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

Mixed martial arts event comes to Penticton

Xcessive Force Fighting Championship comes to the Penticton Trade and Convention Centre

Come dance between the lakes

Powwow Between the Lakes returns to Penticton Indian Band in August

Award-winning rockers The Glorious Sons to play Kelowna

Fresh off supporting the Rolling Stones in France, the Canadian band will play Prospera Place Nov. 5

B.C. Wine Info Centre feeling the impact of striking casino workers

The casino isn’t the only Penticton business feeling the brunt of the strike action

Tailgate Party celebrates Naramata’s early roots

South Okanagan wineries located on the Naramata Bench host their annual party

Trudeau asks transport minister to tackle Greyhound’s western pullout

Prime Minister Justin Trudeau says he’s asked Transport Minister Marc Garneau to find solutions in Greyhound Canada’s absence.

Usain Bolt to make run at pro soccer in Australia

Olympic sprint great has long expressed his love of the game

Kelowna shooting victim remains in hospital

The woman injured in Friday’s shooting remains in hospital according to police

Duchess of Sussex wears dress by Calgary’s Nonie to Mandela exhibition

Nonie is believed to be the first Canadian based ready-to-wear designer for the duchess

Amazon’s hopes its Prime Day doesn’t go to the dogs

Shoppers clicking on many Prime Day links after the 3 p.m. ET launch in the U.S. got images of dogs

Alberta man drowns in Mara Lake near Sicamous

The 26-year-old man’s body was retrieved on July 16

Trudeau blasts Putin, Russia following Finland summit but stays mum on Trump

Strong words come one day after a controversial summit between Putin and Trump in Finland

Temperature records break across southern B.C. as heat continues

Whistler broke a 70-year-old record high of 32.2 C with a temperature of 32.9 C

Most Read