Response to Georgia Straight article

It concerns us that the Georgia Straight would publish a feature article that is critical of our project without asking us to comment and/or provide our side of the story. On this count you have failed your readers as the story is both misleading and devoid of objectivity.

While the commentary somehow paints Ledcor as an “extremely powerful force” that is conspiring with the BC Liberals to rip off the public, allow me to help set the record ‘Straight’.

• Ledcor is a progressive, employee-owned company that currently has a 20-year contract to sell 100% of Ashlu’s green power to BC Hydro. There is no ability to sell any of the power to third parties, such as American utility companies.
• Currently, BC Hydro imports 12.5% of the province’s electricity needs from the US – that is the equivalent to one out of every eight homes in BC – and now depends on US-based electricity to keep the lights on. This exposes BC electricity ratepayers to higher prices and use of electricity generated from fossil fuel-based sources. BC’s dependence on this imported electricity is increasing as the local economy continues to improve and more and more people move to this province.
• The Squamish First Nation is fully supportive of the Ashlu Green Power Project and has completed its own, independent review. Ledcor have been leaders in the corporate community in establishing positive and fruitful relationships with our First Nations partners http://www.ledcor.com/en/corporate/communityalliances. Our partnership with the Squamish Nation will turn complete and full ownership of the Ashlu Green Power Project to the Squamish Nation in 40 years.
• The project contract with BC Hydro stipulates a sales rate of 5.5¢ per kilowatt-hour (kWh) for the entire duration of the 20-year contract, regardless of what happens to the North American energy market. This provides stable, cost-efficient and environmentally–friendly, green energy for British Columbians. On our BC Hydro bills we pay just over 6¢ per kWh for electricity; therefore, green power projects like Ashlu provide an economic source of electricity to all BC ratepayers.
• BC Hydro has been exporting power to the US for decades, especially with the formation of PowerEx (BC Hydro’s electricity trading arm) which remained in existence under the then NDP government. It is surprising that Mr. Dobbin appears unaware of the benefits that have accrued to the province as a result of PowerEx’s activities.
• There has been no Independent Power Project (IPP) built for export in the province; PowerEx is the only company that has been reaping profits from exports, not IPPs. All IPPs that have been successfully developed over the past decade sell 100% of their electricity to BC Hydro.
• 37% of the electricity revenues received by BC-based green IPPs are paid out as taxes and levies to local, provincial and federal authorities. This provides long-term economic benefits to the province in significantly greater than the two percent figure cited in the article (see attachment).
• The kayaking community will continue to have the use of Ashlu Creek after the project. The majority of the portion of the creek in question is not conducive to recreational use. It is used exclusively by expert, extreme sport enthusiasts and not by the majority of paddlers. Notwithstanding, Ledcor has agreed to decrease or, if needed, completely shutdown the power plant on busy spring, summer and fall weekends in order to provide the predictable and dependable flow needed to kayak on this section of river. The kayaking community not connected with the Calvert/Dobbin campaign is well aware that this was successfully addressed during our approval process with the Canadian Coast Guard. We think this a responsible action that acknowledges shared use of a provincially-owned resource.
• The cumulative impact of the Ashlu Green Power Project is “low” as stated in the Canadian Environmental Assessment (CEA) report prepared by Fisheries and Oceans Canada, Canadian Coast Guard, Canadian Wildlife Service and Environment Canada. (see attached)
• Developing renewable energy projects are far from easy. The regulatory process alone requires an IPP to obtain permits from more than ten review agencies at both the federal and provincial levels, including First Nations:



1. Fisheries and Oceans Canada, habitat protection branch
2. Environment Canada, Canadian Wildlife Service
3. Canadian Coast Guard
4. BC Integrated Land Management Bureau
5. BC Ministry of Environment
6. BC Department of Agriculture
7. BC Ministry of Forests
8. BC Ministry of Energy, Mines and Petroleum Resources
9. BC Hydro
10. Local Government

• The Ashlu Green Power Project has met the requirements of each of these agencies and continues to consult with the local community and recreationalists in order to reach a better understanding of our project.
• Much like the mining industry where prospectors stake claims on areas that they see as having potential, only a few renewable energy projects actually get developed. In fact, of the 16,676 active mining claims in BC, there only 47 operating mines. Renewable energy projects are no different; for every 20 claims staked, there may be one viable project. Dobbins use, or rather mis-use, of the term “gold rush” mentality is Henny-Pennyism at its best. The sky is still above and the approval process for IPPs is still rigorous.
• While some may compare the onset of IPP applications with a gold rush, it is worth noting that like the mining industry, very few run-of-the-river prospects ever become power projects. For every 20 prospects, there may be one viable project, which must then obtain its permits through rigorous federal and provincial review processes.
• The partners cannot increase the capacity of the Ashlu Green Power Project without consultation. This fact is widely known. Any increase in project size requires evaluation by the BC Environmental Assessment Office. In addition, once the tunnel has been constructed, it limits the water flow to the designed capacity of the plant. Much like a kitchen faucet, no matter how much more it is turned on, the pipe will only allow a certain amount of water to flow through.
• Ledcor is a successful company because we stress good values around honesty, accountability, good community relations and worker safety. We take pride in re-investing our profits in new Canadian enterprises that employ more people and contribute to society. The Ashlu Green Power Project is one such project.

It is common knowledge that an energy shortage is looming in British Columbia. With the import of more than 12% of our electricity, the US is keeping our lights on with fossil fuel-based sources. Green power projects seeks to change this. Electrical consumption is on the rise and no large-scale hydro dams or other significant sources of energy haven been brought on stream by BC Hydro since the early 1980’s.

British Columbians have rejected nuclear energy and grudgingly accept the use of fossil fuel fired thermal energy (re: Duke Point). The result is more intensive energy conservation programs and clean, green energy projects such as Ashlu’s run-of-the-river power as viable options. Each of these options impacts someone and we can’t ignore the energy problem.

Green Power acts in the interest of the greater good. Ledcor and the Squamish Nation are committed to working with those who feel impacted by the Ashlu Creek Green Power Project in order to arrive at reasonable solutions.

While Dobbin’s commentary has deliberately failed to ask Ledcor for comment, we count the “news” item to our benefit. If the net effect of his commentary helps create more dialogue and discussion regarding the Ashlu Creek Green Power Project, the Georgia Straight will have provided a valuable community service. Our door is open—as it has always been. www.ashlucreek.com

Yours truly,

Scott Lyons
Senior Vice-President,
LEDCOR POWER INC.