Canada`s share of the calculation of downstream benefits is called “Canadian law”. The initial Canadian approval after the completion of the dams was 1,377 megawatts of capacity (half of the total additional reliable generation capacity at U.S. dams) and 759 megawatts of average electrical power (or 759 megawatts on average, delivered at maximum rates of 1,377 megawatts over a one-year period). Countries expected these amounts to decrease over time. This is because it was assumed that 1) the increase in electricity demand would be covered by new thermal power plants – coal, natural gas, nuclear energy – for the production of the base load, and 2) that, if necessary, dams would be increasingly used to provide additional energy – excellence. To realize the downstream electrical advantage, the United States (Article III(1)) may. . . .
maintain and operate the hydroelectric generating stations contained in the base system and all additional hydroelectric power stations built on the main Columbia River tribe in the United States of America in such a way that the improvement in the flow of electricity resulting from the operation of the Canadian reservoir for the production of hydroelectric electricity on the United States of America electricity grid is the most efficient. The United States can comply with the obligation to “use it most effectively” by reflecting the requirement in studies that determine downstream benefits. What is important is that Canada must operate according to the agreed operating plans. In the absence of a specific agreement, these plans are designed for flood protection and the production of optimal hydroelectric power and not directly for other purposes, such as providing water for irrigation, navigation or rivers to support the migration of salmon and steelhead into the Lower Columbia River. Columbia Power also holds the rights to build a second power plant on the Waneta Dam at the mouth of the Pend Oreille River, north of the international border. The existing dam and power plant are owned by Teck Cominco Metals Ltd. Waneta Expansion Power Corporation, a company founded jointly by trust and Columbia Power, is planning a power package with a capacity of up to 435 megawatts. In October 2010, Columbia Power Corporation and Columbia Basin Trust announced that they had signed a partnership agreement with Fortis, Inc. to build the Waneta extension plant. Under the deal, Fortis represents 51 percent of the project, Columbia Power Corp. will own 32.5 percent, Columbia Basin Trust will own 16.5 percent.
After the passage of the canal and the lowering of 84 meters through the power plant with four units of hydraulic turbine generators, the water returns to the river.  Electricity generated at the Kootenay Canal Generating Station is fed into BC Hydro`s provincial grid through two lines that lead south to the Selkirk Switch Station near the Seven Mile Gene Station.  The first of these joint venture projects was the 187-megawatt power plant on the Keenleyside Dam, which began generating electricity in 2001. The facility, known as Arrow Lakes Generating Station, is owned by Arrow Lakes Power Corporation, owned by Columbia Power and CBT Arrow Lakes Power Development Corporation, a subsidiary of the trust. Hydropower revenues are shared between Columbia Power and the province. The second major crisis for the city`s power plant came in 1971 with the threat of land expropriation for the construction of the BC Hydro Kootenay Canal. After years of negotiations and the adoption of contracts, an agreement was reached in 1989 between the City of Nelson and BC Hydro with the signing of the Water Legislation Agreement. When the Kootenay Canal came into operation in 1976, electricity generation at the city`s plant was reduced by 15 percent. By signing the agreement, the province expropriated 10 hectares (25.26 acres) and the City of Nelson received $400,000 and a water allocation from BC Hydro that brought production back to its level in front of the canal and allowed the city to retain ownership of the plant and the power system.