Phil Melynchuck at Maple Ridge News:

Some quick facts for you:

Typically about one third of the electricity revenues received by a run-of-river IPP is paid back as taxes and levies to local, provincial, and federal authorities.

The construction of a recent 7 MW run of river hydro project required an investment of $15 million, created 90 jobs, and paid $ 639,000 in provincial taxes and $537,000 in federal taxes (BC Stats econometric input/output, March, 2006).

Each year a typical 7 MW run-of-the-river project with a penstock that produces 35 GWh/yr will pay $67,000 in water rentals and $120,000 in property/school taxes (or $200,000 if located in a municipality rather than a Regional District), plus First Nations/Community Benefits payments, plus Provincial and Federal Income Taxes.

A 10 MW run of river project built in 2003 will pay about $20 million in direct taxes, fees, water rentals, and community benefits over the life of the project.

There are a few dozen more Quick Facts at http://www.ippbc.com/quick_facts_list/

Steve

-----Original Message-----

From: Editorial - Maple Ridge News [mailto:pmelnychuk@mapleridgenews.com]
Sent: Thursday, February 01, 2007 2:33 PM
To: Steve.Davis@ippbc.com
Subject: IPPs

 

Mr. Davis:

I'm a reporter at the Maple Ridge News and I'm following up on a meeting on IPPs last night involving both our MLAs.

Some claims were made -- particularly regarding low charges or revenues flowing back to province from IPPs while profits are huge. Could you respond to that? The fees such as water licence, capacity charge and water rental seem low. Are they?

As well, once contracts expire, will IPPs be free to sell the electricity on open market?  Is it accurate -- that B.C. Hydro will pay $87 per megawatt hour for IPP power (Run of River) while the water rental rate is $1.08 per megawatt hour??

Do IPPs take possession of Crown land for their generation sites?

Thanks very much for your help.

Phil Melnychuk
Reporter
Maple Ridge News
604-467-1122