Federal Decision Puts Powell River Power Export Plan Under New Scrutiny

A decision by the federal government could significantly influence whether a Sunshine Coast hydroelectric company will be allowed to export power from British Columbia to the United States.

The ruling changes the regulatory pathway for an application submitted by Powell River Energy Inc. (PREI), a subsidiary of Brookfield Renewable. The company operates two hydroelectric dams near Powell River at Lois Lake and Powell Lake, located roughly 100 and 125 kilometres northwest of Vancouver.

PREI had applied to the Canada Energy Regulator for permission to export electricity generated at those sites to its U.S.-based affiliate, BR Pacific Hydro, under a proposed 30-year agreement.

However, the federal government has now changed the application from a permit request to a licence application — a shift that significantly expands the regulator’s authority.

Under a permit process, the regulator would have been required to approve the export request, although it could impose conditions. As a licence application, the regulator now has the option to reject the proposal, set additional conditions or hold public hearings before making a decision.

First Nation welcomes decision

The move has been welcomed by leaders from the Tla'amin First Nation, whose territory includes the lakes and rivers used to generate the hydroelectric power.

Chief John Hackett said the community had concerns that exporting the electricity could limit local development opportunities.

“I’m very happy and I’m very pleased,” Hackett said following the announcement.

Hydroelectric infrastructure in the region dates back more than a century. The dams were originally built in 1911 to power the Powell River paper mill, which served as the backbone of the local economy until its operations were indefinitely shut down in 2021.

Hackett said reliable access to electricity is critical for the First Nation’s economic plans for the area.

Economic plans tied to local power supply

In 2025, the Tla’amin First Nation reacquired part of the former industrial site and has been exploring development opportunities.

Possible projects include contained aquaculture operations, seafood processing facilities and a training centre for local workers.

Hackett said ensuring sufficient electricity supply is essential to attracting investment.

“If we didn’t secure power to develop the site, it would be catastrophic,” he said. “There would be a limitation of development, and some investors got cold feet when they heard that.”

Local opposition to export plan

The proposed export agreement has also faced opposition from several local stakeholders.

Advocacy group Energy Democracy for B.C., the City of Powell River and BC Hydro have all expressed concerns about sending locally generated electricity outside Canada.

In a statement, Energy Democracy for B.C. said the federal decision shows the importance of carefully reviewing energy export proposals at a time when clean electricity is becoming increasingly valuable.

“That the federal cabinet took the time … to address our issue is testament to how hard our elected representatives and citizens have worked,” said the group’s president, Ellen Gould.

Next steps unclear

The Canada Energy Regulator says there is currently no timeline for reviewing the licence application or determining whether hearings will be held.

Powell River Energy Inc. did not respond to requests for comment before publication.

For now, the federal decision ensures the proposal will face closer scrutiny — and leaves the future of the region’s hydroelectric exports uncertain.