B.C. Hydro has dumped its Alberta joint-venture partner in a natural gas-fired generating plant at Nanaimo and will go it alone on the $300-million project.
A four-paragraph news release from B.C. Hydro on Wednesday announced talks with Calpine Canada on the 265-megawatt plant were terminated.
Gary Rodford, B.C. Hydro executive vice-president, said the corporation still wants to build the Vancouver Island Generation Project "as quickly as possible."
Neither the Crown corporation nor Calpine would discuss reasons, citing a confidentiality agreement.
Rob McManus, Calpine Canada public affairs spokesman, said from Calgary that there were a range of issues on which the two companies failed to agree.
"We're just disappointed that we were unable to make it happen," he said.
B.C. Hydro media relations spokeswoman Elisha Odowichuk said Hydro chose to terminate the agreement. Asked why, she replied: "I can't tell you why. . . . It wouldn't be appropriate."
B.C. Hydro and the Calgary company, a subsidiary of Calpine Corp. of San Jose, Calif., were to be 50-50 joint venture partners in building and operating the plant at Duke Point, near the Harmac pulp mill.
Despite the end of the partnership agreement, Odowichuk said the original deadline of late 2004 to have power on-line from the plant still holds.
"It's going to be full speed ahead. Vancouver Island needs the plant," she said.
"The bottom line is power for Vancouver Island is needed by the winter of 2004," said Ted Olynyk, B.C. Hydro's communications manager at Nanaimo for the project.
Without additional electricity by then, B.C. Hydro would have to disrupt power to some customers, Olynyk said.
B.C. Hydro's statement said it will move on its own to select contractors for design and construction of the plant. Hydro also leaving the door open to finding private-sector partners.
"Going forward, B.C. Hydro will also look at processes and options for private sector participation in the project," said the news release.
Coincidentally, Calpine this week said its 230-megawatt cogeneration power plant at Campbell River was now in full commercial operation.
It bought the operation from Westcoast Energy last September.
The Island Cogeneration plant delivers electricity to B.C. Hydro under a 20-year contract and also 600,000 tons of steam a year to the Norske Canada Elk Falls pulp mill next door.
Calpine is building a 250-megawatt gas-fired power station at Calgary and has a half-interest in a 50-megawatt plant at Whitby, Ont. In the U.S., the parent company operates 62 generating plants in 29 states.
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