BCUC Decides BC Hydro's Purchase of One-Third of Waneta Dam is in Public's Interest

BC Hydro is pleased with the British Columbia Utilities Commission’s decision that it is in the public interest for BC Hydro to purchase one third of Teck Resources Limited’s Waneta Dam and generating facility near Trail, B.C.

The $825-million purchase will secure approximately 1,000 gigawatt hours of electricity per year for BC Hydro customers--enough to supply 100,000 homes in B.C. annually for the life of the project at a cost of $64 per megawatt hour over the life of the dam.

"Acquiring long-term access to this clean, reliable power has a significant benefit to BC Hydro ratepayers by bringing the province of British Columbia closer to electricity self-sufficiency at a very cost-effective price," said Blair Lekstrom, Minister of Energy, Mines and Petroleum Resources.

"This is electricity that is surplus to Teck's needs and was previously sold mostly in the United States. It will now be used to serve the people of British Columbia," Lekstrom said.

The commission also concluded that BC Hydro's consultation with First Nations about the purchase had been adequate. BC Hydro and Teck Resources Limited will now proceed to take the necessary steps to close the transaction, with a closing expected later in February.

"This is a unique opportunity for BC Hydro because it enables us to purchase a significant share in an existing hydro-electricity facility, with no additional environmental impact," said Bev Van Ruyven, acting president and chief executive officer of BC Hydro. "With proper maintenance, dams and generating stations can last for 100 years or more, so this purchase will have a lasting legacy value for our ratepayers."

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