B.C. Hydro has filed submissions with the provincial and federal governments on its Site C Dam project with a $2-billion increased price tag to $7.9 billion.
Despite the increased price tag, B.C. Hydro says it will move the project ahead because it is still among the most cost-effective options available to meet the province's electricity needs.
The mega-project in northeast B.C., if it was approved, is expected to have spinoff benefits for Prince George, a service and supply centre in northern B.C.
B.C. Hydro said the cost of the project has increased from $6 billion in 2007 because the design has been updated, but also because of labour and material costs have risen. The design was updated to meet improved environmental and seismic standards.
The project is estimated to deliver electricity at $87 to $95 per megawatt hour, less than the price of recent power calls from biomass, run-of-the-river and wind, at $129 per megawatt hour.
"When compared to other alternatives, it makes a very effective cost for rate payers," B.C. Hydro spokesman David Conway said Thursday.
The provincial and federal regulatory agencies still have to determine exactly how the review will unfold, but it's expected to take 18 months or more.
The project itself has a seven-year construction timeline, and would provide and estimated 7,000 direct jobs and another 28,000 spinoff jobs, according to B.C. Hydro.
Conway said the Crown agency has already been consulting with the public and First Nations on the project, including in Prince George. Those consultations are expected to continue, although there has been criticism of the project from some Peace River area residents, First Nations and environmental groups.
