Kanaskis Falls and Horseshoe
Falls Water Power Regulations
(SOR/97-473,
OIC 1997-1486)
The regulations authorize
the Minister of Indian Affairs and Northern Development
to issue and approve water use licences for two
hydroelectric operations of TransAlta Utilities
Corporation (TransAlta) on the Bow River in Alberta, at
Horseshoe Falls and at Kananaskis Falls, with some
changes from the existing licences.
The licences for Horseshoe
Falls and Kananaskis Falls issued under the Act expire in
October 1997 and October 1998, respectively. In June,
1993, TransAlta applied for an extension of rights on
both hydro facilities. The timing of these applications
was in compliance with the Dominion Water Power
Regulations. No changes to facilities or operations were
proposed in these applications.
The purpose of these special
Regulations is to provide the legal authority to issue
the licences with some changes from the last licences,
and to confirm a revision of the conditions of the
licences. The changes focus on improvements related to
water rental fees, and updated decommissioning and
compensation provisions.
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Dominion Water Power Act,
section 15
INAC/96-7-L
To be published in Canada
Gazette October 29, 1997
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The facility at Horseshoe
Falls was built in 1909 on land surrendered from the
Stoney Indian Reserve. Under the terms of the original
licence, the federal Crown's water rentals are for the
benefit of the Stoney Tribal Band. The Kananaskis Falls
facility was built in 1914, partly on land surrendered
from the Stoney Indian Reserve, and partly on provincial
Crown land. The water rentals for this facility are
shared between the federal and provincial Crowns on the
basis of the proportion of flooded land, with the Stoney
Tribal Band receiving the federal share.
Under the new licences, the
Stoney Tribal Band will receive a substantial increase in
annual water rentals. Currently the Band receives a fixed
amount from both operations totalling $18,000. The new
licences will provide the Stoney Tribal Band with a
guaranteed minimum annual total from both operations of
$76,000, but with an estimated probable annual total of
$85,000, depending on power generation. Alberta will see
the fees it receives from its share of the Kananaskis
Falls operation rise from $5,000 to an estimated value
around $21,000.
In addition, a fixed period
(every five years) for water rentals review has been
introduced into the licences. This allows for the future
revision of the fees as appropriate.
The new licence will also
contain conditions that pertain to decommissioning of the
facilities and sites; the previous licences were silent
on this.
The new licences will have
terms of 30 years (Kananaskis Falls) and 31 years
(Horseshoe Falls), which will bring both licences to a
common expiry date.
The water rentals, which had
not changed since 1956, will increase from $23,000 to
about $106,000. These water rentals will be consistent
with water rentals paid to the Alberta government by
TransAlta from all other hydro facilities in the
province.
Contact: C. Cuddy Chief,
Water Resources, Natural Resources and Environment
Branch, Northern Affairs Program, Department of Indian
Affairs and Northern Development, 10 Wellington Street,
Ottawa, ON, K1A 0H4.
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