A multi-billion-dollar, 1,100 megawatt hydroelectric power dam with a potential lifespan of 100 years is under scrutiny by utility regulators in the Canadian province of British Columbia.

Known as Site C, the project would be a third dam and generating station on the Peace River in northeast B.C. If built, the project would provide 1,100 MW of capacity and about 5,100 gigawatt hours of energy each year to the province’s electricity system.

A final BCUC report on the Site C project is expected in early November. Credit: BC HydroThe provincial government in August directed the British Columbia Utilities Commission (BCUC) to examine the impact on consumers associated with continuing, suspending or ending the project. If completed, the project could cost around $8.8 billion Candian dollars ($7 billion).

The BCUC delivered its preliminary report in September and asked for further input. A final report is expected around November 1.

In its preliminary report, the CPUC says that as of June 30, the Site C Project was on time for an in‐service date of November 2024. It also says that a “reasonable estimate” of the cost to end the project and remediate the site is $CA 1.1 billion ($870 million).

It cautions that ending the project would trigger incremental costs to replace the needed energy that would be produced by Site C with alternative sources of energy.

And it also says that “given the lack of clarity with respect to some of the costs,” it is too early to calculate total project costs should it be suspended and restarted later on.

In its filing with the regulatory body, BC Hydro said that cancelling construction and acquiring new resources would cost $CA 7.3 billion. Ending construction would cost $CA 3 billion.

In December 2014, Site C received approval from the provincial government to start construction. BC Hydro, the project developer, says that a three-year environmental review found that the effects of the Site C project were justified by its projected long-term benefits, which would stretch into the next century. Construction started in summer 2015 with an in-service date of 2024.

But a new provincial government took power after elections in May. It directed the BCUC to examine the Site C project.

“The previous government refused to allow our independent energy watchdog to examine the project to determine if it was in the public interest,” said Mines and Petroleum Resources Minister Michelle Mungall. “That was wrong. We’re sending this project to the BCUC to ensure we make the right decision for B.C. families.”

The BCUC says that Site C is an exempt project under the Clean Energy Act, which means that the commission previously had no jurisdiction over it. However, under section 5 of the Utilities Commission Act, the Lieutenant Governor in Council is empowered to set "terms of reference" and direct the BCUC to look into any matter.