AHN DEC 14 2017

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THURSDAY, DECEMBER 14, 2017 Vol. 74, No. 50

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HEAVY-HEARTED HORGAN PUSHES PEACE POWER

Site C dam will be completed, total spend pushed to $10.7 billion

Landowners lament; dam’s troubles not over

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B.C. Premier John Horgan, flanked by his environment and energy ministers George Heyman and Michelle Mungall, announces the Site C construction will continue to completion on Monday, Dec. 11.

Celebration, condemnation as Horgan looks to sweeten the pot and soften the blow matt preprost, amy smart, lindsay kines, and nelson bennett

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B.C. Premier John Horgan says construction of BC Hydro’s now $10.7-billion Site C dam will be completed. Horgan gave the Crown utility the green light to carry on in a hotly anticipated decision handed down at the legislature Dec. 11, four months after his government ordered a review of the project in August. “We have listened, we have deliberated and we have debated and, at the end of the day, we’ve come to the conclusion that although Site C is not the project we would have favoured and it’s not the project we would have started, it must be completed to meet the objectives our government has set through mandate letters to ministers and commitments to the people of B.C. during the election campaign,” Horgan said. Horgan said his government made the decision with a heavy heart, and stood next to Energy Minister Michelle Mungall, who herself appeared to hold back tears through the announcement, and Environment Minister George Heyman. Horgan took an emotional pause when explaining that the decision had divided his own home—his brother disagreed with it, as did his wife, Ellie. “I can’t think, in the 30 years I’ve been involved in public policy, of a choice that was more difficult than this one,” he said After nine hours of deliberation, cabinet’s decision

MORE: Treaty 8 Nations promise injunction, treaty rights lawsuit /A5

MORE: Praise and rage over NDP’s controversial decision /A7

came down to a math equation: Comparing how much money has been spent, how much remains to be spent and comparing those figures with the alternative of getting energy elsewhere. Although the projected cost of the project has risen to $10.7 billion from $8.8 billion, the province says it makes the most financial sense to continue moving forward. Cancelling Site C would have meant an “unavoidable” $4-billion hit on either BC Hydro’s or the province’s books, Horgan said. “It would have meant a 12 per cent rate increase immediately and foregoing important capital projects like schools, bridges and transit, and other important initiatives across British Columbia,” Horgan said. Cancelling it could also mean creating the province’s largest deficit, destroying the province’s credit rating and wiping out 80 per cent of B.C. Hydro’s equity. Site C expenditures have reached $2.1 billion so far, the government says. BC Liberal and Peace River North MLA Dan Davies said Horgan’s decision to continue was good news and sends a message of certainty to investors.

“This is good news and a guaranteed way to secure our energy needs that we know we’re going to need in the future,” Davies said. “This has been the most reviewed project in British Columbia’s history, by far. It’s unfortunate that the NDP came to the same conclusion that we came to. As we move forward, it’s now our job as official opposition to make sure that this project is done in the most cost-effective way that protects ratepayers and protects taxpayers.” Turnaround plan will keep project on time, budget, NDP says The government also announced a “turnaround plan” on the dam that includes a project assurance board made up of BC Hydro, independent experts, and government to oversee future contract awards to deliver the project “on time and budget.” The government also announced a food security fund that will use revenues from Site C power to support farm projects across the province, on top of an already announced $20-million fund for Peace Region farmers.

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It’s one foot in front of the other for Peace Valley landowners who were left dismayed by Premier John Horgan’s decision to continue construction of Site C. Ken Boon, president of the Peace Valley Landowner Association, was hopeful Horgan was the answer to stopping a project he and his wife, along with their neighbours throughout the valley, have been fighting for decades. To hear Horgan admit the dam was past the point of no return was added insult and injury for the Boons, whose third-generation farm at Bear Flat was expropriated last December to make way for the dam and a realignment of Highway 29. “It’s hard for any of us to predict the future right now,” Boon said. “Obviously, Horgan has announced they’re going to proceed. What’s going to happen next though? Are the geotechnical issues going to cause further costs and delays? The First Nations, are they going to receive an injunction to stop the work? Is the NDP party going to implode?” Boon said he didn’t vote for the NDP in the May election, but had been impressed with its new government until now. He cast aside Horgan’s spin on his decision, saying the premier took bad advice on how to amortize the estimated $4 billion of construction, planning, and remediation costs of cancelling. Boon’s organization had been working with U.S. energy consultant Robert McCullough, who tried to dispel those myths in a Nov. 30 meeting with Horgan’s cabinet. “We put our faith fully in this BCUC review and engaged in it in a big way, and at great expense,” Boon said, adding he can’t see his landowner group pursuing more legal action alongside Treaty 8 First Nations. The dam has plenty of outstanding troubles that could further drive up its cost, Boon added. There are plenty of concerns to address throughout the valley, including Highway 29 realignment, farm relocations, and plans to find and tap new water wells for residents. “This could have been a defining moment for the NDP to get one of the keys things they had to deal with and get it right. They’ve taken on all of the problems of Site C and adopted them as their own,” Boon said.

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