The B.C. government has asked the B.C. Utilities Commission to begin its review of the Site C dam, prompting questions about the project’s future.
Energy Minister Michelle Mungall said Wednesday the review will focus on the economic viability of the $8.8-billion project.
“Our government is delivering on our commitment to British Columbians by ordering an independent review of Site C to ensure we can keep hydro rates affordable,” she said.
“The previous government refused to allow our independent energy watchdog, the B.C. Utilities Commission, to examine the project to determine if it was in the public interest. That was wrong.”
The B.C. Utilities Commission will look at whether B.C. Hydro is on target to complete the hydroelectric dam project within budget by 2024.
It will also provide advice on the implications for ratepayers in three scenarios: Proceeding with the project, mothballing it while maintaining the option to resume construction until 2024, or terminating it and remediating the site, while proceeding with other resource portfolios that provide the same level of benefits at the same or lower cost as Site C.
The government has also asked the BCUC to consult interested parties and First Nations, including public hearings in the Lower Mainland and the North and an opportunity to submit written comments.
The review begins Aug. 9. A preliminary report is due within six weeks on Sept. 20 and a final report within 12 weeks on Nov. 1.
Work will continue on the site during the review. No new contracts are expected to go out to tender in that time frame.
Site C would flood more than 5,500 hectares of land along the Peace River in northeast B.C., creating an 83-kilometre-long reservoir and providing enough power to light up to 450,000 homes a year.
The B.C. Liberals and other supporters say 2,500 jobs depend on the project and that it would create “clean” energy for future generations.
The NDP and Green Party have said it’s too expensive and unnecessary.
Project construction started in 2015 and was scheduled for completion in 2024. The diversion of the Peace River was set for September 2019.
Residents who live in the flood zone have been in limbo since their lease expired last week. They sold their property to B.C. Hydro and have been renting since.
The evictions will be delayed during the review, Mungall said.
Some said the review is unnecessary.
Chris Gardiner, president of the Independent Contractors and Builders Association, called the review “reckless.”
“We’re very disappointed; 2,400 men and women in construction woke up today, went to that job site to help build a clean-energy project that will provide hydroelectricity for B.C. for over 100 years. The review is unnecessary. This project has been a decade in the making,” said Gardiner, who showed up at the B.C. legislature with 2,400 fake pink slips to illustrate his point.
“The message this is sending to businesses in British Columbia and investors outside British Columbia is that regulatory approvals [and] environmental assessments are not worth the paper they’re printed on.”
B.C. Liberal MLA Dan Davies, who represents Peace River North, said he’s seven kilometres away from the project in Fort St. John and has worked on it himself. He said it’s on time and on budget.
Six to 12 weeks isn’t long enough to complete a review of value, he said. And the project has already been reviewed multiple times, he said, which should be enough.
“It’s unfathomable that we’re doing this epic waste of taxpayer money for a fake review,” Davies said.
Reviewing the project was an NDP campaign promise and one of the conditions of the agreement it reached with the Green Party in order to form government.
The NDP consulted the Green Party when developing the terms of reference for the review — but the decision on what happens next rests with the NDP cabinet.
Green Party Leader Andrew Weaver said he was consulted on the draft terms of reference and said the process looks good.
He said he would be surprised if it finds Site C is a more economical option than investing in alternatives such as the energy storage sector.
“I think it would be fiscally foolish to proceed [with Site C] and I think they would have trouble with their own caucus if they proceed,” he said, given that some members have spoken against the project.
Weaver predicted the NDP would shelve the project, rather than kill it or continue.
“I suspect the option about delaying and stalling is going to be the kind of kick-the-can decision that will be made,” he said. “I don’t think that’s the right decision. But I wouldn’t be surprised to see that as the decision, because it’s a way of trying have your cake and eat it too, which we’ve seen a lot of in B.C. politics.”
— With files from The Canadian Press
