$4 billion power project announced
By Paul Rudan
Campbell River Mirror
November 25, 2008
Plutonic Power Corporation and GE Energy Financial Services have submitted an unprecedented $4 billion plan to BC Hydro to build run-of-the-river power projects on the mainland coast east of Campbell River.
Plutonic announced the initiative Tuesday, calling it the largest single private sector hydroelectric generation investment in Canadian history.
"Today's submission is the culmination of four years of planning, engineering, consultation, permitting and licensing," said Plutonic Vice-Chair and CEO Donald McInnes in a news release. "We are grateful to our First Nations partners, and the cities of Powell River and Campbell River for supporting our bids."
The bid is in response to BC Hydro's "Clean Power Call" in June. Hydro wants 5,000 gigawatt hours of electricity per year in order to help make B.C. electricity self-sufficient by 2016.
This must also be accomplished using 90 per cent clean domestic generation sources.
Plutonic and GE Financial have already teamed up to build the $600 million run-of-the-river power project in Toba Inlet, along East Toba River and Montrose Creek.
The power plants and lines are presently under construction and are expected to begin delivering 196 megawatts of electricity to the BC Hydro grid by mid-2010.
The new projects, proposed in the bid, would be situated in the Upper Toba Valley and in Bute Inlet, and would cost an estimated $4 billion. Once completed, they would produce 1,200 megawatts of electricity – enough energy to power 330,000 homes.
Funding for the project would come from GE Financial, an American-based firm which could also secure loans for financing. Both Plutonic (PCC: TSX) and GE (NYSE: GE) are publicly traded companies.
BC Hydro is expected to announce the winning bids between next April and June.
Plutonic is currently in negotiations with the Campbell River-based Homalco Indian Band whose traditional territory lies within Bute Inlet. An agreement would be required to move ahead with the projects in Bute Inlet.
The company has already signed working and financial benefit agreements with three other First Nations bands for the projects in Toba Inlet.
"These projects will provide long-term economic and social benefits to these First Nations and communities in addition to providing BC Hydro with clean electricity," said McInnes.
The Upper Toba Valley Hydroelectric Project
The Upper Toba Valley Hydroelectric Project, with a generation capacity of approximately 166 megawatts, consists of three generation facilities that will connect to the BC Hydro grid through a 230- kilovolt line already under construction for the Plutonic Power and GE Energy Financial Services East Toba River and Montrose Creek run-of-river project. The Upper Toba Valley Hydroelectric Project is expected to be permitted by the end of the second quarter in 2009. The project will be able to take advantage of infrastructure already in place in the Toba Valley.
The Bute Inlet Project
The Bute Inlet Project, with generation capacity of approximately 1,027 megawatts, consists of 17 facility sites in three areas: the Homathko, Southgate and Orford Rivers. The Bute Projects have been registered with both provincial and federal permitting authorities. A formal application for an environmental assessment certificate is expected to be submitted in late 2009.