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

Rural recreation tax, priority for Penticton

Three of Penticton’s reps on regional district say finding way to tax rural areas for rec a priority

Grow your family tree at the library

There is a book in the library that I want to read.… Continue reading

Hockey team gets behind Movember

Summerland bantam team supporting men’s health cause

Critteraid fundraiser in support of 53 sick and injured cats and kittens

Only a few tickets left for fundraiser in Summerland for rescued cats and kittens

Volunteer visitors needed

Summerland senior care home calling for volunteers

Trudeau offers to help Pacific islands face climate change impact

Prime Minister Justin Trudeau met with the leaders from the Pacific island nations on Saturday during the APEC Summit in Papua New Guinea

‘Toxic’ chosen as the Word of the Year by Oxford Dictionaries

Other top contenders for 2018 include ‘gaslighting’ and ‘techlash’

RCMP bust illegal B.C. cannabis lab

Marijuana may be legal but altering it using chemicals violates the Cannabis Act

New maintenance crew to look after Okanagan Connector

Acciona Infrastructure Maintenance Inc. will replace Argo Road Maintenance Inc. in 2019

Canada defeats Germany 29-10 in repechage, moves step closer to Rugby World Cup

Hong Kong needs a bonus-point win over Canada — scoring four or more tries — while denying the Canadians a bonus point

Avalanche Canada in desperate need of funding

The organization provides avalanche forecasting for an area larger than the United Kingdom

5 B.C. cities break temperature records

Parts of B.C. remain warm, at 10 C, while others feeling chilly

Your guide to winter light ups around the Okanagan

From Vernon to Summerland, with a stop in Kelowna, we’ve found some activities for you to enjoy

B.C. teacher’s Amazing Race takes students on Canada-wide adventure

Agassiz high school students say they had the experience of a life time

Most Read