BCUC Approves BC Hydro's $825M Purchase of 1/3 of Waneta Dam

Posted on February 3, 2010 by Warren Brazier

Following up on an earlier blog post, today, the British Columbia Utilities Commission approved BC Hydro's request to purchase a 1/3 interest of the Waneta Dam from Teck Metals Ltd., calling it "in the public interest". See the attached order from the BCUC.

The BCUC also determined that BC Hydro's consultations with First Nations with respect to the Waneta Transaction were adequate and upheld the honour of the Crown. The BCUC's reasons for the decision will be released at a later date.

When the transaction closes, the Waneta Dam, located in Trail, BC, will provide BC Hydro with access to 167MW of firm capacity and 890 GWh/year of energy. Adding the interest in the Waneta Dam will also help the Province meet its electricity self-sufficiency objectives.

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BC Wind Power, Waneta Dam Hearings, Haida and NaiKun and Biomass EPA's Approved

Posted on August 17, 2009 by Warren Brazier
Wind Turbines Are Spinning in BC (finally!)
 
British Columbia's first wind energy facility opened earlier this month in Dawson Creek. The Bear Mountain Wind Park, which is owned by AltaGas, when completed will consist of 34 turbines and generate enough electricity to power 38,000, homes. The project has an EPA with BC Hydro under the 2006 Power Call and will receive up to $20.5 million from the the Government of Canada's ecoENERGY For Renewables Program. This marks a significant milestone on the Canadian renewable energy landscape. Now each of Canada's 10 Provinces can claim to be generating electrons to their respective electricity grids from the power of the wind. A monumental moment indeed. Those in British Columbia can purchase electricity from the Bear Mountain Wind Park, through Bullfrog Power.
 
BC Hydro's Purchase of 1/3 of Waneta Dam before BC Utilities Commission
 
This week marks the start of the public hearing stage for BC Hydro's proposed purchase of a 1/3 interest in Teck Metals Ltd.'s Waneta Dam in Trail, BC . BC Hydro is seeking an order from the BCUC under s. 44.2(1) of the BC Utilities Commission Act that the proposed for $825 million purchase is in the public interest. In its submission to the BCUC, BC Hydro characterizes the Waneta Dam as a significant hydro electric generating facility that has produced safe, reliable power for Teck for over 50 years. If the purchase completes, BC Hydro believes it would gain access to 167MW of capacity and 890 GWh/year of energy. This is an interesting proposal for BC Hydro.  In BC there are only a handful of privately owned dams, and rarely, if ever, are these dams available for purchase. So, BC Hydro buying an existing asset which can supply base load power to the grid and storage capacity, seems to follow quite well with the Province's energy self-sufficiency objectives. The hearing process which will take place over the course of the fall, will examine, among many other things, the cost to acquire the interest in the dam and aboriginal consultation and/or accommodation. This will be very interesting to follow.  Here is the link to the BCUC's webpage on the BC Hydro Waneta Transaction.
 
NaiKun and the Haida Nation sign Investment MOU
 
Last week, NaiKun Wind Energy and the Haida Nation signed a memorandum of understanding which could give the Haida nation a 30% ownership stake in NaiKun's proposed $2 billion wind power project off the coast of the Queen Charlotte Islands. NaiKun currently has a proposal into BC Hydro as part of the Clean Power Call. Kudos to NaiKun and the Haida Nation who continue to show tremendous leadership on the business relationship between first nations and independent power producers. Here's the Vancouver Sun's story on the deal.
 
EPA's for Four Bioenergy Projects Accepted By BCUC
 
Following up on my earlier blog posts (here and here) on Phase I of BC Hydro's Bioenergy Call for Power, electricity purchase agreements between BC Hydro and the four successful projects have now been accepted by the BCUC. They are: Canfor Pulp Ltd. Partnership's project in Prince George, PG Interior Waste to Energy Ltd.'s project also in Prince George, Domtar Pulp and Paper Products Inc.'s project in Kamloops, and Zellstoff Celgar Ltd. Partnership's project in Castlegar. Together, the four projects will generate a total of 579 GWh/year of electricity, or enough to power more than 52,000 homes. Here is BC Hydro's press release. Biomass energy is certainly a welcome boon to BC's forest industry. Great to see BC Hydro buying more of it. Here is the latest information on the Phase II of the Bioenergy Call.
 
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BC Hydro to Aquire 1/3 Stake in Trail's Waneta Dam

Posted on June 17, 2009 by Warren Brazier

Today, BC Hydro announced its plans to acquire a direct 1/3 ownership interest in Teck Resources owned 493 MW Waneta Dam for $825 million by signing a non-binding memorandum of understanding with Teck.

As the BC Hydro press release states, subject to due diligence and regulatory approval, the BC Hydro purchase will secure approximately 1,000 GWh of energy per year of firm energy for BC Hydro, or enough to power approximately 100,000 homes annually.  This energy, which is surplus to the needs of Teck's nearby smelter located in Trail, BC, has historically been sold on the open market, primarily to US buyers. 

"The agreement will go a long way towards helping us meet the B.C. Energy Plan goal of making the province electricity self-sufficient by 2016," said Blair Lekstrom, Minister of Energy, Mines and Petroleum Resources. "Equally important, this agreement will provide cost-effective energy from a publicly owned asset, helping to keep our province's electricity rates among the lowest in North America.

I don't know if this acquisition says more about Teck's need for cash or BC Hydro's need for more firm power, but at $825,000 per GWh, it is a rather expensive purchase for BC Hydro and a good deal for Teck. I wonder if BC Hydro will continue to sell it to US buyers through Powerex or keep the electrons here in BC. Bottom line - BC Hydro has more firm power to use or trade.

BTW - Megawatt is now on twitter

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