POWER: BC Hydro to buy Teck’s share of Waneta Dam

[caption id="attachment_1003719448" align="alignleft" width="307"] Teck built the Waneta Dam in 1954 to supply power to its smelter in Trail, B.C. (Credit: BC Hydro)[/caption] BRITISH COLUMBIA – BC Hydro has exercised its right of first offer to buy out Teck Resources’ two-thirds interest in the Waneta hydroelectric dam in Trail. Hydro has agreed to pay $1.2 billion, matching an earlier offer from Fortis Inc. BC Hydro will be the sole owner of the 63-year-old, 490-MW facility. The sale includes a 20-year agreement that stipulates that two-thirds of the power from Waneta will continue to flow to Teck’s metallurgical complex in Trail at fixed prices. Teck said payments will start at about $75 million a year, increasing by 2% annually, which is equivalent to an initial power price of $40 per megawatt-hour. Learn more about Teck’s Trail operations at www.Teck.com.