Energy News (May 01, 2007)

Court decision on sale of Kemano power

In late March the Supreme Court of British Columbia dismissed the District of Kitimat’s 2005 petition against Montreal-based Alcan Inc. According to the judgment there will be no restrictions on the company’s use or sale of Kemano power in the legislation or agreements with the province of British Columbia. The Kitimat-Kemano region is in northwest B.C. near Prince Rupert.

Since the 1950s the company has sold power generated at its Kemano power plant, an important resource to support the electricity needs of the B.C. north coast region. Chief Justice Donald Brenner of the B.C. Supreme Court concluded that neither the Industrial Development Act nor the 1950 Agreement contain language that would restrict Alcan in its decisions regarding the sale of hydro-electric power generated at Kemano. Specifically, Alcan is not required to maintain any specific production level at the Kitimat smelter, and is not restricted from selling its Kemano power or using it for the Kitimat smelter as it considers appropriate.

The Haisla First Nation, which asserts that the Kitimat-Kemano region is part of their traditional territories, intervened in the court proceedings to support the position taken by Alcan and the province. For more information, visit: www.alcan.com.