BC Hydro acquires additional interest in 480 MW Waneta Dam
BC Hydro has announced it plans to purchase the remaining two-third ownership interest in the Waneta Dam and Generating Station in Trail, B.C. from Teck Resources Limited (Teck) for CAD1.2 billion (US$945 million). The purchase is forecast to have a beneficial financial impact each year, helping to keep rates affordable for BC Hydro’s customers.
In May, Teck announced it had reached an agreement to sell its two-thirds share of the Waneta Dam and Generating Station to Fortis Inc. When BC Hydro purchased a one-third share of Waneta in 2010, it negotiated a right of first offer on any future sales of the remaining two-thirds interest retained by Teck. As a result of this agreement, Teck offered to sell the two-third interest to BC Hydro on substantially the same terms and conditions that it was prepared to sell to Fortis Inc.
The transaction includes a 20-year lease agreement where the electricity generated from the two-thirds share will continue to supply power to the Teck smelter in Trail at set prices. Teck also has an option to extend the lease by a further 10 years. As a result, this decision has no impact on BC Hydro’s energy supply and demand balance.
Ken Peterson, Chair of BC Hydro said:
“BC Hydro was presented with a unique opportunity to purchase the remaining two-thirds interest in the Waneta Dam and our analysis shows that this purchase is in the best interest of our customers. Our number one priority is to keep rates low, and this purchase will help make rates more affordable.”
Katrine Conroy, Minister of Children and Family Development and MLA for Kootenay West, commented:
“Securing a long-term source of clean, reliable power at a cost-effective price to continue serving the Trail smelter is a great development for the entire province. At the same time, Kootenay jobs and economic investment will strengthen as a result of BC Hydro’s purchase of the Waneta Dam.”
The Waneta Dam, located on the Pend d’Oreille River, has a total capacity of 496 MW of renewable power and generates an average of 2,750 gigawatt hours of energy per year. Teck’s Trail Operations utilizes approximately 1,880 gigawatt hours of energy per year from Waneta.
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