Environment Minister George Heyman, Premier John Horgan and Energy Minister Michelle Mungall announce decision to proceed with construction of the Site C dam, B.C. legislature library, Dec. 11, 2017. (Ragnar Haagen/Black Press)

Site C dam goes ahead, cost estimate now up to $10.7 billion

Premier John Horgan says Christy Clark left him no other choice

B.C. Premier John Horgan has given the green light to completion of the Site C hydroelectric dam, after B.C. Hydro revised its cost estimate upward by more than $1 billion.

The B.C. NDP cabinet has struggled with the decision, with the project two years in and facing a cost of $4 billion to shut down construction of the third dam on the Peace River and put the site back the way it was.

After hearing from experts for weeks, the government faced an estimate that B.C. Hydro rates are already expected to rise 30 per cent over the next 10 years without the costs of Site C.

If the dam is halted, rates would go up another 12 per cent by 2020 to pay the cost. That translates to an extra $198 per year for an average single-family house.

RELATED: How Christy Clark made Site C unstoppable

When it proceeds, government officials expect the additional rate increase would be 6.5 per cent when the dam goes into service in 2024. B.C. Hydro would likely apply to the B.C. Utilities Commission to “smooth” that rate increase, raising it in smaller steps to pay for the dam.

Horgan blasted the previous B.C. Liberal government for “megaproject mismanagement” that left the NDP government with little choice.

“It’s clear that Site C should never have been started,” Horgan said. “But to cancel it now would add billions to the province’s debt – putting at risk our ability to deliver housing, child care, schools and hospitals across B.C. And that’s a price we’re not willing to pay.”

The risk reserve for Site C has been increased by $700 million to prepare for further costs increases.

B.C. Liberal critic Mike Bernier, MLA for Peace River South, said the project had been studied for a decade and 2,000 families and Peace region businesses have been left with uncertainty while the new government’s review carried on.

B.C. Liberal finance critic Tracy Redies, a former B.C. Hydro board member, said the NDP’s review confirmed that with projected growth in electricity demand, B.C. will need the equivalent of nine Site C dams by 2050.

B.C. Green Party leader Andrew Weaver said proceeding with Site C was a result of the NDP “pandering for votes” by taking $4.7 billion of Port Mann bridge debt onto the government books to cancel bridge tolls.

Now the province can’t afford the $4 billion cost of stopping the dam, and it has two bad policies based on political expediency, Weaver said.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Revelstoke construction company applies for gravel pit for second time

Terus Construction wants to expand their current operation on Westside Rd.

Caribou debate in Revelstoke makes international headlines

How much are we expected to sacrifice to save a dying species?

Dawn Low Interim CAO for Revelstoke for six months

She will be in the position until it is filled, it is not currently advertised

LETTER: Revelstoke Paddlesport Association opposed to gravel pit near Jordan River

City council has also expressed opposition to the gravel pit

Athletes and volunteers ecstatic about triathlon’s return to the Okanagan

Race will take place in 2020 on Aug. 30 in Penticton

Firefighters have doused a Peachland house fire

Fire crews are still on scene investigating the cause of the BBQ which made its way to the home

False report of dead body leads police to sex dolls at Manning Park

Princeton RCMP breathed a sigh of relief, momentarily, when they discovered a… Continue reading

Ironman returns to Okanagan after seven-year absence

Subaru Ironman Canada is coming back to Penticton in 2020

Grand Forks fire chief found to have bullied, harassed volunteer firefighter: report

WorkSafeBC, third-party human resources investigation looking into allegations complete

Special memorial service to say goodbye to murdered Kelowna teen

A memorial service and celebratio of life was held Tuesday for murdered teen Elijah-Iain Beauregard

Okanagan College campus flies Syilx flag

The Okanagan Nation Alliance flag was raised at a ceremony at Vernon campus on July 16

Dog recovering after being drenched in hot coffee, B.C. man charged

Man was taken into custody, charged, and released pending a court date

Taekwondo instructor, 21, identified as B.C. bat rabies victim

Nick Major, 21, an instructor at Cascadia Martial Arts in Parksville

Most Read