The District of Kitimat says it may appeal a B.C Supreme Court ruling that gave Alcan Inc. the right to sell as much electricity as it wants from its Kemano power station.
The Northern municipality has filed a leave of appeal with the B.C. Court of Appeal, giving it the option to legally challenge the March 28 decision that said there are no restrictions on Alcan's use or sale of Kemano power under its agreement with the province.
Alcan wants to invest $2-billion (U.S.) to upgrade its aging aluminum smelter in Kitimat, but the municipality has battled the Montreal-based company over its ability to sell power it doesn't use to run the smelter to B.C. British Columbia Hydro and Power Authority at lucrative rates.
Last year, the British Columbia Utilities Commission (BCUC) rejected a power sales agreement between Alcan and B.C. Hydro, saying it was not in the public interest.
Alcan, the province and B.C. Hydro are close to finalizing a new deal to submit to the BCUC in hopes of moving the project forward. Alcan also needs environmental permits and a labour deal before the expansion can proceed.
Kitimat, this week, outlined several objectives it hopes to negotiate with Alcan related to the smelter expansion, which could spur economic activity in the struggling region.
However, Alcan chief executive officer Dick Evans said his company won't sign a deal with Kitimat, in part, because it doesn't have to.
"What would an agreement with the district mean? They have no jurisdiction over [Kemano]. We own it. It absolutely is beyond belief that someone thinks we're going to spend $2-billion on a smelter and not operate it. That is ludicrous," Mr. Evans said in an interview this week.
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