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A trio of P3 projects for northwestern BC

October 19, 2012

Alta Gas (ticker ALA on TSX) has one hydro project under construction and two others in the advanced planning stages, all in the same vicinity of northwestern BC.

All three projects are located near Bob Quinn Lake and will be connected via the new BC Hydro 287-kV Northwest Transmission Line from Terrace to Bob Quinn Lake. These are ‘run of the river’ projects that tap off part the the river’s natural flow in order to produce energy. These are P3 projects where the investor owned proponent builds the asset (undertakes the risk) and the government (BC Hydro) purchases the energy at an agreed rate.


Alta Gas has built some positive relationships with the Tahltan First Nation, BC Hydro and the BC government to earn a social license for these projects so far.

Financially, having an investor owned entity invest the $ 1 billion in these three projects saves the capital borrowing capacity for BC Hydro. Whether it is a good deal or not for the province remains to be seen as we do not know the terms of the P3 agreement. Economically, the capital investments will be a major shot in the arm for northwestern BC and will facilitate even more development activities.