Hydro chooses new  partner for Port Alberni Generation

Having shelved Port Alberni Cogeneration (PAC) because, apparently, private investors like Atco and PanCanadian no longer found it profitable to partner with them on the project, BC Hydro has scoured the continent for a partner to build any sort of gas-fired electricity plant in Port Alberni.  

But to make it happen, Hydro themselves had to absorb the risk - so Hydro is proposing that they be an equity partner in the deal.  So much for the independent power producers initiative - Hydro has to supply capital for the pipeline and for the generation plant.  Kind of like paying someone to be your friend.

And goodness only knows what kind of deals they've made to supply gas and buy the electricity from these plants.

Calpine, Hydro's partner in the new Port Alberni Generation Project, is a major player in power production in California, and increasingly across North America.  They have a majority interest in Sumas Energy 1, and are rumoured to be carrying substantial financing for NESCO, the promoter of Sumas Energy 2.  More about Calpine at http://www.calpine.com

More about Port Alberni Generation at http://www.sqwalk.com/PAG.htm

Natural Gas Strategy

Hydro bases gas strategy on $2/mmBTU by 2007

Re. the assumed price for natural gas in 2007: the forecast gas price at Sumas in 2007 is approximately $2.00 US per MMBtu in 1999 dollars. Please note that while BC Hydro's Integrated Electricity Plan Update identifies a need for additional resources to be in place by 2007 and that Vancouver Island is a likely location for another combined cycle gas turbine plant, at this time, any reference to a specific site is premature.