Today in the legislature I rose in Question Period to ask the Minister of Energy, Mines and Petroleum Resources about the escalating costs of Site C relative to the diminishing costs of renewables.
In the days ahead, the BC cabinet will make a decision on whether or not to proceed with the construction of Site C. It’s critical that cabinet make its decision based on the best available evidence. It’s clear to me that Site C is about to emerge as BC’s very own Muskrat Falls. A public inquiry in Newfoundland and Labrador will begin this January to determine why that hydro megaproject is so many billions of dollars over budget and so far behind schedule. It will also examine why the project was exempt from oversight by the Public Utilities Board much as the Site C project was approved without oversight from the British Columbia Utilities Commission.
Below I reproduce the video and text of the exchange. It is clear to me that the BC Liberals were feeling very uncomfortable with the line of questioning as their heckling was so loud and ongoing that I had to stop several times.
A. Weaver: I see the members on the opposite side here are somewhat troubled about question period and are a little feisty today.
I’d like to take us back, hon. Speaker. I’d like to take us back to the previous decade, when Site C was advanced to stage 3 of the approval process. Its price tag then was somewhere between $5 billion and $6.6 billion. Let’s now fast-forward to 2011. The price tag now was $7.9 billion. Two years later, now in 2013, the price tag was $8.3 billion. Then the price tag grew to $8.9 billion, accompanying a year-long delay in the construction schedule.
Now the B.C. Utilities Commission says this directly: “Given the nature of this type of project and what has occurred to date, total cost for the project may be in excess of $10 billion, and there are significant risks that could lead to further budget overruns.” The cost, they found, could end up being $12 billion — and this only two years into a nine-year project.
Interjections.
Mr. Speaker: Members.
A. Weaver: My question through you, hon. Speaker — if I’m allowed to actually ask it over the heckling from opposite — is this. It’s to the Minister of Energy, Mines and Petroleum Resources. Will the minister stop the Site C project…?
Interjections.
Mr. Speaker: Members.
The question, please.
A. Weaver: I’ll try again.
Will the minister stop Site C before it gets any worse and protect British Columbians from a project that already shows signs of having costs that will spiral completely out of control?
Hon. M. Mungall: Thank you to the member for the question. I find the question very interesting because I think it highlights exactly why this project should have gone to the B.C. Utilities Commission right from the very get-go. The fact that the official opposition, when they were in government, chose not to do that — I’ve said it before, and let me say it again — was the wrong choice.
This government has righted that wrong. We have finally gone to the B.C. Utilities Commission, and we were able to get answers to the questions that British Columbians had, questions that I’m sure that the Leader of the Third Party had as well. This government is taking all of that information into consideration as we deliberate on this very important issue for British Columbians, and we’ll be working and making a decision in the best interests of British Columbians.
A. Weaver: Thank you to the minister for the response. In contrast to the grim picture of ballooning Site C construction costs, let’s now take a look at the renewable energy sector. Wind, solar and geothermal power have become cheaper and scaled up faster than anyone predicted. The cost of wind power has decreased by 90 percent since the 1980s. In the last eight years alone….
Interjections.
A. Weaver: I know that members opposite don’t like to hear data, but if you could let me actually get it through, we’d be actually all benefiting from this.
In the last eight years alone, costs for wind power declined by 66 percent. And the costs are predicted to continue to fall. Bloomberg, for example, predicts that onshore wind costs will fall by 47 percent by 2040 and offshore costs will fall by 71 percent.
Now I get that they’re feisty opposite, hon. Speaker, because they don’t like the real data. They’re just living in an ideological world of mysterious data.
Solar energy tells a similar story.
Mr. Speaker: Member, the question, please.
A. Weaver: Thanks. If I could actually ask the question….
Solar energy tells a similar story. Costs have decreased by 68 percent since 2009, and they’re projected to decrease by a further 27 percent in the next five years. We have a window of opportunity now to harness renewables and build power that puts us on the cutting edge of innovation and provides local jobs and benefits.
Mr. Speaker: Member, the question please.
A. Weaver: My question — if I can get it above this background of raucous Liberal members — to the Minister of Energy, Mines and Petroleum Resources, is this: are you prepared to forgo this generational opportunity to harness renewables by continuing in the B.C. Liberal footsteps with building a doomed megaproject?
Hon. M. Mungall: It’s clear that members opposite sure are feisty today. I’m glad that the member did get his question in.
He will note that part of my mandate letter is to build that road map into the future in terms of B.C.’s energy policy, looking specifically at our opportunities — our tremendous opportunities — at renewables.
But for today, we have to address this issue of Site C. No decision has been made, but we are in the decision-making process, and we take it very seriously. This is a very important decision for British Columbians well into the future, and that’s why we have ensured that we’re doing our due diligence by starting with the B.C. Utilities Commission.
We’re looking at the information that they brought forward as well as the incredible amount of information that has come out over the years about Site C, and we will be making a decision that works for British Columbians today and into future generations.
3 Comments
Hon. M. Mungall,
Is your last statement: ” we will be making a decision that works for British Columbians today and into future generations” an honest statement or just rhetoric? I realize that all parties do the utmost decisions to stay in power as long as possible.How refreshing and productive it would be if they made decisions that truly enhance the well-being of its citizens.
The Liberals justify Site C by saying it will provide firm reliable power, unlike most renewables which are intermittent.
If gas-fired Burrard Thermal was restored as a standby plant it could act as backup for renewable power as well as for the Columbia River Treaty power.
Interesting how most utilities in N. America are using some nat. gas for generating inexpensive reliable power, which has driven the market price down to $30 a MWh. No modern Hydro dam can compete against that, as Manitoba, Quebec and Nfld are learning the hard way. Yet BC takes a holier than thou attitude and won’t even allow a standby gas-fired plant for peaking and emergencies. Meanwhile BC politicians of every stripe are OK with exporting the gas we don’t burn domestically as LNG. Never mind that LNG requires enormous liquefaction energy, making it far dirtier than domestically burned gas. A single gas-burning LNG export terminal would emit more than double the GHG emissions of a combined-cycle gas turbine power plant producing Site C’s energy of 5,100 GWh/yr. The hypocrisy is astounding and it’s cost Hydro ratepayers billions.
This sucks that it has to be asked for when it was all illegal to begin with . That is to waste our money on a huge emptiness for all.