Prince George city council took the first step in renewing its contract with Lakeland Mills Ltd. to supply fibre for the Downtown Renewable Energy System through 2026 with options to extend it through 2027 and 2028 at its Monday, April 7 meeting.
From a central location near the intersection of Second Avenue and George Street, the system uses wood waste to power boilers that pump heated water to buildings across downtown Prince George like city hall, the Prince George Public Library, the Canfor Leisure Pool, the Ramada Hotel and more.
The original contract with Lakeland Mills to supply the products used to power the boilers ran from 2012 to 2022.
If the bylaw creating the new agreement eventually passes fourth reading, the new agreement would stretch retroactively from July 1, 2022 to Dec. 31, 2026 with options to extend it through 2027 and 2028.
The new agreement includes annual rate increases of five per cent to the system’s customers, matching a price increase being charged by Lakeland.
Coun. Brian Skakun asked what happens if Lakeland loses access to its fibre supply.
Mayor Simon Yu replied that the city would move to natural gas-powered operations.
Director of civic operations Blake McIntosh said moving to gas-only operations would lead to additional operating costs as well as some regulatory challenges like getting workers certified.
Skakun said the system has reduced the city’s greenhouse gas emissions and received millions of dollars of related grants for it.
Director of finance and IT services Kris Dalio said the system reduced the city’s emissions by about 20 per cent when it went into operation and said it was a big part in Prince George receiving a grant for the construction of the Canfor Leisure Pool, though he said it was difficult off-hand to measure the entire financial impact.
Coun. Garth Frizzell said system doesn’t just provide a reduction in emissions but also makes the city a customer of a forestry product.
Coun. Trudy Klassen said she heard at the recent 2025 Council of Forest Industries convention in Prince George that there isn’t a lack of fibre supply necessarily, but a matter of improving permitting and other factors within the forestry industry.
Mayor Simon Yu said he hoped that the system could eventually become a net-zero emitter with the use of carbon capture technology.
First three readings of the bylaw passed unanimously.
