Customers Left to Pick Up the Tab

By 250 News

Energy Minister Richard Neufeld says  had the BCUC approved a new  contract between  Alcan and B.C. Hydro , the BC Hydro customers would have been called upon to pick up the difference in the cost of the old contract and the new one.

The British Columbia Utilities Commission  rejected the new contract saying BC Hydro should have made a deal with Alcan based upon what it costs that company to produce power. Instead they took a 2006 power call for proposals and used that figure as a bench mark. According to critics of the agreement, the deal would have given Alcan a mark up of over 1000 %on the power they produce.

Both Alcan and BC Hydro have filed appeals into the BCUC decision. Recently in an interview with 250 News, Premier Campbell said the province will not appeal the decision of the board. Both Alcan and BC Hydro say some of the facts in the new agreement were not represented correctly and they are appealing the decision.

Neufeld says that if a new smelter were built,  the amount of power that would be available to BC Hydro is estimated at between 50 and 60 MWH, which is not significant in the total requirements of the province. Under the new agreement reached by Alcan and BC hydro, Alcan would receive $79 dollars a MWH, under the existing contract that price was $44.22 and critics say that amounts to the consumers of BC subsidizing the company by more than 1 billion dollars.    

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