Energy Minister Bill Bennett

Site C dam construction to start next summer

Province to take less revenue from BC Hydro to minimize its debt, says $8 billion project is the cheapest available option to meet demand

The B.C. government has given the go-ahead for BC Hydro to start construction on a third dam on the Peace River, with a delay of six months to try to work out settlements with area aboriginal communities and landowners whose properties will be flooded or cut off.

Energy Minister Bill Bennett said Tuesday an update of the construction costs upheld the $7.9 billion estimate for the Site C dam that was developed in 2010, but the estimate has risen.

Delaying the project six months from its original start date adds inflation and interest costs, and calculating the effect of the provincial sales tax replacing the HST bringing the total to $8.34 billion, and the province is establishing a “project reserve” of $440 million to bring the total estimated cost to $8.77 billion.

The project reserve is in case of unforeseen events such as a rise interest rates during the eight-year construction period.

BC Hydro CEO Jessica McDonald said the six-month delay provides time to work out agreements with Treaty 8 First Nations who have declined settlement offers. The federal-provincial environmental review panel gave the go-ahead for the project in May, but noted its unavoidable impacts on aboriginal hunting, fishing and trapping rights that are assured by the 1899 treaty.

A group of Peace valley landowners has already started legal action against the project, having refused offers from BC Hydro to buy their land. Aboriginal groups in Alberta, downstream of the project, have also started court action against it.

NDP leader John Horgan called the decision “a $9 billion gamble” and repeated his call for a review by the B.C. Utilities Commission to see if the additional power is going to be needed by the time the dam is operating in 2025.

The BCUC will determine BC Hydro rates in the years ahead, and how much they will go up to pay for the most expensive public construction project in B.C. history. The government plans to mitigate BC Hydro rate impact by reducing the dividend the government takes from the power company’s operations each year.

Bennett said a review of alternative clean energy sources, including wind, solar and geothermal power, showed they can’t compete on price because they are intermittent sources that would require backup power.

 

Just Posted

B.C. First Nations regulate pickers arriving for post-wildfire mushrooms

Tsilhqot’in Nation, based in Williams Lake, has also begun regulating morel pickers

Province bans all off-road vehicle use in Elephant Hill wildfire area

Ban goes into effect on May 17 to support wildlife recovery strategies.

Multi-use dog park in Ashcroft not a popular option

There is support for an off-leash dog park, but not a shared one.

Flood and wildfire report contains 108 recommendations for government

Communication, mitigation, and using local knowledge all highlighted in report.

First Nations need more say, consultation during diasters says new report

‘We’re all equal players here’ says report’s co-author, Chief Maureen Chapman.

VIDEO: After the floods, comes the cleanup as Grand Forks rebuilds

Business owners in downtown wonder how long it will take for things to go back to normal

MP Karina Gould back to Hill with baby Oliver for electoral reform bill

Gould brought Oliver to work with her as she resumed duties as democratic institutions minister

VIDEO: Footage of 2 shrieking lynx posted by Canadians goes viral

The videos — one shot by a man and his girlfriend — show two lynx sitting face-to-face, shrieking

Teen must repay $37M for starting Oregon wildfire

A teenager who started a major wildfire in Oregon has been ordered to pay restitution

Canada’s G7 goal on development: luring private capital to poor nations

G7 finance and international development ministers convene in British Columbia next week

Congressional leaders to review information on Russia probe

Trump said he will “demand” that the Justice Department open an investigation into whether the FBI infiltrated his presidential campaign

Canadians stranded in Cuba after plane crash returning home

Montreal-based travel agency says hundreds of Canadians who were stuck in Cuba since a plane crash last week are returning home

As summit looms, North Korean media return to angry tone

North Korean media are stepping up their rhetorical attacks on South Korea and joint military exercises with the United States

Maple Leafs lose another executive after parting ways with assistant GM

The Toronto Maple Leafs say club and assistant general manager Mark Hunter have mutually agreed to part ways.

Most Read