BC Hydro has filed a revised power purchase deal with Alcan at the British Columbia Utilities Commission (BCUC), which rejected the initial agreement between the companies in December last year.
The new deal replaces the contract rejected by BCUC and answers the questions over prices, contract length and increased capacity and scheduling. In particular, the contract period has been extended by 10 years to 2034, and with respect to hourly scheduling BC Hydro will have available under the contract 292MW (up from 191MW) to 2009 and after 2017 it would get 163MW (up from 39MW).
Subject to BCUC approval, the new contract is to take effect from 1 October.
Alcan said that the contract to deliver surplus power to BC Hydro was a vital element in its modernisation programme for the Kitimat smelter to make it one of the three biggest in North America. The upgrade would add 40% to the plant’s production capacity and at least 4% to Alcan’s annual global primary aluminium output.
In a statement, Alcan said: ‘We are confident that this new agreement addresses the findings from the BCUC’s decision rendered in December 2006 and builds on the key elements of the new energy policy made public by the British Columbia government in February.’