Bid to reallocate half of BC Hydro Site C grant-in-lieu of taxes funding rejected

FORT ST. JOHN, B.C. — A proposal to allocate half of the grant-in-lieu of taxes funding from BC Hydro’s Site C hydroelectric dam to the area covering Baldonnel and Charlie Lake have been rejected by the regional district.

During the July 17th regional board meeting of the Peace River Regional District (PRRD), the directors reviewed a recommendation to allocate 50 per cent of the grant-in-lieu of taxes funding from BC Hydro’s Site C hydroelectric dam to Electoral Area C, which covers Baldonnel, Charlie Lake, Clairmont, Grand Haven, Old Fort and Two Rivers. 

The report, submitted to the board by Electoral Area C director Brad Sperling, recommended the funds be allocated starting in 2027 and go towards functions for either aquatic plant harvesting, potable water or both. 

In order to receive the funding, Area C needs to ensure it is decided where the money will be allocated, which would require approval after the area’s next election in 2026. 

As a Crown corporation, BC Hydro is exempt from property taxes, however the utility does pay grants to regional districts and municipalities to compensate for the loss of taxation revenue, according to the provincial government.

According to the report to the board, BC Hydro’s annual payment now that Site C is operating will be increasing from approximately $1.22 million in 2025 to $1.38 million in 2026. 

“I’m not asking for any of the grant-in-lieu from the other two dams [in the region], only from the loss of property taxes that Area C lost over the years and will moving forward,” Sperling told the directors during the meeting. 

The loss of property taxes is due to the land taken up by Site C.

“There’s been no tax loss to Fort St. John, so why do they get [grant-in-lieu of taxes]? This isn’t about the tax loss, it’s what Area C [has] lost and what they should get moving forward,” Sperling said. 

Some of the directors raised concerns about the change in funding allocation, and the board decided to move further discussions into a closed meeting, meaning behind closed doors and not accessible by the public.

Following the closed discussion, a vote was held on whether to approve the funding re-allocation. 

Director and mayor of the City of Dawson Creek Darcy Dober, alternate director and councillor of the City of Fort St. John Jim Lequiere, director and mayor of Fort St. John Lilia Hansen and Electoral Area E director Dan Rose voted against the recommendation, defeating it. 

Following the vote, Electoral Area D director and PRRD board of directors chair Leonard Hiebert adjourned the meeting.

No information is available at this time regarding whether the report will re-appear in a future PRRD meeting. Energeticcity.ca has reached out to the PRRD and will update this article as more information becomes available.