Kenney Dam - Kemano Completion Project

Kemano Completion Project

In the late 1970s Alcan announced the Kemano Completion Project. The project would construct a second tunnel from the Nechako Reservoir to Kemano, where four more power generators would be built. Alcan told the province the new power generators would supply three new aluminum smelters that the company was going to build in BC and would still sell their extra power back to BC Hydro's grid.

Controversies began in 1980, starting with the DFO and the federal government when they realized Alcan was going to go ahead with the Kemano Completion project without addressing the existing water level and temperature concerns. The proposed Kemano Completion Project would result in an additional 12% reduction in the Nechako River water levels. To avoid increased tensions Alcan waited until 1985, while the DFO performed studies on the potential effects on the Nechako's salmon population, and then made plans to take the DFO to the Supreme Court of British Columbia. Both parties armed with their own scientists. However, the issue was never brought to the courts and was instead settled through the 1987 negotiations involving Alcan, the provincial government and the federal government, resulting in the 1987 settlement agreement. Aspects of the agreement include: Alcan promised to build a cold water release valve in the Nechako Reservoir to cool the water temperature for migrating salmon and the company gave up its Nanika River water rights. In addition, the federal and provincial governments agreed to allow Alcan to proceed with its completion project. Critics and opposition governments accused all three parties of not doing a proper environmental assessment.

Alcan failed to live up to its side of the 1987 settlement agreement. There were delays in construction of the cold water valve. At first the water in the reservoir was too cold and contained too much nitrogen, while not enough oxygen. in order to create the correct balance, Alcan needed to draw water from both the centre and the surface of the reservoir, then run the water through "a hallow cone valve and over a baffle-clock spillway to reduce the amount of nitrogen". Second delays in the construction were due to a decrease in the demand of aluminum and a decrease in the economy. By 1992 the cold water release valve had yet to be built.

In the early 1990s there were increased objections to the completion project, both from the public and the newly elected NDP provincial government, and in 1993 the BC Utilities Commission was directed to conduct public hearings. The hearings began January 17, 1994. They looked at the design and construction of the plans for the facilities required for the completion project, hydrology impacts, fishery impacts, and the economic impacts for the people in the surrounding areas. In 1995, due to the potential and unresolved impacts on the salmon fishery, BC Premier Mike Harcourt announced the cancellation of the Kemano Completion Project. However, Alcan had already invested $1.3 billion in the Kemano Completion Project and in 1987 had been given permission to continue with the project.

After two years of negotiations between Alcan and the BC government, the parties signed the 1997 settlement agreement. Alcan committed to spending $50 million on a cold water release facility at Kenney Dam. In addition, the government paid Alcan $500 million for what the company had previously invested in the project.