Who Owns Local dams?

The Powell, Lois, Horseshoe and Theodosia dams, along with associated infrastructure, are owned by Powell River Energy Inc.(PREI), that has a staff of twelve people. These dams were originally constructed to power the local pulp and paper mill, which owned and operated them until 2001. That year, the mill sold half of its electricity-generating assets to PREI and sold the remaining half in 2013. As of 2021, PREI exports all the energy it generates to the US.

PREI is a subsidiary of Brookfield Renewable Partners L.P. (Source: PREI letter to BCUC, Dec. 8, 2022) a limited partnership based in Bermuda – a jurisdiction that does not levy corporate income tax.

According to the Tax Justice Network, Bermuda ranks as the third worst enabler worldwide of corporate tax avoidance. The organization notes: “When a country introduces local rules to prevent multinational corporations from being taxed on their income elsewhere in the world - for example, in the country where they are registered - this often results in corporations paying no or little tax anywhere.” (https://cthi.taxjustice.net/countries/bermuda/print)

It is likely, therefore, that PREI pays little or no corporate income tax to either the federal or BC government.

Brookfield Renewable is itself a subsidiary of Brookfield Corporation, which the Financial Times has described as “one the world’s largest and most complex financial conglomerates” and a “trillion dollar labrynth”. (https://www.ft.com/content/6e070b14-74cc-4ade-bd80-7bd3900c6a82).

A 2022 report by Canadians for Tax Fairness identified Brookfield as the top corporate tax avoider operating in Canada, citing its use of “complex and opaque corporate structures” that result in revenues and profits being recorded in either low or no-tax jurisdictions. (https://www.ctvnews.ca/federal-election-2025/article/brookfield-registered-entities-to-grand-cayman-address-obama-called-largest-tax-scam-in-the-world/)

Source: “Unaccountable: How did Canada lose $30 billion to corporations?” Canadians for Tax Fairness, October 2022 https://www.taxfairness.ca/sites/default/files/2022-10/oct-2022-tax-gap-report_0.pdf

Local Tax Contributions: An Unclear Picture

It is very difficult to find out how much PREI pays in taxes to the City of Powell River and the qathet Regional District. PREI owns land for its Lois generating station and holds extensive rights-of-way over land for its power lines – both of which are subject to property taxation.

PREI has a complicated “possessory agreement” with the mill owners for the site of its Powell generating station. PREI representatives stated at a presentation they made to City Council on January 17, 2023 that it paid its municipal taxes through Catalyst, the owner of the mill at the time.

Payments for Water and Access to BC Hydro Lines

PREI pays water fees to the province for the extensive rights it holds in the qathet area to store and use water. PREI also pays BC Hydro to use its transmission lines to export power to the US.