BC Hydro says it has a way to meet the province’s future electricity needs, but it’s going to cost taxpayers more than originally thought.
On Wednesday, the utility published a new description report for its massive Site C project, a proposed 1,100-megawatt hydroelectric dam on the Peace River in northeast B.C.
The project’s price tag now totals $7.9 billion. That’s a $1.3 billion increase from BC Hydro’s 2007 cost estimate.
At the time, the utility believed Site C could supply power at a cost of $85 per megawatt hour.
The latest estimate pegs the cost between $87 and $95 per megawatt hour.
One of the key differences between BC Hydro’s 2007 proposal and the current project description is capacity.
Site C’s generating capacity has increased 22% to 1,100 megawatts when compared with the 2007 design.
“This additional capacity, achieved through larger generating units, is similar to having more horsepower in a car,” Hydro said in its latest report.
“It provides improved capability for BC Hydro to meet winter peak loads, and allows for greater integration of intermittent renewable sources, such as wind.”
The project is also expected to produce 11% more energy per year than originally planned, and the design has been upgraded to include improved foundation stability, seismic protection and spillway safety.
Hydro believes the province’s electricity needs will grow approximately 40% in the next two decades, and Site C has the ability to power more than 450,000 homes per year.
The project is also expected to create up to 35,000 direct and indirect jobs through its seven-year construction period. But the project is far from a sure thing.
Site C requires environmental certifications and other regulatory permits and approvals before it can proceed to construction.
The province also has the duty to consult with local aboriginal groups affected by the project, some of which are already opposed to it. (See “First Nations question Site C clean-energy claims” – issue 1095; October 19-25, 2010.)
The updated proposal comes two months after BC Hydro filed an application with the B.C. Utilities Commission to raise rates 32% over the next three years to pay for $6 billion in infrastructure upgrades.
The upgrades do not include Site C.
Joel McKay