A proposed long-term power purchase agreement between Canada's BC Hydro and aluminium producer Alcan has been rejected by the British Columbia Utilities Commission.
The Commission refused permission for the deal on the grounds that it is not in the public interest and raises price concerns. The Commission Panel concluded that BC Hydro should not have agreed to the pricing provisions and in particular should not have agreed to pricing provisions based on an earlier deal.
The Commission Panel also refused to accept BC Hydro’s evidence regarding the value of the benefits to ratepayers saying: ‘The Commission Panel concludes that the present value of these benefits is less than the amounts calculated by BC Hydro.’
In November the Commission approved BC Hydro’s Revenue Requirements Application resulting in a 1% decrease in BC Hydro rates on 1 February 2007 and a one-time C$50M refund to customers.
The full decision and related documents may be found at http://www.bcuc.com/ApplicationView.aspx?ApplicationId=135
Related ArticlesAlcan and BC Hydro file appeal