Dear Editor:
The city has announced they are hosting a bio mass conference on Thursday, Oct. 19. I feel there is a need to clarify and give some historical perspective of the city-owned utility Revelstoke Community Energy Corporation (RCEC).
I was employed by the city from 1992-2009 in both operational and management positions giving me solid background of this utility. As part of the utilities department, I was involved in installing city utilities to RCEC as it was being constructed.
Many annual reports state RCEC uses wood waste to fire the boiler and claim significant reduction of waste from Downie Timber. This is incorrect as the boiler intake system cannot tolerate the waste stream as it is too fibrous. The plant is fired by a select clean sawdust that has an increasing value as a commodity. It is in high demand in the livestock and agricultural industry. We are burning this valued resource.
Downie Timber supply contract with RCEC ends in 2025.They are realistically subsidizing RCEC by supplying this product for more than 18 years that they themselves sell as part of their revenue stream.
The city sold its Walter Hardman power facility to BC Hydro decades back. Of the proceeds, $1 million was earmarked by the council of the day as an internal legacy fund. City departments or utilities could borrow from and repay to this fund. I conclude the council plan was to lend one-third of value to individual depts at one time. RCEC was given the entire $1 million in one lump sum. There was a defined interest to be paid and return of principle. Other than one small interest payment in 18 years it has gone.
The location of RCEC is adjacent to Downie on a city-owned small parcel of land of which as of this article the city has no idea where it’s legal boundaries are located. There is a private mobile home park left, to the right is finished lumber storage of Downie and its infrastructure carries on over to the ball fields and adjacent streets.
RCEC, with the exception of one year, has been in operational deficit. The deficits range from below $100,000 to almost $500,000. In addition to the above mentioned losses, it carries almost $3 million in external debt. The customer base is small and being in almost continual operational loss, taxpayers are indirectly subsidizing the customer base, though they share no blame for this situation.
Bob Melnyk