Ongoing water funding dispute impacts Hudson’s Hope residents

FORT ST. JOHN, B.C. – Complications and frustrations continue between the District of Hudson’s Hope and BC Hydro as the two discuss money for a permanent water solution in the community. 

Letters between BC Hydro and the District of Hudson’s Hope discussing funding for a new permanent water treatment facility appeared in a leaked staff report from an August 8th closed council meeting. The report was shared anonymously to Energeticcity.ca on September 18th.

In a letter dated June 14th, BC Hydro’s Manager of Social and Community Programs for Site C Jerry Muir outlines a counteroffer referencing a previous letter from the district requesting the utility provide $8 million for the new permanent water treatment facility. 

Muir writes that BC Hydro’s position is that it has ‘gone above and beyond’ their legal and financial obligations to the district,’ referencing $6 million provided previously for the construction of a water treatment plant and the emergency response during the failure of said treatment plant in 2022. 

Muir concludes the June 14th letter with a counteroffer from BC Hydro. This offer includes a cash payment of $2.27 million and the transfer of ownership of BC Hydro’s Raw Water Intake to the District, which the utility values at $838,749. 

This offer is conditional on the District agreeing to a ‘full and final’ release of BC Hydro from the standing agreements between the two parties, agreeing that BC Hydro has met its obligations to the district.

The liability release in the letter reads:

“The District agrees that all issues, concerns, and actual or potential impacts of the Site C Project on the District’s municipal drinking water system have been fully addressed and compensated by BC Hydro, and the District will not seek any further payments associated with any real or perceived impacts of the Site C Project, whether identified now or in the future.” 

In a reply letter dated July 10th, the district stated that the 2019 Water Agreement states that the district is ‘excused from performance of the [permanent water treatment system] if performance is prevented or materially hindered by events or circumstances beyond the reasonable control of the district.’ 

“As discussed, many times in previous communications from the onset of the water treatment plant failure, through no fault of the District, the aquifer-based water system failed in multiple capacities,” The district’s letter stated. 

The letter acknowledged the utility’s offer from June 14th, stating their willingness to accept a monetary offer and the release of BC Hydro’s Raw Water Intake property following a Northern Health inspection and approval. 

However, the district did not agree with the liability release. 

“The District does not agree that all issues, concerns and actual or potential impacts of the Site C Project on the District’s municipal drinking water system have been fully addressed and compensated for by BC Hydro; however, the District is willing to consider a release from the liability of any further requests for financial compensation for the development of a functioning permanent water treatment plant,” the district’s letter stated. 

The district goes on to explain that if the two parties can agree upon these terms, the district wouldn’t need to proceed with the public borrowing process. 

But if an agreement is reached ‘less than the proposed adjustments’ outlined by the district, the public borrowing process would need to go ahead. 

BC Hydro responded to this letter on July 30th, stating BC Hydro’s ‘discouragement’ that the district’s counteroffer did not include the requested release in exchange for funding. 

“Without providing BC Hydro with a final release, the District is essentially asking BC Hydro to act as a guarantor of the District’s new water treatment plant. This is not acceptable to BC Hydro,” the letter states. 

Muir states that if the district wants BC Hydro to contribute funds for the cost of the new permanent water system, they would have to agree to the terms of the release outlined in the June 14th letter. 

“BC Hydro cannot justify providing further funding to the District unless the release language has been agreed to between the District and BC Hydro.” 

This letter concludes with the utility recommending that the terms of a release be negotiated through legal counsel before discussions of additional funding continue. 

It is uncertain if negotiations truly ceased following this letter. 

A vote seeking the public’s approval to borrow almost $5 million to construct a new permanent water treatment facility was announced in a Facebook post by the district on July 30th. As of September 19th, the vote is still scheduled to take place on October 5th. 

An open house with residents on September 9th drew substantial crowds from the community, with several voicing their concerns and frustrations about their situation, and council members have spoken with the media about their frustrations as well. 

During an interview with Energeticcity.ca, Greg Alexis, Senior Manager of Public Affairs for the Site C Project, stated that negotiations were ongoing with the district. 

Energeticcity.ca also confirmed with Chief Administrative Officer Crystal Brown on September 18th that negotiations were ongoing with BC Hydro.

To read the full letters, see below.