Although I couldn't stomach reading the reports full details, it has become apparent Rio Tinto and BC Hydro are equally committed to making Kitimat the first official Northwest ghost town. This deal reflects the power of big business and the lack of power of the current political administration and the so called Utility Commission. Many people views of this transaction will differ from mine but only time will tell of the negative impacts, where later you can recollect these fine words " I Told You So". Fact, Rio Tinto/Alcan is in business to sell power in other locations than its Kemano/ Kitimat operations. Fact, its cheaper to operate in other countries. Fact, RT insisted that modernization is not a part of the agreements proceedings. Fact, one condition of modernization was a long term deal with the CAW union. This was a fatal flaw for CAW, but a promising deal for its future Alcan pensioners. CAW attempted to negotiate a better deal, but failed. They succeeded in securing five more years of employment or a payout. Why didn't members insist on negotiating a Long Term contract until 2034? Rhetorical question, never mind. I predict a 5 year delay on modernization will be announced, supported by some pathetic reasoning to justify it. Why would RT spend $2 Billion on modernization if they didn't have too, Would you? RT claims to be committed to the community but yet wouldn't commit to that in the agreement. Nonetheless, I must thank the DoK (District ok Kitimat) and Mayor Wozney for maintaining the embroiled battle as long as they could. The mouse unfortunately was whisked away in the eagles talons. To those people who insisted that the citys' battle was giving Kitimat or the region a bad rep for future business ventures, give your head a shake. First of all, since 1970 only one new industry was developed in Kitimat and has disappeared. The other 2 major employers have diminished their employee rosters and will continue to do so, one may shut down entirely. Those small industry supporters will soon have nothing to support, neither for Kitimat support industries or Terrace's. I refer to the Terrace mayor who also was of the notion that the DoK should back off. Has he forgotten how many of his residents are employed or are supporting Kitimat industries? I wonder if the mayor is at all concerned about the two major industries that packed up in Terrace? I hope I'm wrong with my assessment of RT, only time will tell.

I THINK THAT YOU ARE RIGHT ON THE MONEY PISSPULPER..IN ADDITION TO THIS, THE 'MANUFACTURED BY ALCAN' FLOOD SENARIO THAT WE ARE EXPERIENCING WILL ONLY STRENGTHEN THEIR BID TO REVISIT THE KEMANO 2 PROJECT. THEY WILL GAIN MORE POWER FROM THIS AND DESTROY THE KENNY DAM RESEVOIR IN THEIR QUEST TO CONTROL POWER IN N.W.B.C. MARK MY WORDS..THIS IS THEIR AGENDA,AND IT WILL HAPPEN UNLESS THE PEOPLE STAND UP TO THEM AND SAY NO!

Actaully RT has already issued a number of contracts for the destruction/removal of existing buildings. They will now announce the upgrade with the favourable power contract in place. By the way what business isn't doing more with less? It's what increases our standard of living.

Removing dilapidated, non-functional existing buildings doesn't ensure modernization. Also I would gather that in the fine print of those contracts, it is also underwritten that the contract can be revoked at the convenience of RT at any moment. Paying out several $ million in default penalties is just a minor irritation compared to $1.98 billion + power sales profits that will pad the shareholders portfolio.

"By the way what business isn't doing more with less? It's what increases our standard of living"

Hmm, in economic terms, I can't comprehend how this has or would do anything in regards to increasing our standard of living. Perhaps what you meant was that more profit is in it for the corporation/ business entity. I have found through experience,when business tries to do more with less, the end result is I worker harder for the same pay. Others philosphers in the workplace call this "multi-tasking". Employing less people is detrimental to increasing our standard of living, if you factor in all the variables. I don't mind working hard, i'd just prefer to well paid when I do.

Don't get me wrong, I hope the RT venture will commence as promised and continue to support the local economies of the Northwest. Another industry closure will only impact the bleak outlook already.

"the Utilities Commission approved a revised deal that will save Hydro customers between $65-million and $120-million dollars between now and 2034."

Am I to take it, then, that my Hydro rates will go down, because that is the only way I can save as a customer?

Or, is expressing it that way flim flam to hide the fact that the price paid for the electricity is still too high, so they focus on a minor lowering of the cost compared to the original and claim it as a saving when it is still a large increase?

I also noticed this item in section 5.7:
"There are also an option fee and an exercise fee to carve out additional electricity for sale to third parties
in the event that the Modernization Project does not proceed, both of which are payable by Alcan. "

Don't you just love these 150 page documents which contain masses of superfluous verbiage, almost as if the purpose is to make you lose any sense of comprehension about the contents.

I completely agrre pisspulper and we should also never under estimate the role the B.C.government plays in all this.
This is a big one, and not just for northwestern B.C.
The overall implications are much bigger.

Alcan cannot sell more power to Hydro than what it already does because of the limited capacity of the existing power line between Kitimat and Terrace. If a second power line is seen being built then capacity can be increased. If that is ever done then worry about the future of the smelter.

Wasn't it 174 pages :0 I just skimmed here and there, too much drivel. It is amazing how much Schlit slinging goes on. As for rates going down, if i remember correctly, wasn't the Province suggesting a week ago BC Hydro would be raising rates to 2 or 3 times what we currently pay, with some form of threshold that would be the basis of the surcharge. Residential customers only? Now of course this was to encourage us to save energy or freeze to death. Justing noting the impecable timing of both announcements, well orchestrated.

Good point Seamutt. I fear that with our new proposed rate system, we will be financing that endeavour. Now couple that with RT's right to also sell surplus to a third party, not BC Hydro, they only have to manage their commitment to Hydro, I could think of some buyers who would finance some power poles. And as Giterdun pointed out, Kemano 2. How long before that gets re-approved? Would eliminate Site C discussion, might even have some room for Kemano 3 seeing as though global warming has been good for snowpack and run-off levels lately and PG residents don't care so much for wet basements.

This morning's CBC interview with Mr. Henning (representing RT/Alcan) outlined what RT is committing to: Replacement of the old smelter with a new more energy efficient and less polluting one. Some time ago a contract was signed with a company which is producing the required new electrical substation because it will take 22 months to manufacture and RT needed to have it ready in time for the new smelter.

After the new smelter is in operation it will be RT's most efficient and least polluting one with the latest most advanced smelting process in place.

It will require 40% less power and it will reduce emissions by 40%.

Kitimat's future is ensured for another 55 years or more.

Albeit I missed the interview by Mr. Henning, his retoric and representation for RT/Alcan has been heard by the community for several years now. We or I am quite aware of the new modernized plants capabilities, whether it is in operation for 55 years or even 5 remains an uncertainty. Nobody has issues with the new smelter, Kitimat of course needs the smelter, the issue at hand was the manner in which the conglomerate achieved its end result with the power sales issue. The peeve here is that as market conditions could feasibly or conveniently close the smelter at a whim, RT still has the right to continue using the water rights to generate profits yet is not obligated to share that wealth with the real owners. But theres nothing wrong with that I suppose. Is there?

If I was the king, BC Hydro would be the managers of all BC watershed hydro resources. This idea of privatizing our hydro resources and allowing multinationals to control our rivers for obscene profits and disregard to the local economy (& PG Flooding) has to stop. Obviously our current governmetnt works for the multinational banking elite and not for the citizens of BC.

Why couldn't BC use its vast hydro resource as a provincial entity to negotiate cheep power deals for actual investments like Quebec does successfully and I might add to the benefit of their citizens?

Is it simply because Northern BC has zero political clout and thus is an easy place to sell our rights for vote buying in the Lower Mainland in addition to the campaign favors of the multinational elite?

"...the issue at hand was the manner in which the conglomerate achieved its end result with the power sales issue.'

Apparently Alcan has been selling power for many decades to BC Hydro (or its PowerEx offspring) and every successive B.C. government eagerly bought every spare kilowatt hour.

"But theres nothing wrong with that I suppose. Is there?"

Well, there is plenty that could be better, but it has been not right for so long and contracts were entered into long ago that legitimized whatever should not have been allowed to occur in the very beginning when the B.C. Liberals were not even in existence.

"Obviously our current governmetnt works for the multinational banking elite and not for the citizens of BC."

All the previous governments must have been working for the banking elite as well.

Hmmm.

Do you suggest expropriation?

Can we say "Social Credit" and "Whacky Bennett",because it is starting to look and smell the same.

Eagleone, you seem to be on par with most of the Northwest, although I do feel we benefit from lower rates due to Kemano and other hydro-electric facilities. Diplomat, you on the otherhand seem to have a differing opinion, almost jusifying what is taking place, although it appears you misunderstood or misread most of my opinions. Graciously I will accommodate and single finger plunge the keys slower. I have no issue with RT/Alcan selling power to BC Hydro (Powerex). Referring here to the power that is currently obligated to be provided to BC Hydro. Any power that is surplus energy beyond that can be sold to whomever. The issue at hand again is that the extra surplus available is still enormously profit generating and portions of that should have been allocated to maintenance and upgrades to those needing to have the infrastructure to purchase it. Not to be a burden to ratepayers or taxpayers. We have also payed for this project, so the authority clearly wasn't there for all proceeds and profits generated to be doled out to a multi-national conglomerate. As you say a contract was set in motion by whatever assinine political party was commanding at the time. Also as lawyers say, a contract is a contract, unless you hire more powerful lawyers that rub shoulders with the influential and elite. Imagine the turmoil caused if the District of Kitimat and Mayor Wozney would have mammothed the Giant BCUC, BC Hydro, RT/Alcan and Lawson Lundell Law firm Coalition. Summarizing, the people of BC should not incur any rate change due to this transaction, yet they will and it has already been broadcast by BC Hydro in a disguised fashion. The contract was due to expire, here lies the RT/Alcan high card in the negotiations, I prefer to call it blackmail. Others use the poker term "Bluff".

pis_spulper, you are making some valid points, but I am not taking sides here. The whole issue of the original agreement has been through the courts and rulings have been made. Obviously times have changed and a contract that was signed more than half a century ago under much different conditions wouldn't be something that any government would find acceptable and desirable today.

Actually, I think that Alcan did not do anything besides running a primary aluminum smelter in Kitimat plus selling power in the vicinity and later on into the grid.

Alcan had the opportunity (with the port facilities and rail) to build some of its secondary aluminum manufacturing facilities in Kitimat instead of back east and as far away as California.

I am talking about a foil rolling mill, aluminum extrusion mill, alloy wheel casting facility and so forth. The power would have been used in the vicinity (as stipulated in the original agreement!) and this additional industry would have grown Kitimat and the labour force in it.

Who benefits from the *excess* power simply being exported from Kitimat to other places and other industries? R/T of course.

That is the part of the whole deal that is so unacceptable to many because Alcan managed to legally acquire such a great resource and (aside from the ongoing smelter and the new smelter) Kitimat has never seen and likely will never see the progress that I described above as far as an employment intensive secondary aluminum industry next to the smelter would provide.

Next to the smelter is the most logical and cost effective place!

Alcan has the law on its side but I don't think that Kitimat has been given the opportunities that it deserved by those who push pencils cold-heartedly in the corporate offices.

The courts decided and of course none of the above was on the table - it was simply an impartial application of the law, taking everything past into consideration.

Will there be another appeal?

Kitimat was going to be a ghost town unless someone made an effort to develop businesses and jobs there. I am thankful and grateful that the Utilities Commission, the local Labour Union, BC Hydro, BC Environmental Assessment office and Rio Tinto are all in agreement to make this work.

Who am I to criticize the creation of jobs in a community that was headed down the drain. Seems to me that all of these party's have a lot at stake. I am going to support their decision and encourage more of it. I do not have any other solutions or better ideas to propose. Chester

Kitimat has exhausted all the revenue it could afford for all the appeals to this date, and I would gather that much of its legal work was also Pro Bono, so i would assume this is THE END. Nevertheless the DoK and Mr Wozney et all put forth a valiant effort and are to be commended.

Still amazing that no other funds came through to fight this battle. The only partners in this heinous manipulation was Hydro and RT, the rest were just onlookers.

It appears Mr. Campbell has missed Mr. Henning's morning CBC announcement. Way to be on top of events fearless leader.

It is still apparent that these 2 points seem to buzzing scalps on route to the clouds 1)Alcan is not required to modernize, but may sell power 2)Alcan is not required to run any form of smelter, but may sell power.

Boo! Boo! Boo! Damn Ghosts already here!

Why would RT/Alcan bother to make any new announcements about the modernization project-AFTER the ruling came down-if according to some posts here (not all) RT/Alcan is not even intending to go ahead with it?

I would venture to say that virtually everyone who took the time to comment here understands about the two main points: Alcan can continue to sell power, as it has done for decades. Alcan can decide to modernize its old smelter now or never.

The new smelter will run as long as it remains to be RT/Alcan's top horse in the stable. As Mr. Henning said in the CBC interview, once completed it will be the company's most modern, most efficient and least polluting smelter globally.

The prospects are excellent! What is the "Boo! Boo! Boo! Damn Ghosts already here!" all about?

;-)

The announcement read in the local rag last night was that the feasibility and costs of modernization is being recalculated. This Mr. Henning speaking. This process will take possibly 12 months or more. Once that process is finalized, the deal will be presented to the board of directors for the ultimate decision. So any reference to modernization commencing is merely speculation thus far. RT/Alcan has already begun the delaying process.

"The prospects are excellent! What is the "Boo! Boo! Boo! Damn Ghosts already here!" all about?"

Albeit I do support the modernization it does have a drawback. 500 jobs will be permanently lost due to attrition. Seeing this community shrivel to half its size since the 70's and as reported yesterday Kitimat is Canada's most shrivelled community. What great recognition has been bestowed upon us. So Boo!

RT/Alcan is playing hostage with the land it owns until it gets its way. Currently a refinery firm is looking to acquire land owned by RT/Alcan, but is being stymied by RT, perhaps they will now embark on this transaction out of the kindness of their hearts. Surely they must realize what is best for Kitimat?

Your Jimmy pattison theory too made me wonder. Knowing Jimmy doesn't invest where there isn't a good return, I still can't fiqure out why. Those townhomes are worthless and already occupied. They have poor resale value and are in an undesirable location. Housing will be available and cheap, as people continue to move out of the Ghosttown. Jimmy knows something perhaps, but what. I'll call him.

RT/Alcan's Coega project (a new $2.3 billion dollar smelter) in South Africa is in doubt because of recent numerous rolling power blackouts in SA. The certainty of having a stable supply of power there seems to be in question. This makes the Kitimat 400,000 tonnes per year smelter modernization project more of a priority for RT/Alcan as Kemano's power generating facility is very stable and secure.

This is good news for Kitimat.