Analysis of a cold water release facility in the Nechako Reservoir

As part of the 1997 Agreement with the British Columbia provincial government, Alcan committed up to $50 million toward the design and construction of a Cold Water Release Facility (CWRF) at the Kenney Dam for the environmental enhancement of the Nechako River. The CWRF will become part of the Nechako Reservoir, which is located in northwestern BC. The design and operation of the CWRF will be determined through discussions with stakeholders including the provincial government, the Department of Fisheries and Oceans (DFO), the Nechako Watershed Council (NWC) and First Nation groups. The project and its stakeholders will have direct and indirect effects on Alcan and its objective of maximising value for its shareholders. Alternatives for Alcan include adjusting the time line of the project to complete it as soon as possible, following the proposed NWC time line or delaying the project. Alcan and the stakeholders could also bring a third party to the project. All options could include power generation to the CWRF. In order to meet the primary goal of creating value for the shareholders, Alcan should follow the time line set out by the NWC. This will permit Alcan to build positive relations with the key stakeholders and to protect the provincially granted water rights for the continued operation of the works in Kemano and Kitimat. This paper will in no way reflect the thoughts or intentions of Alcan. The ideas explored within the paper are those of the author only, and are not in any way binding upon Alcan, Simon Fraser University or anyone else.