City of Powell River’s committee of the whole will make several requests of Canada Energy Regulator regarding power generated at qathet region dams that used to supply power to the Catalyst Paper Tis’kwat mill.
At the July 5 committee of the whole meeting, councillors received correspondence from Ellen Gould, on behalf of Energy Democracy for British Columbia, outlining the intention of Powell River Energy Inc. (PREI) to export power generated from its local dams to the United States. Gould urged councillors to send a letter to Canada Energy Regulator documenting PREI’s lack of notice to the city about its export application, and expressing the city’s opposition to that application.
At the committee meeting, councillor CaroleAnn Leishman said the city should do as Gould requested.
Councillor George Doubt said he believed the city’s position will be that it was not informed this process was going on.
“We want to talk to the energy regulator and say the city wants to be involved, and we want to have intervenor status,” said Doubt. “If we get intervenor status, we get to see all the documents, and we get to make a reasonable presentation. The goal, at the end of the day, is to make sure power is available to people in the Powell River area and for industries, or commercial ventures in the area as much as we can.
“I’m in favour of writing a letter. It should be clear we are letting them know we weren’t informed and that we want to have intervenor status so we can contribute to the debate.”
Councillor Cindy Elliott said the correspondence should also point out benefits to the community. She said the water licence states that the power is for the mill here in Powell River and that’s the purpose of the use of that water for the dams.
“If that’s changing, it means we want to have an interest and intervenor status would be the least of it,” added Elliott.
Revenue required
Mayor Dave Formosa said he agreed the city needs to request intervenor status, based on the fact that the mill site is the city’s largest taxpayer.
“If the power is allowed to leave the site, the power should be returned to the site to accommodate a new industry if a new industry purchases that site,” said Formosa. “We’re hopeful that Renewable Hydrogen Canada is able to build their $900 million facility there.”
Formosa said the city needs to see the mill site producing revenue.
“I believe we should send a letter that council agrees with that states we would like to see that power be made available for sure to a new tenant,” added Formosa. “We should ask that they consider having PREI consider, from the three governments, an opportunity to have a trust similar to the Columbia basin.
“I would hate to say we would not want them to sell their power because there is a dead horse sitting there; they [PREI] have millions of dollars invested and we should be getting an opportunity to have it taxed fairly and revenues coming into the community. We need to make sure power is available to be put into the mill site.”
Formosa said PREI should be able to make revenue with the company’s assets, but there is a need to protect local interests.
Councillor and committee chair Maggie Hathaway asked if there had been any discussion with PREI. Formosa said he and city chief administrative officer Russell Brewer had engaged in a discussion and the city’s first interest was to make sure if power does leave, that it comes back.
“We were given the comfort that it’s their goal, to produce power for that site,” said Formosa.
He added that the mill site has been formally listed as being for sale with Colliers. It is posted on the collierscanada.com website.
Formosa said his understanding is that there is no longer a contractual agreement between PREI and Catalyst Paper Corporation.
Brewer said he and the chief financial officer, the city’s legal experts and BC Assessment are working to get some clarity regarding taxation of the dam.
“It’s still one asset for the purposes of taxation at this point,” added Brewer.
Leishman said representatives of the power company appeared at a meeting of the climate change mitigation and adaptation committee and outlined plans. She said they were clear that they would prefer to sell power to a new industry that may start up with the purchase of the mill property.
The committee gave unanimous consent for a letter to be sent under the mayor’s signature to the Canada Energy Regulator, expressing the concerns outlined at the committee meeting.
