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

Prescribed burns to take place around Lytton, Spences Bridge

BC Wildfire Service will only conduct burns if conditions permit

Flooding hits Highway 97 north of Cache Creek

Recent warm temperatures are causing an increase in flooding on area roads

Elizabeth May feels people are looking at the Green Party with new eyes

Green Party leader is hoping for a breakthrough for her party in the October federal election

Cache Creek Softball Association gears up for another season

Organizers are looking for people of all ages from throughout the area

New library program lets patrons research their ancestry

Ancestry Library allows anyone to research their family tree for free

VIDEO: Can you believe it? This B.C. hill pulls cars backwards up a slope

Sir Isaac Newton had clearly never been to this Vernon anomaly when he discovered gravity

Canucks hang on for 7-4 win over Senators

Horvat nets 2 for Vancouver

European, Canadian regulators to do own review of Boeing jet

Air Canada plans to remove the Boeing 737 Max from its schedule at least through July 1

Prime minister defends Liberal budget measures as sales effort gets underway

Conservatives under Andrew Scheer say it’s a spree funded by borrowing against the future

Mayor meets with B.C. health minister on homeless taxi transfers

Two homeless people were discharged from Surrey Memorial and sent to a Chilliwack shelter

B.C. lottery winner being sued by co-workers

They claim he owes them $200,000 each, in a lawsuit filed in B.C. Supreme Court in Vancouver

Teacher reprimanded for conduct towards special needs student

Alan Stephen Berry told vice principal he did not have time to use positive strategies

‘Full worm super moon’ to illuminate B.C. skies on first day of spring

Spring has sprung, a moon named in honour of thawing soil marks final super moon until 2020

Having phone within sight while driving does not violate law: B.C. judge

The mere presence of a cell phone within sight of a driver is not enough for a conviction, judge says

Most Read