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BC Hydro pulls plug on Calpine
Crown corporation to assume U.S. firm's interest in the Duke Point power plant
 
By Robert Barron Daily NewsDaily News
Nanaimo Daily News
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Calpine Holdings is no longer BC Hydro's partner in the building of a 265-megawatt natural-gas powered facility at Duke Point.

Rob McManus, vice-president of government regulatory affairs for Calpine Canada, said ultimately it was BC Hydro that called off the partnership.

Ted Olynyk, a BC Hydro spokesman, said the Crown corporation will assume the American energy company's 50 per cent interest in the $300-million project.

"Due to confidentiality agreements, and the commercial nature of the deal, we can provide no details or reasons for the termination of the partnership," Olynyk said.

"BC Hydro will move alone to get the plant built as soon as possible and will select contractors for design of the plant and to assist with its construction.

"We will also look at processes and options for private sector participation in the project."

Richard Johnston, a spokesman for the Greater Nanaimo Chamber of Commerce, said the termination of the partnership shouldn't be a big issue in the building of the plant.

"We felt it was beneficial for Calpine to be involved, as they were bringing a fair amount of expertise to the plant construction," he said.

"However, the loss of Calpine could prove to be a positive move, provided BC Hydro can provide the expertise that will see the plant operating in an efficient and environmentally friendly manner when completed."

Doug Catley, president of the Nanaimo constituency of the Green Party, said he's "delighted" the partnership is terminated as he, and others opposed to plant, were adamantly against partnerships between the Crown corporation and private American companies.

"If the plant must be built, we think it's extremely important BC Hydro own and operate the plant," he said.

"However, while we realize the plant will be relatively clean, at some point we have to say ?no' to the burning of fossil fuels for electricity."

Catley said the fact BC Hydro is still partnered with Williams Cos. Inc., another American energy company, to build a pipeline under the Strait of Georgia to feed natural gas to the plant is still a problem.

"We still have environmental issues with the building of the pipeline and the fact the Island will still be reliant on American companies to feed our energy demands," he said.

Norm Abbey, a researcher for the Society Promoting Environmental Conservation, agreed having the plant owned by the people of B.C. is a step in the right direction.

"However, I still think we don't need the plant as there are other alternatives," he said.

© Copyright  2002 Nanaimo Daily News
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