BCUC Wants To Know Why BC Hydro Is Prepared to Pay More For Non Firm Hydro Power From Alcan

By 250 News

The British Columbia Utilities Commission has written BC Hydro asking why, in some scenarios the price of Non firm hydro is more expensive than firm prices in the new application by BC hydro to obtain electricity from Alcan?

Erica M Hamilton, the Commission Secretary for the BCUC has asked that BC Hydro provide the answers by November 11^th.

Firm power is the power that is delivered under contract and, for the most part, has always commanded a much higher price than non firm energy which is typically produced by the producer (in this case Alcan) when they have a surplus of water or power that they don’t require for other purposes.   Non firm  power is not guaranteed under contract,  it is  normally cheaper  because it amounts to selling off  the leftovers.

The BCUC says the proposal by BC Hydro leads to the odd result that non firm hydro prices are actually higher than firm prices in some scenarios in the proposal.

The BCUC originally turned down the proposed agreement between BC Hydro and Alcan saying that Hydro was prepared to pay too much for the power they were obtaining from Alcan.

The provincial government said at the time it would not interfere with the process and Alcan and BC Hydro have now returned to the BCUC seeking a new deal.

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