VANCOUVER—BC Hydro says it plans to spend $1.2 billion to gain complete ownership of a dam and generating station in Trail, B.C.
The company says in a release that it will purchase a two-thirds interest in the Waneta Dam from Teck Resources Limited to help keep electricity rates affordable for customers.
The deal includes a 20-year lease agreement where electricity generated at the dam by the two-thirds interest will supply power to Teck’s smelter in Trail.
BC Hydro bought a one-third share of the dam in 2010 in a deal that included the right of first offer on any remaining interest in the dam.
Teck previously announced a deal with Fortis Inc. to buy the outstanding interest, and the mining company says in a release that it expects to pay a fee of about $28 million for cancelling that agreement.
The deal between BC Hydro and Teck is subject to a number of conditions, including approval by the BC Utilities Commission.