A hydroelectric venture in central Labrador should serve as a cautionary tale for B.C. and its own ambitions to build a multibillion-dollar dam in the province香蕉视频直播檚 northeast, the former head of Newfoundland and Labrador香蕉视频直播檚 public utilities regulator says.
David Vardy, a former economics professor and retired civil servant in that province, published a letter Tuesday addressed to the B.C. Utilities Commission containing more than a dozen recommendations based on lessons learned from Muskrat Falls.
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The utilities regulator was tasked earlier this month by B.C.香蕉视频直播檚 new NDP government to review the economic viability of Site C, an $8.8-billion energy project under construction on the Peace River.
香蕉视频直播淏.C. has the luxury of being able to stop this now without going any further,香蕉视频直播� Vardy said in an interview. 香蕉视频直播淚n terms of the take-away from Muskrat Falls: It香蕉视频直播檚 not too late to stop it.香蕉视频直播�
Vardy香蕉视频直播檚 letter outlined the similarities between the two provinces香蕉视频直播� megaprojects: Both are backed by powerful Crown corporations, both were exempt from the usual regulatory oversight process, at least initially, and both have experienced ballooning costs over time.
The price tag for Muskrat Falls has more than doubled from original estimates, swelling to $12.7 billion in the province of only about 525,000 people. Vardy said the project香蕉视频直播檚 cost of about $24,000 per person would double the province香蕉视频直播檚 per capita net debt and pose a major threat to its solvency.
Vardy encouraged B.C.香蕉视频直播檚 Utilities Commission to ensure Site C is built according to current energy needs and is made as adaptable as possible, warning that the rapid pace of technological advances could make the project obsolete before long.
He also emphasized the importance of independent public oversight and a rigorous public review process, lauding the analysis being conducted by the utilities commission.
The review began Aug. 9, with interim findings due six weeks later and a final report expected by Nov. 1.
The commission香蕉视频直播檚 review process in B.C. was once standard before the previous Liberal government香蕉视频直播檚 clean-energy laws permitted some projects, including Site C, to circumvent the regulatory process.
An email from B.C.香蕉视频直播檚 Energy Ministry said the government would consider the results of the report, as well as environmental and First Nations considerations, before making a timely decision on the future of Site C.
Energy Minister Michelle Mungall declined further comment 香蕉视频直播渙ut of respect for the independence of the review process.香蕉视频直播�
BC Hydro could not immediately be reached for comment.
The Independent Contractors and Businesses Association told the utilities commission in a statement released Tuesday that BC Hydro must complete Site C.
香蕉视频直播淭he Site C dam has been the subject of a robust, nearly three year, independent review and its business case is solid,香蕉视频直播� president Chris Gardner said. 香蕉视频直播淲e cannot produce this kind of high quality, reasonably priced, clean energy anywhere.香蕉视频直播�
NEWS RELEASE: ICBA makes the case for to the BC Utilities Commission.
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There are about 2,400 people working on Site C.
Gardner described Site C as an 香蕉视频直播渁ll-important backbone香蕉视频直播� that would allow B.C. to transition to other renewable energy sources, adding that ratepayers cannot be expected to spend billions of dollars and get nothing in return.
But Vardy dismissed the logic of chasing money already spent, which he called sunk costs.
香蕉视频直播淭he key consideration must be future costs,香蕉视频直播� he said.
香蕉视频直播淲e may find it very difficult to walk away from an investment 香蕉视频直播� but what really counts is how much money you香蕉视频直播檙e going to have to spend before you get something that香蕉视频直播檚 worth anything.香蕉视频直播�
Geordon Omand, The Canadian Press
