(UPDATE) BC Hydro reveals how much it paid to Peace for projects including Site C

Updated, September 3rd, 12 p.m.: This story has been updated to correct errors, including to clarify that the grants are separate from the Site C Regional Legacy Benefit Agreement and to clarify how much grant money is paid separate to taxes, which go directly to the province. Energeticcity.ca is happy to set the record straight.

FORT ST. JOHN, B.C. — BC Hydro has revealed the amount of money it paid to the Peace River region in 2024 and 2025 in way of grants-in-lieu of taxes.

In an August 29th email, Bob Gammer, the manager of Site C community relations with BC Hydro, detailed the payments made by the utility in 2024 and 2025 for projects in the region such as the Site C hydroelectric dam built on the Peace River near Fort St. John. 

According to the utility, this grants-in-lieu of taxes funding is separate and not part of the Site C Regional Legacy Benefit Agreement, a 70-year funding commitment to the Peace River Regional District (PRRD).

“Through provincial legislation, BC Hydro is not subject to municipal taxation, but in lieu of this, we provide grants,” Gammer said. 

Grammar went on to say the utility does also pay school taxes to local governments, but these then go directly to the province. 

In 2024, the utility paid a total of $4,332,670.81 in grants to the PRRD, the District of Hudson’s Hope and the City of Fort St. John combined, a number which increased to $7,254,466.31 with the activation of Site C in 2025. 

Broken down, the District of Hudson’s Hope received grants of $2,140,862.09 while the City of Fort St. John received $396,909.72 and the PRRD received $1,794,899 that year.

With Site C added to BC Hydro’s list of projects, in 2025 the utility paid $3,016,286 to the PRRD, $2,365,751.41 to the District of Hudson’s Hope and $1,872,428.90 to the City of Fort St. John.

Gammer explained the grants are calculated based on several factors, including equivalent values of municipal property taxes and one per cent of the gross revenue from BC Hydro sales within each municipality. 

Additionally, an unspecified amount per megawatt of “installed generating capacity” for dams, reservoirs and powerhouses is paid to local governments impacted by the project. 

During a March board meeting, the PRRD directors discussed seeking an increase to BC Hydro’s Site C Regional Legacy Benefit Agreement payments due to unexpected increases in Site C’s generating capacity. However, this is separate to the grants outlined above.

“We do not pay grants for any power lines, or substations, but the one per cent gross revenues amount in the calculation is deemed to cover those improvements which are part of our electric-system operations,” Gammer said. 

Gammer noted the payment amounts for the agreement are not published online, but BC Hydro has on occasion released information in years past.