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

WATCH: Kan Yon restaurant break-in caught on camera

Owner Kevin Kwong said the break-in will not stop him from doing business

Letter: With Greyhound cuts, cancer care still available for rural residents

Editor, In light of the Greyhound bus lines reducing service in British… Continue reading

Savage West rock at a hoedown for a cause in Hope

Owners of Broke Buckle Clothing Co. held the event to benefit the Heart and Stroke Foundation

A tiny shop with a big heart for the Hope hospital

The gift shop at the Fraser Canyon Hospital is bursting at the seams with new products

Snow prayers answered as Manning Park ski hill opens Friday

Ski hill will be open seven days a week starting Dec. 14, and cross-country trails as well

Trudeau to make it harder for future PM to reverse Senate reforms

Of the 105 current senators, 54 are now independents who have banded together in Independent Senators’ Group

Boeser has 2 points as Canucks ground Flyers 5-1

WATCH: Vancouver has little trouble with slumping Philly side

Man dies after falling from B.C. bridge

Intoxicated man climbed railing, lost his balance and fell into the water below

Hundreds attend Hells Angels funeral in Maple Ridge

Body of Chad John Wilson found last month face-down under the Golden Ears Bridge.

B.C. animation team the ‘heart’ of new ‘Spider-Man: Into the Spider-Verse’

The animators, largely based in Vancouver, ultimately came up with a creative technique that is drawing praise

Light at the end of the tunnel for UN climate talks

Meeting in Katowice was meant to finalize how countries report their emissions of greenhouses gases

Gas prices to climb 11 cents overnight in Lower Mainland

Hike of 17 cents in less than 48 hours due to unexpected shutdown of Washington state pipeline

Janet Jackson, Def Leppard, Nicks join Rock Hall of Fame

Radiohead, the Cure, Roxy Music and the Zombies will also be ushered in at the 34th induction ceremony

Supreme Court affirms privacy rights for Canadians who share a computer

Section 8 of the Charter of Rights and Freedoms protects Canadians against unreasonable search and seizure

Most Read