BC Hydro plans to purchase one-third interest in Waneta Dam
VANCOUVER – BC Hydro plans to purchase a one-third ownership interest in Teck Resources Limited's Waneta Dam and generating facility near Trail, B.C., the two companies announced today.
The companies have agreed to non-binding terms of an agreement that will be subject to review by the British Columbia Utilities Commission to ensure the acquisition is in ratepayers' interest. In addition, the agreement will be subject to appropriate consultations with First Nations.
"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."
The purchase, which is valued at $825 million, will secure approximately 1,000 gigawatt hours of energy per year for BC Hydro – enough to supply 100,000 homes in B.C. annually. This energy is surplus to the needs of Teck's Trail smelter operations and is currently sold on the open power market, mostly to the United States.
"The Waneta Dam will provide BC Hydro and its ratepayers with a secure investment that has a long-term value – complementing BC Hydro's existing heritage facilities with power that is clean, renewable and reliable," said Bob Elton, BC Hydro president and CEO.
The Waneta Dam is located on the Pend Oreille River near Trail, B.C. Its four generating units total 490 megawatts of capacity and produce an average of 2,800 gigawatt hours of energy per year.
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