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Power Problems Spark Comment: One Man's Opinion

By Ben Meisner

Friday, September 15, 2006 03:45 AM

When MLA John Rustad spouted off this past week about the power problems in BC he must have had his head in his hand or worse yet.

The week before that, Paul Ramsey had waded into the issue by suggesting the former NDP had done a masterful job in looking after the interests of the people of BC with the Alcan, Kitimat deal. He also must have had his head in his hand or worse yet.

It was under the pen of Paul Ramsey that the “new deal” with Alcan was struck. In return for an announcement that the company would explore the idea of some new mills, (right at election time) the government would cut a new deal which would enable Alcan to sell excess power with no strings attached.

Remember the agreement Paul?

Well Alcan said they looked at a new plant and then dropped the idea in favour of selling more power through Powerex to the USA. Alcan lived up to their promise, they made an announcement they would study the idea, and you got elected.  You may also remember that the State of California took the matter to court saying they had been gouged through excessive power costs and had it rolled back. Now you will remember Paul that California won because you were Minister of Finance and you had to substantially cut the take from BC Hydro. 

Jobs were cut at Kitimat, pot lines shut down. Now finally the City of Kitimat had to jump into the action at this point, saying you're killing our city. Indeed they were right, but they had been long before been sold out by the Glen Clark government. So the NDP got dumped and who came to power? 

Well lo and behold, the Liberals.

Now the Liberals have been in office for five years John and it sure as hell doesn’t take five years to decide 1)you’re going to be short of power and 2) do something about it.

We now are, as you say, importing between 12 and 14% of the power that we need in the province. Did someone not stick a pin in the board oh back five years ago and say Gee! our population is growing, we are going to need more power , like site C , but come to think of it that one is too political now isn’t it?  So lets whack the people of Kitimat one more time and get the power from Alcan. They after all have the deal of the world for water so they can make lots of money on the backs of the people of this province, never mind the fact that the original agreement says, the excess power is to be used for "development within the vicinity of the works. 

Well Vancouver is in the "vicinity", maybe if you stretch it a bit, well maybe a whole lot.

So Alcan gets a contract with BC Hydro, the people of the province get paid a pittance for the water rentals. Now suddenly John jumps on board telling us how good the deal is.

You forgot to mention John. that you, the Province, also agreed to pay 50 million towards a cold water release, now will all the water that is freed up come down stream?  No you say, it will be diverted, allowing Alcan to make more power and more money.  Now that’s a good deal, the people of the Province pay to have Alcan make more money. 

So in the end, you’ve had 5 years and counting, if you couldn’t figure out that we were going to need some new power sources in that time, then you should pull out your grade two readers. The ball has been dropped on this one so many times it is bent out of shape and for both Ramsey and Rustad  to tell us how it really is should have the whole area laughing.

I’m Meisner and that’s one man’s opinion.

  


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Comments

The power situation between the NDP and the Liberals is much like the gambling situation. The NDP got the ball rolling on gambling in this Province, and when the Liberals got elected they fine tuned the process and now we have Casinos and Gaming facilities all over the Province. This in a Province where most people are opposed to Gambling, and especially opposed to the different levels of Governments making money on the proceeds.

There may be a shortage of power in BC however it has to be looked at in context to how much power is exported, and how much imported, and when this happens. The problem with the exports is, that under the Free Trade Agreement once you export it you have to maintain the levels. We are also exporting natural gas to the USA and when prices for power are high they use this gas to generate power.

Insofar as the power shortage goes, I am at a loss as to where the increase in power is needed. One must assume that it is in the lower mainland and in the Okanogan as it certainly is not in the Central Interior.

Some closures or reductions in power over the last 10 15 years.

Pulp Mill in Prince Rupert (Closed)
Noranda Mine and Granisle mine (Closed)
Endako Mines (Production downsized)
Alcan Kitimat (Production downsized)
Upper Fraser Sawmill (Closed)
Shelly Sawmill (Closed)
Netherlands Overseas Mills (Closed)
CN Rail (Severly Downsized)
Northwoods Lumber Treatment Mill BCR(Closed)
Two other specialty product mills BCR (Closed)

In addition to the Closures and Downsizing and Im sure I missed some, the following additional power has been generated.

Co-Generation plants at

1-Canfors Port Mellon Mill
2-Canfors PGPulp, Intercon, and Northwood Mills
3-Eurocans Pulp Mill in Kitimat
4-Big Co-Generation Plant in Williams Lake


There are others and in addition the Liberals say they have 38 proposals for more projects to generate more electricity.

So whos using the power??? Certainly not this area, and so this begs the question?

Why should the citizens of Kitimat lose between 900 and 1200 full time jobs, so that Alcan can reduce production of Aluminum Ingots and sell power for a huge profit, especially in view of the fact we have a agreement with them that in fact they cannot do this. That is the question.

If Alcan was not allowed to sell its surplus power it would continue to make ingots and create employment in Kitimat. To think otherwise in view of the cheap power they have available is ludicrous.

This is a scam pure and simple
"So whos using the power???" The Smelter and BC Hydro/Powerex.

"...especially in view of the fact we have a agreement with them that in fact they cannot do this." Alcan always sold some of the power, from day one. Kitimat townsite, Terrace, Prince Rupert and Stewart bought Alcan power - nobody objected. After the Alcan power was hooked into the BC Hydro provincial grid BC Hydro bought as much power as it could from Alcan, during ALL the different BC governments, NDP included.

Opinion250:"It was under the pen of Paul Ramsey that the “new deal” with Alcan was struck. In return for an announcement that the company would explore the idea of some new mills, (right at election time) the government would cut a new deal which would enable Alcan to sell excess power with no strings attached."

Now we have a situation with "no strings attached."

Indeed, we do.

I think that continuous previous power purchases (which may have been in some violation of the original agreement!) plus the 1997 agreement between Alcan and the province were all legal precedences and Alcan is essentially holding the clean end of the stick.

The 1997 agreement is easily found on the Internet and it does indeed bear Paul Ramsey's signature on the bottom of the last page.

He is perhaps treading on very thin ice by indignantly wading into the latest dust-up about Alcan, Kitimat and BC Hydro.



Terrace, Kitimat, Prince Rupert, Stewart, bought Alcans power through Hydro after the transmission lines were built., and I think we could agree that these towns would fall into the terms **within the vicinity of where the power is produced** We would have a hard time applying that to selling power to the USA.

The original intent of this agreement between the Government of the day and Alcan was to ensure that the power was used to make Aluminum Ingots and create jobs. It was not to be used to generate electricity to be sold for a profit. It matters not at all who it is sold to; Hydro, Powerex, BC Government whatever. The fact of the matter is that Alcan received vast amounts of land and actually reversed the Nechako Watershed to get the water to produce the electricity through the Kenny Dam and Kemano to produce Aluminum. End of story. They are not living up to the terms of the agreement, and therefore the City of Kitimat is taking the BC Government to court for overstepping its authority to make these agreements.

A few other mines that shut down in the last 10 years were Bullmoose, and Quintette, in addition the BC Rail line that ran from Chetwyn to Tumbler Ridge, ran trains on a daily basis that were electric trains. The power lines for these trains have been pulled out, and the electric diesel locomotive converted to diesel.

More power not being used and being funneled to somewhere else. The list goes on.

This is a huge money grab, and a thinly diquised scam and nothing more.
So did Paul Ramsey just open Alcans basement door and yell, "Scotty, we need more power?" Darn NDP.What a bunch of has been ninnies. I hope they never ever get elected again. Always the taxpayer of this province "getting the thrust"from any and all politicians.