Bute Hydro drops environmental assessment application 

Friends of Bute Inlet, the Wilderness committee and other environmentalists are breathing a sigh of relief as Bute Power does not see “advancing through the Environmental Review Process at this time” for the massive hydro project that would transform Bute Inlet.

But no one is claiming the battle has been won.

"While this is a huge step in a good direction – backwards – it’s important to remember that we don’t know why Plutonic is postponing the federal Environmental Assessment process. With such huge projected revenues and so much already invested, it’s hard to imagine that corporate interests will simply walk away – yet we can only guess at their reasons and strategy," says Lannie Keller of Friends of Bute Inlet. 

"Plutonic (Bute Hydro) has not secured a deal with the Xwemalhkwu First Nation– and there are hurdles before that could happen. When FOBI met recently with Xwemalhkwu elders, many expressed deep concerns. Projected costs also appear to be significantly under-estimated, due to proponent optimism and/or the power of Mother Nature. Plutonic/GE’s (smaller scale and still unfinished) Toba-Montrose project exposes the inevitability of major environmental challenges, as well as First Nation working relationships with expensive and difficult-to-resolve issues."

Bute Hydro Inc, a partnership between Plutonic Power and General Electric had proposed to dam and divert 16 rivers in the Bute Inlet area to produce hydroelectric power. The project is located in the heart of salmon, mountain goat and grizzly bear habitat. Their letter states that although the companies are stepping back for now, they may want to come back at a later date to “reconfigure the project”.

A surprise survey finding fish in most Bute rivers triggered an unexpected requirement for  higher in-stream flows. This reduces the water available for diversion, and Department of Fisheries and Ocean’s (surprising) non-negotiable stance on in-stream flows at Toba adds to the economic uncertainties at Bute.

But the game is changing, too. The Harper government is pushing Bill C-9, legislation that empowers the federal environment minister to reduce and exempt power project reviews and guts the Canadian Environmental Assessment Act. Also, BC has a new Clean Energy Act (passed last week with closure of debate) that opens the province for unregulated export of power by private companies and eliminates the BC Utilities Commission’s independent oversight that served public interests.

“While we are happy the project has ground to a halt, we are concerned that the company may be delaying the project to give the Federal government time to further weaken Federal Environmental Assessment legislation,” said Joe Foy, Campaign Director with the Wilderness Committee. That’s why we are saying that we need to take advantage of this delay now, to ensure that the Bute Inlet region’s wild salmon rivers are fully protected from the crazy schemes of General Electric and their friends. We are calling on the BC Government to revoke General Electric’s water license application and to declare the rivers of the Bute an official Salmon Sanctuary, forever protected from being dammed, diverted and ruined.”

In the meantime, there are hundreds more BC rivers staked for power developments. "With the world momentarily focused on the value of environment, now’s the time to exalt the value of our remaining natural systems and push for more protections," says Keller.

News and items of interest are still posted at www.buteinlet.net.

Extract from the letter from Bute Hydro Inc. to the chair of the federal review panel:

(Click here for the complete document.)

I am writing on behalf of Bute Hydro Inc. (a 100% owned subsidiary of Plutonic Power Corporation) to advise the Federal Review Panel that the Company has decided to extend the timeframe for developing the Bute Inlet Hydroelectric Project (Project). We are extending the timeline for the Project for the following reasons:

• The Bute Inlet Hydroelectric Project did not receive an Electricity Purchase Agreement (EPA) in the 2008 Clean Power Call.
• While the recently tabled Clean Energy Act has provided some potential future development paths for the Project it appears that the likelihood of obtaining an EPA for the Project within a reasonable time period has been reduced.
• Taking into consideration the above, and with the potential to reconfigure the Project as the result of additional field study results, there is uncertainty on what the composition of the Project may be moving forward.

Based on our current understanding of the Project and the uncertain timeline for the next opportunity to obtain an EPA, we do not see advancing the Project through the environmental assessment at this time.

We remain committed to the development of this Project, and will continue with cost-effective work to ensure that we move forward in a manner consistent with the high standards set by governments.