusersintheNorthwhowilllivewiththeconsequencesshesaid.FilephotoNorthwesteladdressesaCRTCpanelduringhearingsonthecompanysmodernizationplanfortheNorthin2013.RepairsareongoingontheSnaresystem.PhotoNTPC