The Government of British Columbia has said that it will ensure the 1100MW Site C project in the Canadian province is completed, and will address the challenges facing the hydroelectric project from Covid-19 and other factors.
When we made the decision to move forward with Site C in 2017, none of us could have imagined the impact that the pandemic would have on projects here in B.C. and around the world,” said Premier John Horgan. “The project is facing new challenges, and we are committed to managing it in the best interests of British Columbians. Cancelling it would cause people’s electricity rates to skyrocket, and we will not burden people with additional financial stress during these difficult times with nothing to show for it.
“Site C is already 50% finished, and our government will complete this project, ensuring British Columbians have clean and affordable power for decades to come.”
The Province has released a review by Peter Milburn which contains 17 recommendations aimed at improving oversight and governance. Government and developer BC Hydro have accepted all the recommendations. Milburn has been retained to provide oversight on implementing the recommendations, which include enhancing the independence, mandate and expertise of the Site C Project Assurance Board and strengthening BC Hydro’s risk reporting and management.
The Government has also released the geotechnical review from independent experts John France and Kaare Hoeg. Their review confirmed the foundation enhancements developed to address geotechnical issues on the project’s right bank will work and will ensure the project meets the highest safety standards. France and Hoeg have been retained to provide oversight to BC Hydro while construction of the foundation enhancements is completed.
Given the challenges facing the project due to delays from COVID-19, the need for foundation enhancements and other factors, the Province has brought in new leadership at BC Hydro, it said in a statement.
Doug Allen has been appointed the new chair of BC Hydro’s board. Allen who has an extensive background in the public and private sectors in British Columbia, replaces Ken Peterson, who was appointed chair on July 10, 2017. After spending more than 40 years in the electricity industry, Peterson led BC Hydro through major reforms over the past three years, including lowering electricity rates for the first time in decades and ensuring the corporation could continue to provide affordable power to B.C. ratepayers for years to come.
“Our government has taken this situation very seriously, and with the advice of independent experts guiding us, I am confident in the path forward for Site C,” said Bruce Ralston, Minister of Energy, Mines and Low Carbon Innovation. “B.C. needs more renewable energy to electrify our economy, transition away from fossil fuels and meet our climate targets. Site C will help our province achieve these things and is currently employing about 4,500 people in good-paying jobs.”
The revised cost estimate to complete Site C is $16 billion, with a one-year delay to complete the project (now 2025). The one-year delay due to COVID-19 is the primary reason for the increase in the cost estimate, followed by the foundation enhancements, and other cost and schedule pressures.
The costs to cancel the project, including sunk costs and the costs to remediate the site, would be at least $10 billion. This does not include the costs of replacing the lost energy and capacity Site C would have provided.