British ColumbiaB.C. Hydro says in a “lessons learned report” to the British Columbia Utilities Commission that it’s on track to complete the project on the Peace River within a $16 billion budget.B.C. Hydro blames the huge overrun on the pandemic, as well as a failure to budget for low-probability risks. The Canadian Press · Posted: Nov 03, 2025 8:58 PM EST | Last Updated: 2 hours agoListen to this articleEstimated 2 minutesThe Site C dam as seen from the public viewpoint outside Fort St. John, B.C., on Aug. 5, 2025. The massive hydroelectric project ballooned in costs significantly over the years, and B.C. Hydro said it is expected to finish with a $16 billion budget. (Matt Preprost/CBC)British Columbia’s power utility says it should have been more proactive about ballooning costs on the massive Site C hydroelectric dam project, partly blaming a failure to budget for “low-probability, high-consequence risks.”B.C. Hydro says in a “lessons learned report” to the British Columbia Utilities Commission that it’s on track to complete the project on the Peace River within a $16 billion budget.But that’s almost double the original 2014 budget of about $8.8 billion, which was increased twice, in 2018 and 2021.B.C. Hydro blames the huge overrun on the pandemic, as well as a failure to budget for low-probability risks that included substantial geotechnical problems.WATCH | Site C able to produce more power than forecast:Site C able to produce more power than forecastCommunities in northeast B.C. say the province and B.C. Hydro need to deliver more benefits from the Site C dam now that the $16-billion megaproject is able to produce more electricity than first projected. As CBC’s Matt Preprost reports, leaders argue that increased power capacity should mean more funds to address the project’s impact. The utility says it should have “ramped up its internal project resources more proactively and sooner.”Site C is the third hydro dam on the Peace River in northeastern B.C. and it provides enough electricity to power about 450,000 homes every year. The 224-page report, submitted last Thursday, says future projects should better communicate the breadth of risks with the potential for significant impacts on budget and scheduling.WATCH | The real cost and who stands to gain from Site C:Who stands to gain from the massive Site C dam?After nearly a decade of construction, the massive Site C dam is finally generating electricity. But the debate about the megaproject is far from over. While it’s meant to power thousands of homes and electric cars, what is the real cost and who stands to gain? Camille Vernet reports.An executive summary says that, “consistent with industry best practices,” the methodology of the project’s cost-risk analysis meant that unlikely risks were excluded from the original budget. “Accordingly, the project contingency and project reserve were both insufficient to absorb the full costs when these high-consequence, low-probability risk events materialized.”It says that while the COVID-19 pandemic was “unforeseen,” the potential geotechnical challenges were understood.Enhancing the dam’s right bank foundation accounted for $1.1 billion of the overall budget increase, left bank cracks accounted for $600 million, and construction delays caused by the COVID-19 pandemic accounted for $1.6 billion.Further costs increases were related to contractor claims, redesigns, and other factors, it says. However, the report also says the challenges that sent the budget soaring were met with “ingenuity and determination.””Overall, [B.C.] Hydro reflects on the Site C Project with pride and a commitment to learn and improve,” the summary says.
B.C. Hydro says it should have been more proactive as Site C costs ballooned to $16B
