PVLA and PVEA Call For Immediate Suspension of Construction Following Release of Deloitte LLP Reports on Site C

PVLA and PVEA staff

SEPTEMBER 11, 2017 - VANCOUVER, BC – The Peace Valley Landowner Association (PVLA) and the Peace Valley Environment Association (PVEA) call on the BC Government to immediately suspend construction on Site C pending completion of the British Columbia Utilities Commission (BCUC) Site C Inquiry. 
The Deloitte LLP Reports on Site C, released by the BCUC on September 8, make several key findings that support an immediate suspension of construction. These findings can be summarized as follows:
On Delays and Cost Overruns – There is likely to be a cost overrun of $.8 to $4.3 billion or 10% to 50%.

  1. Site C faces a real risk that it could miss the 2019 Start of River Diversion costing BC ratepayers $.8 to $4.3 billion more.

  2. Canadian hydroelectric dams usually experience significant delays and cost overruns. Recent projects in Manitoba and Newfoundland had cost overruns of 55% to 90%.

On Energy Demand – Site C is not needed.

  1. BC Hydro systematically overestimates demand for electricity by up to 30.8%.

  2. Deloitte’s revised forecast shows that Site C is not needed.  Put another way, the amount by which BC Hydro has exaggerated forecast demand for electricity is larger than the capacity and energy provided by Site C – 1,100 MW and 5,100 GWh, respectively.

  3. Both Deloitte and BC Hydro forecast higher inputs for the demand for electricity than Bloomberg, Wood Mackenzie, ABB Power and PIRA Energy.

On Alternatives to Site C – There are environmentally friendly and less costly alternatives.

  1. Deloitte used their revised electricity demand forecast and power generation options to produce an environmentally friendly and apparently less costly power generation portfolio with existing hydro upgrades, geothermal, and wind.

  2. In its power generation portfolio, Deloitte used a price for wind power that is higher than the price achieved elsewhere in North America.

A more detailed backgrounder prepared by McCullough Research, including several other important key findings on the Deloitte LLP Reports, can be found by clicking here or at peacevalleyland.com/sitecinquiry.   
“It’s time to stop throwing good money after bad,” says Ken Boon, PVLA President. “The Deloitte Reports confirm what we have been saying all along: Site C is an unnecessary, costly dinosaur when compared to environmentally friendly and less costly alternatives.  We need to complete the Site C Inquiry, but suspending construction is the financially prudent thing to do given the Deloitte findings.”
A further McCullough Research report on the implications of the Deloitte Reports for the future of Site C will be released on Wednesday, September 13, 2017.



Robert McCullough is Principal of McCullough Research in Portland, OR, and for over thirty-seven years has advised governments, utilities, and aboriginal groups on energy, metals, paper, and chemical issues. He has testified repeatedly in state, federal, and provincial courts as well as before Congress and regulatory bodies. His testimony in front of the Senate Energy Committee is credited with initiating the Enron trading investigations during which he worked for the U.S. Department of Justice and three western attorneys general. He has consulted for U.S. and Canadian clients on hydroelectric issues in many states and provinces, including on many occasions, presenting on issues before Canadian regulators.
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