Premier Gordon Campbell says the Province of BC will not appeal the ruling by the British Columbia Utilities Commission  against an agreement between Hydro and Alcan that would see increased hydro rates under a new contract in return for the development of a new smelter in Kitimat.

Premier Campbell said Friday in Prince Goegre he still believes that a new smelter is a good idea for Kitimat even if it employs 500 fewer workers. He said "We have to look down the road 20 years from now, and the aluminum business is very competitive, but having said that the province will not in any way interfere with the BCUC ruling." 

 “I could have simply written them a letter saying you are a body of the government and you are to approve the deal “. We did not; I am not in the pocket of Alcan."

 

If Alcan and BC hydro want to appeal the BCUC ruling then they can, but the province will not be a part of that process. “If the deal is going to pass he concluded, then it must pass with the BCUC."

 

The Premier said he had not read the entire decision of the BCUC in which the commission said that the deal negotiated between Alcan and BC Hydro was not in the best interests of the people of BC. The commission said that it was their feeling that BC hydro could have negotiated a much better deal.

Under the proposed agreement an old contract would be re negotiated, the new contract, according to opponents of the deal, would give Alcan a billion dollars in subsidies by increasing the amount of money they would receive for hydro delivered to BC Hydro.

Under the agreement that Alcan and BC hydro sought approval for, the rate for power would increase from $44.22 a MWH to $79 dollars a MWH. Alcan says the new deal is needed in order for a new smelter to be built in Kitimat. That new smelter would employ 500 fewer people but would be a state of the art facility. Opponents say that the users of electricity in the province would be called upon to subsidize Alcan upwards to $1 billion dollars during the contract in order to have a newer  smelter built.