Solutions needed for Alcan, Kitimat spat

Kitimat mayor Richard Wozney's campaign to stop Alcan from building a new aluminum plant in his community may go down as the most irresponsible idea ever to come up in B.C. Supreme Court.

Mr. Wozney's claim that Alcan is more interested in selling power to B.C. Hydro than making aluminum intentionally disregards Alcan's successful history and long-range planning on the B.C. northwest coast.

Alcan's smelter operation in Kitimat has employed 1,500 people for 50 years and has generated millions of dollars in tax revenue. The new smelter will cost $1.8 billion, employ 1,000 workers and generate millions of more dollars for the province. Positive news, but not positive enough, according to Mr. Wozney.

Mr.Wozney refuses to understand that Alcan owns the Kemano power station, and it is Alcan's business if it wants to sell the electricity to B.C. Hydro.

Ironically, compared to the 38 private power producers that signed up in the B.C. Liberals' 2006 tender call to produce power for B.C. Hydro, Alcan is investing far more employment, capital and time.

One of the problems is that the B.C. Utilities Commission allowed the B.C. Liberals and B.C. Hydro to entice so many independent power producers with such high-yielding contracts. Now, B.C. Hydro will not only have its $7.5-billion of old debt to pay off, but also $15.6 billion worth of new legally binding contracts to fulfil over the next 30 years.

When electricity rates start to skyrocket, the BCUC will look like a mere extension of the provincial government. Alcan's power agreement with B.C. Hydro should not have to suffer because of the BCUC's resent inaction with other power producers.

Cutting the number of private producers in half and encouraging B.C. Hydro to develop the rest of the power was the far more acceptable solution for the BCUC to follow.

Mr. Wozney does deserve some support, due to Kitimat 's high unemployment and sluggish economy. Alcan making excessive profits through its Kemano power sales, while many locals struggle to pay hydro bills, would eventually be looked upon as profiteering.

Kitimat and Alcan have a long partnership. Alcan giving up two per cent of its annual power sales to the Kitimat region would go a long way in healing old wounds, and lessen the blow when B.C. Hydro's rates dramatically rise.