The Forrest Kerr Hydroelectric Project is a proposed run-of-river project in British Columbia that would produce renewable energy for 60 years without negatively impacting the environment. It faces hurdles of remote location, needing to secure support from the First Nation Tahltan community, and lacking transmission lines. AltaGas addressed these by negotiating long-term agreements with BC Hydro and Transmission, gaining federal funding for transmission lines, and building strong relationships with the Tahltan through open communication and ensuring their benefits and consent. Construction proceeded on time despite challenges. Maintaining this collaboration for 60 years will be key to the project's long-term success.

1. ALTAGAS LTD:
FORREST KERR
HYDROELECTRIC
PROJECT
Location: British Columbia, Canada.
Project Lifetime: 60 years.
Termed as the future largest single-location run-of-river project in North America.

2. Project Details
■ It is a green field Run-of-River hydroelectric project aimed at producing clean
and renewable energy.
■ River water diverted into the turbines located underground and sent back to the
river downstream.
■ Project doesn’t need any dam, reservoir or doesn’t flood any areas.
■ Underground power house, so no change in landscape
■ Minimal effect on aquatic resources.
■ In total, minimal environmental impact.

3. Project Values
■ Develop clean and renewable energy
■ Provide alternative for dirty and expensive diesel based power
■ Process of due diligence
■ Honoring trust and social justice

4. Project Hurdles
■ Remote location
■ Securing support from First Nation community
■ Absence of Transmission lines
■ Identifying prospective customers
■ Lack of experience in building greenfield projects

5. HARDSHIPS AND
STRATEGIES BY
VARIOUS SECTOR.

6. ■ Required customers - AltaGas would generate huge amount of electricity.
■ The excess energy was to be sold to BC Hydro on a long term basis.
■ Energy could be transported to one of the BC Hydro Transmission Lines
(nearest 350 km away)

7. FEDERAL GOVERNMENT
■ No actions so far by the federal government on the extension of the BC Hydro
transmission lines to the area.
■ To convince the government to spend some fund on building a transmission line to
the northern parts of British Columbia.
■ Not an easy task to convince
ISSUES

8. ■ Mid 2009 – AltaGas sent Aarssen and his team to Ottawa
■ Met with various ministries. The government was interested in selling the excess energy to
US. They had a strong interest in the economy of British Columbia- by strengthening the
province future by ensuring enough energy.
■ The company explained – aim to provide the reliable energy for people in Northwestern British
Columbia.
■ Focused on social benefits.
■ Ready to invest a lot of money but with reasonable return.
OUTCOME
■ September 2009 – The federal government announced - $130 million to help the extension of
the Northern British Columbia.
FEDERAL GOVERNMENT
STRATEGY

9. PROVINCIAL GOVERNMENT
TASKS
■ Negotiation of long term price agreement with BC Hydro
■ Negotiation for building the transmission line with BC Transmissions
■ Proving the credibility to the provincial government
STRATEGY
■ Agreeing to provide reliable clean energy to whole of the province
■ Agreeing to provide cheaper power to all stakeholders
■ Full disclosure of commercial terms and conditions
OUTCOME
■ Securing a 60 year period deal for sale of power with BC Hydro

10. THE TAHLTAN COMMUNITY
■ Consult and accommodate First Nations’ Interests.
■ The project initiator have to work directly with the people.
■ To remove the apprehensions of the Tahltan community.
■ Tahltan leaders were open to listening but were guarded.
ISSUES

11. THE TAHLTAN COMMUNITY
■ Formal discussions and negotiations were done.
■ Started off with an informal approach – about experiences, family.
■ Portrayed the social concern about the community.
■ Belief – The success of a business should be measured not solely by shareholder value but
also by the social value it creates.
■ Structured a communication protocol – no message would go out unless passed by all three
parties.
■ Negotiation was focused on – financial, employment, procurement and safeguard.
■ Subgroups were formed and then focussed on a is picture.
■ The third party verification was carried out to rectify.
■ New agreement with AltaGas needed to be ratified by a community vote.
STRATEGY
OUTCOME
■ Spring 2010 – Negotiation was completed. Impact and Benefit Agreement (IBA)
was set.
■ The provincial government now could start with necessary permits

12. OPERATIONAL DIFFICULTIES -
CONSTRUCTION
■ Engineering Challenges – creating tunnels and placing powerhouse
underground, installation and connection of turbines to a powerline, building,
and managing a construction camp
■ Delays and setbacks – number of turbines to be installed was changed
according to conditions and prior estimations about the site failed to meet
expectations
■ Weather – Difficulties due to decrease in temperature or increase in water levels
■ Conflicts between Tahltan contractors and project managers – aggressive
negotiations over payments and contract terms
■ Ensuring fair treatment of the Tahltan community

13. ■ AltaGas relied on its network of relationships throughout the community for
resolving conflicts or misunderstandings.
■ These connections allowed AltaGas staff to help the people understand the
reasoning behind certain steps taken by the company.
■ Construction was thus completed on time and on budget.
■ The community actively participated and benefited from the success of the
project – financial agreements, employment, clean source of energy.
■ Support from federal government, provincial government and powerful
relationships with the Tahltan community led to the success of the project.

14. LONG TERM?
■ Maintaining the strong collaboration with the community for 60 years is a big
challenge.
■ Need to institutionalize the collaboration that had been built
■ Maintaining the companies’ ethics
■ Ensuring active participation with the community and involving them in decision
making
■ Maintaining trust through transparency and accountability throughout.