Columbia River Treaty
Edition:
Company Engaged in Valuation of U.S. Benefits From the Treaty
In December 2013, the U.S. Entity submitted a final regional recommendation to the U.S. Department of State. The recommendation is to seek a modernized framework for the Treaty that balances power production, flood risk management, and ecosystem-based function as the primary purposes, while also recognizing and implementing all authorized purposes that include irrigation, municipal and industrial use, in-stream flows, navigation, and recreation. The recommendation document also notes the region feels the financial compensation returned to B.C. through the downstream benefits (Canadian Entitlement) is excessive, and needs to be based on the actual value of coordinated power operations.
The U.S. will now conduct a federal interagency review to determine what, if anything, they want to negotiate with Canada. The review is expected to continue until late 2014. The regional recommendation can be found at: http://www.crt2014-2024review.gov/RegionalDraft.aspx
British Columbia believes that if all of the benefits created in the U.S. due to coordinated water management operations in B.C. are identified and valued, the downstream benefits returned to B.C. are in fact undervalued. The Province has engaged Ernst and Young LLP to conduct an economic analysis to better understand the value of the benefits Treaty coordination provides to the U.S. The work on the valuation has begun and is expected to conclude in late fall of 2014.