January 30, 2008

VANCOUVER - The B.C. Utilities Commission has approved a deal to allow Alcan to sell surplus electricity from its Kitimat power plant to B.C. Hydro.

It's the second version of the agreement, after the commission rejected an earlier deal last year, saying it wasn't in the best interests of the province.

Hydro CEO Bob Elton says the new deal will see customers benefit from a long-term contract and reasonably-priced electricity that will help meet the growing demand for power in B.C.

Hydro says the agreement gives the utility a supply of clean energy running to 2034, with the power delivered at fixed prices, reducing Hydro's exposure to the volatility of market prices.

However, the town of Kitimat remains opposed to the agreement, saying Alcan is selling power instead of preserving jobs at the aluminum smelter in the town.

The B.C. Court of Appeal has reserved judgment after Kitimat appealed a lower court ruling last year which said there's nothing in law preventing Alcan from selling power to Hydro, or having any minimum requirement for smelter production in Kitimat