', . -- \,.,A .'. '<' ~ C ..-\ ~ /J)~ S COt/l\'t' PROVINCE OF BRITISH COLUMBIA BRITISH COLUMBIA UTILITIES COMMISSION IN THE MATTER OF the utilities Commission Act, S.B.C. 1980, c. 60, as amended IN THE MATTER of a Sale of Surplus Power Service and Exemption Amendment Order No. 2 issued by the Minister of Energy, Mines and Petroleum Resources on August 11, 1986 IN THE MATTER OF the Sale of Surplus Power amending Agreement No. 4 BEFORE: M. Taylor, Chairman~ and N. Martin, Commissioner o R D E R WHEREAS on July 28, 1982 the Minister of Energy, Mines and Petroleum Resources issued a Sale of Surplus Power Service and Exemption Order; and WHEREAS the afore-noted document outlined certain provisions to be observed by Cominco Ltd. ("Cominco") and West Kootenay Power and Light Company, Limited ("WKPL"); and WHEREAS Conditions l(b) (i) and l(b) (ii) of the Sale of Surplus Power Agreement included, inter alia, the following provisions: (i) a procedure whereby WKPL may, until the 31st day of December, 1990, elect to purchase from Cominco, and Cominco shall be required to sell as firm energy up to 75 average annual megawatts, (aamw) on a calendar year basis; FOURTH FLOOR. 800 SMiTriE STREE1: VANCOUVER. B C V6Z 2E~ CANAO~. TaEPHO"lE 1604) 660-4700. TELEX 04-54536 . "l ~~ t , """" .". . c'-~ i " ~ '' ~ ' l '~ o·. . ! i ~ 0 q ORDER .. ",C:> NUMBER, G-S2-86 and and August 15, 1986 •• • ,/2
lON ORDER NUMBER G-52-86 2 (ii) a right of first refusal to WKPL of any further surplus; and WHEREAS on June 13, 1986 WKPL provided to the Commission copies of a letter dated May 21, 1986 from Cominco Ltd. concerning their smelter modernization, and a May 26, 1986 response by WKPL (copies attached as Appendix "A" to this Order) ~ and WHEREAS on July 30, 1986 WKPL submitted for Commission approval the Sale of Surplus Power Amending Agreement No.4, dated July 30, 1986; and WHEREAS the Commission has reviewed the proposed Amending Agreement No. 4 and is satisfied that it is in the public interest. NOW THEREFORE the Commission orders that the Sale of Surplus Power Amending Agreement No. 4 is hereby approved. DATED at the City of Vancouver. in the Province of British Columbia, this 1t/!3 day of August, 1986. BY ORDER JI~~ Chairman Attachment
(Btll) Ro~nson West Kootenay Power and Light P-fu~nl Op.r.1J01'\1 •• i Company, Limited i04} l64 .. ,J() Waneta Plaza 8100 Rock Island Highway Trail, B.C. VIR 4N7 Attention: Mr. J.A. Drennan May 21, 1986 Dear Joe: Re: Smelter Modernization I am writing to advise finalizing arrangements modernization. This project when coupled with the already modernized zinc plant, will ensure the long-term metallurgical and chemical Smelter modernization components including a and a new oxygen plant. It is estimated that smelter modernization will increase Cominco's overall industrial electric power requirements by approximately megawatts (HaaMwH). To reduce the financing requirements upon Cominco arising from the modernization program, Cominco is proposing that the new oxygen plant be owned and operated by a company specializing in air products, wi th the oxygen purchased by the new smelter. The oxygen plant may also produce certain by-products which may be offered for sale to third parties by the owner/operator of the plant. Any such by-product sales might Cominco to own the oxygen plant itself. The oxygen plant will be located within the bounds of Cominco's industrial plant site at Trail. provide the plant wi th electric power, sewer services. APPENDIX HAil ~) ~.Y~ you that Cominco is to proceed with smelter complete, and viability of Cominco's operations at Trail. includes several major new furnace/smelting module 8 annual average Cominco for use in also occur were Cominco will water and
To make certain that this method of providing oxygen will not conflict with the Sale of Surplus Power Service and Exemption Cominco sells power to intends to apply for an amendment to the Order which shall authorize it to supply up electric power to the owner/operator of the new oxygen plant before offering any interruptible power to West Kootenay. Please advise if you have any concerns or objections regarding the foregoing. Yours trul y, ~c::?'-:>/->'--!? /~. . W.J. Rob rtson ~- WJR:A -2-Order pursuant to which West Kootenay, Cominco to 20 aaMw of ·
~ .... " ..... _ ...... , •• W"' ...... , •• '.11, .., """. iel i~) ~3.32' I Telex 041-4417 60x '30. Trail. B.C. V1R Al<l J. A. Orennan west kootenay power Pontoe,,' and cn..1 UKllltve 011«' ~1ay 26, 1986 Mr. W.J. Robertson Vice-President Operations at Trail Cominco Ltd. TRAIL OFFICE. Dear Bill: I am writing in response to your letter of May 21, 1986 in which you advise of Cominco's plans to proceed with modernization of its smelter at Trail, and of the forecast change in Cominco's total electrical load requirements. With respect to the new oxygen plant, we understand that it is an essential part of a modernized smelter and therefore an integral part of Cominco's industrial operations. We further understand that the purpose of having a third party own and operate the new oxygen plant is so as to reduce the financing burden upon Cominco. Given the foregoing, West Kootenay has no objection to Cominco seeking the amendment to its Exemption Order to ensure that the new oxygen plant for the modernized smelter can be supplied with electric power by Cominco. You rs-.::-u' r 9~~"-'?~~ J. A. Drennan "--JAD:fb
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