Site C Power Project Cheaper than Alcan Deal

Monday, March 26, 2007 03:59 AM

Most of the propety in the foreground of this photo (in shadow) would be underwater if the Site C dam proceeds

BC Energy Minister Richard Neufeld says Hydro from the Site C dam on the Peace River, near Ft. St. John, would cost $50 dollars a MWH.

The Site C would produce 4800 GWH of power, about 10% of the provinces needs over the next 10 years.

That price to produce power is $29 dollars per MWH less than the deal between Alcan and BC Hydro. That is the deal the BC Utilities Commission rejected late last year as being too rich. They said in their ruling that Alcan could produce power at a published rate of $10 dollars per MWH and selling it for $79 was more than the province’s users should pay.

The deal was for firm power of 140MWH, although Energy Minister Neufeld has said the deal was only for 50 or 60 MWH’s

Alcan’s deal with BC Hydro for 44.22 cents per MWH is set to expire in 2014.

Alcan had said they would not build a new smelter at Kitimat unless they got the new agreement. A new smelter would employ 500 fewer people.

Critics have said Alcan stood to make 1000% on its investment if the power contract was honored. They also contend the hydro users of the province would be called on to pay more than one third more for their hydro electric power if the deal were approved. That subsidy they say would go directly into the pockets of Alcan at the expense of the population of the province.

Both BC Hydro and Alcan have appealed the BCUC ruling. No date has been set yet for the appeal hearing.

Meantime, BC Hydro is expected to soon present a report on the first stage of consultation which involved construction cost estimates.

Stage 2 is the consultation between B.C. Hydro and area stake holders including First Nations, municipalities, land owners and Alberta.

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Posted on Monday, March 26, 2007 03:59 AM in News by 250 News

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Comments

Posted by: giterdun on March 26 2007 7:49 AM

SITE C--CHEAP POWER AND LOTS OF JOBS CREATED.

ALCAN--EXPENSIVE POWER AND JOBS LOST.

WHAT ARE WE WAITING FOR ?? WHY ARE WE EVEN TALKING TO ALCAN. THERE IS NO CONTEST HERE.

Posted by: Parrothead on March 26 2007 7:52 AM

Just build it already

Posted by: lunarguy on March 26 2007 8:21 AM

The other thing is that nice cheap power from site C will continue for close to a 100 years. As a matter of fact it will get cheaper as the years go by even.

Posted by: Ragtop on March 26 2007 9:03 AM

With rumors out there that Brazil's CVRD are looking at Alcan maybe we as taxpayers should be looking at Alcan's $10.00 power. It is already built. Hows that for socialism.

Posted by: ammonra on March 26 2007 9:06 AM

What a nice bonus for Kitimat, and the rest of BC. Not only do we not get gouged for the electricity we use, but 500 people get to keep their jobs (and I bet Alcan STILL makes millions). The Provincial Liberals must really be looking out for us!!

Posted by: Andyfreeze on March 26 2007 10:18 AM

Build it.It has to come sooner or later and we all know that, even though we may not like it.
The people of B.C.owe Alcan nothing.In fact,they in turn actually owe the people of B.C.a lot.Alcan has had it their way for far too many years and our various governments and politicians can shoulder much of the blame for that.
There is however a big concern by many.How much of the Site"C" power will go to the U.S.? We know how it has been done in the past.Let's make damn sure the americans keep their hands off it!!!Do that and I would support it.

Posted by: Parrothead on March 26 2007 10:57 AM

It would only make sense to sell power via PowerEx at a profit if the market is available during peak hours, then buy back during off peak hours from suppliers that can't shut off the turbines like in Alberta. That system actually keeps the prices lower for British Columbians. The issue is that we are now importing more than we export, which can cause net losses for BC Hydro and through it, us. Of course, if States like California renege again on deals made and refuse to pay PowerEx after using the power, they should have their lines cut off from us.

Posted by: Zar on March 26 2007 12:50 PM

BC still makes money on the exporting deal, despite being a net importer. It sells high in the daytime during peak power demand and buys back (relatively) lower cost energy (refilling the reservoirs) during the relatively cool summer evenings down south.

Conservation, LED light bulbs and such,are being implemented in the states. This should contribute to slowing increasing demand.

Tidal, wave, geothermal and small scale hydro should be a big part of North America's future too.

Posted by: owl on March 26 2007 1:30 PM

It looks like agriculture in part of the Peace is out, and Aquaculture is in.

;-)

I say build it. It is relatively clean power and we will have another place to build cottages with docks that float up and down with the water level.

Posted by: Mcfly on March 27 2007 9:10 AM

Stock it with fish, and build a lodge.
Can make cash off the power and tourism at the same time.
Or start a rumour that the lockness's brother lives in it, and get tourism up that way...be inventive folks.

Its going to happen, lets face it the government will find a way to push the deal through.
So make the best of it I say...and really its a good way to make lots of cheap power.
And all you reading this have your computers on right now...yes, without hydro it would be tough to turn that computer, light, tv, etc on now wouldn't it folks.
I personally like the idea of modern electrical appliances, and not endearing the idea of going back to the caveman lifestyle....lol

Posted by: diplomat on March 27 2007 4:34 PM

"...but 500 people get to keep their jobs..."

???

The new smelter, as planned, would employ 500 fewer people while increasing production and decreasing pollution (by 40%).

Even if all the electricity produced in Kemano would be used for a slightly bigger smelter there would still be a reduction in jobs of about 350 employees.

There is also the question of markets for all that extra aluminum. Many countries have added new capacity and some are in the process of building completely new smelters.

The answer of course is new secondary industry for Kitimat, secondary industry that uses primary aluminum and power and creates new jobs to replace the ones that are eliminated by new technology.

Perhaps everybody should stick their heads together and work towards a positive outcome of this nature.

The present confrontational attitudes are losing ones.

Posted by: scotty_855 on March 28 2007 6:59 AM

The Peoples Republic of British Columbia should nationalize the dam and smelter. That will show the world that we mean business. It will also show private enterprise that profits aren't allowed in BC !