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Q: Kitimat vs. Alcan ( Answered,   0 Comments )
Question  
Subject: Kitimat vs. Alcan
Category: Relationships and Society > Politics
Asked by: kitsnowman-ga
List Price: $100.00
Posted: 07 Mar 2005 21:44 PST
Expires: 06 Apr 2005 22:44 PDT
Question ID: 486553
what is the status of power sales issues in Kitimat, BC
Answer  
Subject: Re: Kitimat vs. Alcan
Answered By: politicalguru-ga on 08 Mar 2005 01:55 PST
 
Dear Kits Now Man, 

Latest Events
----------------
On January 15th 2005, a day after the British Columbia Supreme Court
has ruled that the district has no right to standing on Alcan?s power
sales issue, Kitimat?s officials announced that they?ll ?continue to
pursue legal options to stop Alcan from selling electricity from its
Kemano power plant? (SOURCE: ?B.C. Supreme Court Denies Kitimat's
Right To Standing On Alcan Power Sales Issue? , Canadian Democratic
Movement, <http://www.canadiandemocraticmovement.ca/displayarticle561.html>).

On February 15th, it has been announced that the city plans to appeal
the decision ?The city will appeal last month's BC Supreme Court
ruling that it does not have "standing" in its petition against Alcan
over power sales. Acting mayor Gerd Gottschling made that announcement
during Monday night's council meeting at the end of a stinging attack
on the aluminum company. Chairing the meeting in the absence of mayor
Rick Wozney, Gottschling said he wanted to take the liberty of
expressing his personal position on the power sales issue. "Alcan is
choking the life out of Kitimat - and neither the company, nor the
provincial government seems to care," he maintained.? (SOURCE:
Northern Sentinel, February 16th, 2005).

Since then, however, no public steps have been announced. The Mayor of
Kitimat, Richard Wozney, in fact, had to defent recently the decision
to address legal channels, after the failure, so even in Kitimat
politics, there is no unanimous stance on the issue (SEE: ?Mayor
responds to court route critics?, Northern Sentinel, Kitimat Sentinel,
Mar 02, 2005, <http://www.mytelus.com/news/article.do?pageID=community/kitimat&articleID=1860712>).
This doesn?t mean that there is not much resentment against Alcan in
the city, see for example this opinion page on the Northern Sentinel
from March 2nd, 2005:
Malcolm Baxter, ?Strange math?, Northern Sentinel, March 2, 2005,
<http://www.northernsentinel.com/portals-code/list.cgi?paper=16&cat=48&id=384974&more=>

And on the other hand, a letter to the editor of that newspaper by
H.Sanou, days after the announcement that the city will appeal: ?Time
for a New Broom?, Northern Sentinel, Feb 23 2005, (Cached version
still available at <http://66.102.9.104/search?q=cache:8vjbny60uvoJ:www.northernsentinel.com/portals-code/list.cgi%3Fpaper%3D16%26cat%3D45%26id%3D381137%26more%3D+site:www.northernsentinel.com+alcan&hl=en>
, but I recommend you?ll save the article itself, if you need it).

And another response to the issue: Steve Wilson, ?Chief councillor
responds  - An open letter to Phillip Germuth?, Northern Sentinel, Feb
23 2005  (Also Cached,
<http://66.102.9.104/search?q=cache:m_ExlqVyMi0J:www.northernsentinel.com/portals-code/list.cgi%3Fpaper%3D16%26cat%3D45%26id%3D381136%26more%3D+site:www.northernsentinel.com+alcan&hl=en>).

Background to the Lawsuit
---------------------------------
On January 14th, 2005, the Supreme Court denied Kitimat?s standing on
the issue, but has not ruled on the legality of Alcan?s actions in
selling power beyond the range of the 1950 agreement. Alcan, on the
other hand, expressed its satisfaction with the ruling:
?Alcan Satisfied With British Columbia Supreme Court Ruling?, Press
Release, January 14, 2005,
<http://www.alcaninbc.com/kitimat/jan14_05.htm>.

In January 2004, a year before, Kitimat has sued Alcan in the
provincial Supreme Court ?asking the BC Supreme Court to review all
the agreements with Alcan, and rule on whether the company is breaking
them by selling power.? (SOURCE: Arthur Caldicott, ?Kitimat: a
community fights back?, February 24, 2004,
<http://www.dogwoodinitiative.org/Pages/newsroom/bulletin.php?filepath=http://www.dogwoodinitiative.org/bulletin/archives/000217.html>
).

The story began in the 1950s, with the agreement between the British
Columbia government and Alcan: ?In the 1950?s, Alcan was granted the
right by the representatives of the people of BC to reverse the flow
of the Nechako River, creating a large water reservoir flooding
thousands of acres of land, and using the reservoir for the creation
of Hydro Electricity, to power a large Aluminum smelter in Kitimat
British Columbia, Canada. The deal was good for everybody. Alcan was
able to produce extremely cheap electricity (the most critical
component in producing low cost Aluminum), the Government of British
Columbia developed the untapped resource of Northwest, and the people
of BC received employment. [?]The original document stated that
electricity is to be used for the Aluminum smelter, and for the
development of Industry ?in the vicinity of the works?. The spirit of
the agreement was ?Power for Jobs?. But due to a series of events over
the past years, Alcan has used the opportunity to sell power over the
newly deregulated British Columbia electricity grid to the United
States. [?]The smelter has not been running at full capacity for a few
years now, despite positive metal prices and metal futures. The only
thing now running at full capacity are the power lines out of the
community.
Concerned residents of the Northwest say this is direct contravention
of the original ?50?s? Agreement that granted Alcan access to the
provincial resource in the first place. And if this practice
continues, the future of the Northwest is at stake.? (SOURCE: Save the
Northwest, < http://www.savethenorthwest.ca/>)


See also: 
======
One could see all the documents on the issue in the district?s homepage: 
BC / Alcan Contract & Power Sales
<http://www.city.kitimat.bc.ca/whatsnew/alcan_power_sales/index.html> 

As well as in a special website dedicated to the issue: Save The
Northwest .ca  <http://www.savethenorthwest.ca/> - the site has also
background on the story, for those who are less familiar with all of
the details.

Jeff Nagel, ?Kitimat lays down legal gauntlet?, Terrace Standard
(quoted in Dogwood), January 27, 2004,
<http://www.dogwoodinitiative.org/Pages/newsroom/newsstories.php?filepath=http://www.dogwoodinitiative.org/news_stories/archives/000215.html>

Paul Willcocks?s blog discusses the issue of Kitimat in two posts
(highlighted here, in a Google search of his site:
Google Search of ?Paying Attention? Blog 
<://www.google.com/search?hl=en&lr=&c2coff=1&q=site%3Ahttp%3A%2F%2Fwillcocks.blogspot.com+alcan&btnG=Search>

?City opposed to Alcan power sales?, January 18, 2004,
<http://www.ippbc.com/328/1734>
?Alcan wins on a technicality Regional economic development ignored
Kitimat vows to continue the fight? , Citizens for Public Power,.ca ?
January 2005 Newsletter, 
<http://www.citizensforpublicpower.ca/articles/jan05pluggedin.html#2>

Kitimat takes Alcan to court, The Electricity Forum,
<http://www.electricityforum.com/news/jan04/kitimat.html>

Pictures of the Smelt, Whard (and other images, if you click the picture): 
Alcan Smelter Kitimat British Columbia Canada 
< http://www.kurtknoll.com/ki13.html> 
Alcan Warf Kitimat British Columbia Canada 
< http://www.kurtknoll.com/ki22.html> 

I hope this answers your question. Please contact me if you need any
clarification on this answer before you rate it. My search strategy
has been to search for the terms ?Arcan? and ?Kitimat? and to add
terms that would lead me to the dates (such as ?March 2005?), to
personalities (the Mayor and his actions), or to specific events (the
lawsuit).
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