VANCOUVER – BC Hydro today filed notice of its intent to seek leave to appeal a recent B.C. Utilities Commission (BCUC) order denying acceptance of a Long Term Energy Purchase Agreement (LTEPA) with Alcan.
On December 29, 2006, the BCUC issued an order rejecting a LTEPA filed under section 71 of the Utilities Commission Act which laid out the terms of a multi-year energy purchase agreement between BC Hydro and Alcan. The BCUC has not yet issued its detailed reasons for rejecting the contract. However, today's filing is to meet statutory timelines so as to preserve BC Hydro's right to appeal the Commission's order to the court.
BC Hydro continues to believe that the LTEPA with Alcan represents a sound market based contract that provides a firm supply of power to help meet the growing demand for electricity in B.C.
Contact: Elisha Moreno, Media Relations manager
Phone: 604 623-4099
elisha.moreno@bchydro.com
Alcan to appeal BCUC verdict
Canadian Mining Journal 2007-01-23
The appeal must be filed by the end of January
Alcan Inc will appeal a decision by the British Columbia Utilities Commission (BCUC) to reject an energy deal between it and the British Columbia Hydro &
ower Authority.
The Long-Term Energy Purchase Agreement between the two companies was rejected in a December 29 ruling from the BCUC but its confirmation was one of three conditions laid down by Alcan before it would green light an expansion project at its Kitimat smelter.
Commenting on the decision to appeal the verdict, Michel Jacques, president and chief executive of Alcan Primary Metal Group, said he believed the BCUC "erred" in rejecting the deal.
Although the firm details of why the deal was rejected have yet to be released by the BCUC, Alcan must file its intention to appeal before the end of January.
Following the receipt of the detailed BCUC ruling, Mr Jacques said Alcan will "examine them to better understand the Commission`s rationale" before refining and completing its grounds for appeal.
In the December ruling, the BCUC said the contracts were "not in the public interest and are wholly unenforceable."
The agreement would have allowed Alcan to sell as much as 380 Mw of power to BC Hydro in Kitimat for the next 20 years.
The town, however, opposed the agreement, saying it would allow the company to sell power back to BC Hydro consumers "at over a 1,000% profit."
The other two conditions Alcan placed on the Kitimat smelter expansion were that it gained the necessary environmental permits and also that it agreed a long-term labour deal with the Canadian Auto Workers Union, which represents the Kitimat workforce.
In August, Alcan said it planned to open some new capacity at Kitimat in 2009 with the rest to start by the end of 2011.
Aluminum production from the plant was to rise 63% to 400,000 t/y, boosting global output by more than 4%. Kitimat was to use almost all of the electricity generated by Alcan`s Kemano hydroelectric plant. (January 23)
