Regional district seeks increase to annual Site C payment in line with dam’s production capacity

FORT ST. JOHN, B.C. — Regional district directors are to ask for increased compensation for the Site C dam if it produces more electricity than expected.

During the March 20th regional board of directors meeting, mayor and director of Hudson’s Hope Travous Quibell brought forward a report recommending the Peace River Regional District (PRRD) approach the BC Hydro Environmental Assessment Office regarding Site C. 

According to the report, BC Hydro has requested to amend the hydroelectric dam’s environmental assessment certificate due to the project being able to produce more electricity, and therefore be more profitable, than previously anticipated. 

In concert with this change, Quibell’s report recommends the PRRD seeks a condition of the certificate change, specifically to increase the $2.4 million annual payment for 70 years specified in the Site C Regional Legacy Benefit Agreement signed in 2013. 

When issued with the certificate, estimates for Site C indicated the dam would contain six generating units with a combined installed capacity of up to 1,100 megawatts of energy. 

Now, with two of the six generating units installed, new estimates from BC Hydro state the generating units will be more efficient, producing “more power with the same amount of water than anticipated during the environmental assessment,” according to a letter sent to the BC Environmental Assessment Office in February by BC Hydro. 

The utility now estimates the dam will produce between 1,150 and 1,230 megawatts, which BC Hydro calculates is power for 20,000 to 50,000 more homes than originally calculated during the initial environmental assessment. 

The Regional Legacy Benefit Agreement agreement, signed between BC Hydro and the PRRD specifying monetary compensation related to the construction and operation of the hydroelectric dam, has been a topic of discussion at the board since January.

During the March 6th regional board meeting, the directors agreed to send a letter about the topic to BC Hydro.  

When asked by Lilia Hansen, director and mayor of Fort St. John, if anything else would change, staff confirmed the requested amendment would only apply to the lump sum provided by BC Hydro and would not require a re-opening of previous meetings’ discussions on funding allocations. 

“I’m not looking for a re-opening of the formula, any renegotiating really of any kind,” Quibell confirmed in response.

“This is simply a nod to the fact that the environmental assessment process captures not just environmental impacts but also socioeconomic ones.

“So if the benefit of Site C, in terms of its ability to produce revenue, is increased then the impact to us and the recognition of that impact should also be incorporated.” 

Ultimately, the board voted unanimously in favor of the request, and will approach the BC Hydro Environmental Assessment Office.

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