B.C. Town Battles Alcan Over Power Sales


NFPA 70E Training - 2027 Edition

Our customized live online or in‑person group training can be delivered to your staff at your location.

  • Live Online
  • 6 hours Instructor-led
  • Group Training Available
Regular Price:
$199
Coupon Price:
$149
Reserve Your Seat Today
The northwestern British Columbia community of Kitimat is vowing to thwart a smelter expansion plan that would give Alcan Ltd. the right to sell excess power from its B.C. aluminum operations back to the hydro grid at lucrative prices.

Kitimat mayor Richard Wozney said he is concerned that Alcan is expanding its smelter — at a cost of $1.8-billion (U.S.) — after being given the right to sell power that he said should be used to support industrial development and create jobs in the region.

“This is not the best deal for Kitimat or for British Columbians,” said Mr. Wozney referring to an agreement between Alcan and the B.C. government, which was announced on Monday.

The district of Kitimat attempted to reinforce that view by filing a petition with the British Columbia Supreme Court last month.

The petition seeks a court declaration that power sales are a contravention of a 1950 Industrial Development Act which set the stage of construction of the Kitimat smelter and related hydro electric facilities.

The case centres on the district's view that hydro electric resources available to Alcan in the Nechako River will support a much larger smelter expansion than the one that the Montreal-based aluminum giant is contemplating.

Under the plan that was unveiled this week, Alan is set to increase its aluminum production by 60 per cent to 400,000 tonnes, a level that falls far short of the 550,000 tonne operation that the district is hoping for.

“We question why Alcan is downsizing their plans,” said Mr. Wozney. “The answer can only be that Alcan wants to entrench power sales in the original water-for-jobs agreement they signed with the Province,” he said.

Under the expansion plan, Alcan will have the right to sell sufficient excess power to keep the lights on in 225,000 homes, said B.C. Premier Gordon Campbell.

A spokeswoman for B.C. Hydro said the newly expanded smelter will require 675 megawatts of the power, much less than the 735 megawatts that she said the turbines at the nearby Kemano hydro electric power facilities can generate.

“Because of the low cost of producing electricity at Kemano — about $5 per megawatt hour versus the current long term electricity price of $75 per megawatt hour — Alcan can make very big profit by not producing aluminum and selling the corresponding electricity for export or domestic purposes,” said David Austin, a lawyer who acts for independent power producers. “ It can make money producing aluminum but not nearly as much,” he said.

The district of Kitimat is proceeding with the court case, after the B.C. Court of Appeal ruled in Alcan's favour.

Cynthia Carroll, the President of Alcan's Primary Metals Group, has said the ability to sell power was only a “minor factor” in the company's decision to proceed with the expansion.

Related News

Berlin Electric Utility Wins National Safety Award

Berlin Electric Utility APPA Safety Award recognizes Gold Designation performance in public power, highlighting OSHA-aligned…
View more

U.S. residential electricity bills increased 5% in 2022, after adjusting for inflation

U.S. Residential Electricity Bills rose on stronger demand, inflation, and fuel costs, with higher retail…
View more

'For now, we're not touching it': Quebec closes door on nuclear power

Quebec Energy Strategy focuses on hydropower, energy efficiency, and new dams as Hydro-Que9bec pursues Churchill…
View more

NDP takes aim at approval of SaskPower 8 per cent rate hike

SaskPower Rate Hike 2022-2023 signals higher electricity rates in Saskatchewan as natural gas costs surge;…
View more

US Dept. of Energy awards Washington state $23.4 million to strengthen infrastructure

Washington Grid Resilience Grant funds DOE-backed modernization to harden Washington's electric grid against extreme weather,…
View more

Looming Coal and Nuclear Plant Closures Put ‘Just Transition’ Concept to the Test

Just Transition for Coal and Nuclear Workers explains policy frameworks, compensation packages, retraining, and community…
View more

Sign Up for Electricity Forum’s Newsletter

Stay informed with our FREE Newsletter — get the latest news, breakthrough technologies, and expert insights, delivered straight to your inbox.

Electricity Today T&D Magazine Subscribe for FREE

Stay informed with the latest T&D policies and technologies.
  • Timely insights from industry experts
  • Practical solutions T&D engineers
  • Free access to every issue

Live Online & In-person Group Training

Advantages To Instructor-Led Training – Instructor-Led Course, Customized Training, Multiple Locations, Economical, CEU Credits, Course Discounts.

Request For Quotation

Whether you would prefer Live Online or In-Person instruction, our electrical training courses can be tailored to meet your company's specific requirements and delivered to your employees in one location or at various locations.