The proponent behind the Glacier Howser independent power project says it has cancelled an energy purchase agreement with BC Hydro. But while Axor Corp. intends to sign a new deal, critics claim it’s another nail in the project’s coffin.

Neil Murphy, Axor’s local representative, says the company opted to scrap the contract, signed in 2006, because keeping it alive would have meant huge financial penalties for not completing the project on time.

“BC Hydro was willing to continue with the contract, but we would have had to pay $200,000 a month,” he says. “That could build up to a substantial amount to keep an old contract that wasn’t the best for making the project viable.”

Murphy says the agreement’s penalty clauses kicked in after three years, an unrealistic timeframe. He says BC Hydro recognized this in its second proposal call for independent projects two years ago.

“The 2008 contracts were changed to a minimum of five years, and a maximum of eight,” he says, “which is far more reasonable for a proponent.”

A third proposal call recently closed, and Murphy is optimistic they will be able to get in on the next round, although no date has been set.

He says Axor concluded there was nothing to be gained by hanging on to the old agreement, especially with the environmental assessment process nearing its end.

He has also heard rumblings that BC Hydro may switch to a standing offer where proponents can submit proposals at any time rather than waiting for a call.

Although the company intends to seek another agreement, opponents of the Glacier-Howser project were encouraged by news of the cancellation.

“Pulling out of an electricity agreement is a serious move,” says Nelson-Creston MLA Michelle Mungall, who notified local media. “It’s critical in terms of where the public wants to see this project go — which is away.”

Mungall says the cancellation is “a positive. It’s a step toward this project not being approved.”

BC Hydro spokeswoman Simi Heer confirmed the agreement is off the table, but couldn’t give any other details.

The Glacier Howser project calls for diversion of water from both creeks and running a 90 km transmission line across the Purcell Mountains. It would generate about 100 megawatts of power. Opponents say the project would hurt grizzly bears, caribou, and fish.

Over the summer, Axor filed a supplementary report with the environmental assessment office concerning fish habitat, which remains under review.

Axor says one additional issue has been brought forward concerning ice on the creek, but the requested data is readily available and will be submitted shortly.

Photo: Howser Creek