Alcan Files Right to Appeal British Columbia Decision

Jan. 22 -- Alcan Inc., the world's second- largest aluminum producer, filed for permission to appeal British Columbia's decision to block a power-supply agreement at its Kitimat smelter.

Alcan had an agreement to sell as much as 380 megawatts of power a year to British Columbia Hydro & Power Authority for the next 20 years. The Montreal-based company said it filed its application with the British Columbia Court of Appeal, which will give it the right to appeal the decision by the province's utility regulators. Alcan said it's still considering whether it will file the appeal.

The British Columbia Utilities Commission rejected the agreement last month. The town of Kitimat opposed the deal, saying it would allow Alcan to sell power back to BC Hydro consumers ``at over a 1,000 percent profit.''

The commission ``erred in rejecting the amended and restated long-term energy-purchase agreement'' Michel Jacques, President and Chief Executive Officer of Alcan's Primary Metal Group, said in the statement.

Alcan said Jan. 2 it would review the reasoning behind the commission's decision before deciding whether to appeal. The company had 30 days to lodge the appeal after the decision and said it still hasn't received the details from the commission.