The deadline for an agreement to be reached in order to keep Atlantic Power's Williams Lake biomass energy plant operating has come and gone.
Thanks to an extension to allow for the completion of the election period, which renders government unable to perform many functions, the plant may still be able to reach a new agreement to continue operating.
"While the challenge remains significant, we are doing all we can to resolve the fibre supply challenge, in order to allow the long term continued operation of our facility. At this time the future of the plant remains unknown," said Frankie Nelson, on site business manager for the Williams Lake plant, in an email.
At the Williams Lake regular city council meeting on Oct. 22, Beth Veenkamp, city manager of economic development, gave an update for council.
"The 15th came and went and we're all still here," said Veenkamp, noting the passing of the initial deadline for an agreement to be met.
Veenkamp said the company agreed to a short extension of the termination date to help get them past the election cycle and so there will be a couple more weeks to work with BC Hydro and the province to find a solution.
"All progress stalled going into the election and they're just hanging, waiting for the dust to settle so that they can get back at it," said Veenkamp.
Atlantic Power's Williams Lake biomass plant burns excess wood waste to produce electricity. The plant creates 66 MW of electricity and was built in 1993.
The company issued a 12-month termination of contract notice to BC Hydro, if a new agreement was not negotiated, citing economic hardship. Atlantic Power is the single largest taxpayer in the city of Williams Lake.
When Atlantic Power issued the notice, they said if a new agreement was not reached, the plant would cease operations in January 2025, with a deadline to retract their notice of mid-October 2024. At the time the notice was issued, the company said the solution would include access to more economic fibre and higher rates for the power they produce.
Acting Mayor Scott Nelson said he hoped the extension means mayor and council can continue to put pressure on the province to find a solution. Nelson is Frankie Nelson's brother-in-law.
Editor's note: This story has been updated to include a response from Atlantic Power.
