Peace River Site C Hydro Project

An option to help close B.C.’s growing electricity gap Summary: Stage 1 Review of Project Feasibility DECEMBER 2007 Site C Hydro Project An option to help close B.C.’s growing electricity gap Stage 1 Summary

This document provides an overview and summary of the Stage 1 review of the proposed Site C project. This Stage 1 review of project feasibility was a review of existing studies and historical information about the Site C project, with a view to determining if there is enough potential to address key impacts to move to the next stage of project planning and development. This information was reviewed in the context of projected energy demand now and into the future, and an analysis of the expected supply to meet that demand. S ITE

C

A growing province with growing electricity needs Feasibility Project of Stage 1 Review

A heritage built for generations six years, BC Hydro has been a net importer of electricity. We now depend on other Clean, abundant electricity has been the key jurisdictions to supply between 10 and 15 to our province’s economic prosperity and our per cent of our electricity needs. quality of life. By planning ahead, we can ensure that future generations of British Columbians are able to enjoy the same benefits of low-cost, A growing electricity gap reliable power that we enjoy today. In 2006, BC Hydro produced its Integrated and our province’s economic Electricity Plan, which forecasted our province’s development are inextricably linked. In the two long-range electricity needs and examined decades that followed the creation of BC Hydro existing and potential resources to meet in 1961, our province undertook some of the those demands. This plan notes that electricity most ambitious hydroelectric construction consumption in B.C. is expected to increase projects in the world. Large-scale projects, such by as much as 45 per cent over the next two as those on the Peace and Columbia rivers, decades – creating a significant gap between played an essential role in providing our province supply and demand. with secure access to reliable, renewable, low- B.C. is now cost power. Known today as BC Hydro’s heritage By planning now, BC Hydro is working to consuming more assets, these dams help provide an electricity close this gap so that British Columbians will continue to enjoy the benefits of a secure, electricity than we supply to British Columbians that is 90 per cent clean – an achievement that few jurisdictions in reliable and affordable electricity supply. generate the world can claim. There are three ways this will be done – by As our province and our economy continue to conserving more electricity, by buying more grow, so does our demand for electricity. And as electricity from independent power producers impressive as our hydroelectric heritage is, it will and by investing in our existing assets and new not be enough to provide future generations resource options. of British Columbians with the energy security they will require. We are now consuming more electricity than we generate. In fact, for the past

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) h W (G y g er n E 85,000 80,000 75,000 70,000 65,000 60,000 55,000 50,000 45,000 40,000 2025 2020 2015 Forecasted Data phase-out of Burrard drop re ects planned Significant new electricity resourceswill be needed to close the gap. 2010 2005 New Power Smart encouraging are initiatives New Power businesses and communities people, by make to a difference B.C. throughout taking leadership in conservation and energy efficient These include: new energy efficiency. smartproducts and buildings, metering electricity and infrastructure, incentives, audits, schools and local governments. for programs innovations explore to continues also Hydro BC in conservation the Conservation through Nearly Initiative. Research 2,000 residential conserve to volunteered have customers using smart by energy track electricity to meters gathered information The consumption. track their better consumers to will allow and adjust their habitsconsumption patterns, decisions inform help also will It accordingly. structures can rate new residential about how efficiencyencourage energy and conservation. a play will continue to While BC Hydro in conservation,leadership role it will take the personal leadership in households across this conservation achieve to province target. curb to the Households will not only have in electricity but also consume growth use, 10 per cent less electricity than they do today conservation the residential achieve to goal. can make we a big difference. Together, Based on data available July 2007 Based on data available Fiscal Year (year ending March 31) 2000 Forecasted Customer Demand Existing BC Hydro Supply Forecasted Gap Mid-range Demand Forecast Historical Customer Demand Historical Data 1995 B.C.’s electricityB.C.’s demands are forecast to grow between and per 25 45 cent the nextover years. 20 1990

85,000 80,000 75,000 70,000 65,000 60,000 55,000 50,000 45,000 40,000

) h W (G y g er n E onservation and energy efficiency and energy onservation BC Hydro’s Electricity Gap Hydro’s BC 2 C B.C.’s to help close first and best way The electricity conservation is through gap and SmartPower its Through efficiency. energy is a global leader in BC Hydro program, conservation, an ever-expanding providing help its to and incentives range of programs conserve, efficient, use customers be more British use less. and ultimately wisely, power enough electricity saving now are Columbians meeting the annual needs of equivalent to than 440,000 homes. more Plan BC Energy government’s provincial The the conservationrecognizes leadership that and challenges foster, has helped to BC Hydro plan sets an The more. do even all of us to British to Columbians for ambitious target needs 50 per cent of our new energy realize conservationthrough efficiency and energy by meeting this to is committed 2020. BC Hydro challenge. Leadership for a secure a secure for Leadership electricity future

SITE C Stage 1 Review of Project Feasibility S ITE

Innovative power projects Reinvesting in our existing assets C Review of Project Feasibility Project of Stage 1 Review BC Hydro is also looking to innovative power With its ongoing Resource Smart initiatives, projects, such as small hydro, wind power and BC Hydro continues to make important biomass projects developed by independent investments to modernize, expand the capacity, power producers, to help meet future demand. and extend the life of its existing hydro assets. BC Hydro has contracted for the purchase of By modifying, updating and retrofitting our approximately 15,000 GWh/year of electricity existing generation facilities, such as adding a from independent power producers to date, of fifth unit to the Revelstoke generating station, which 8,000 GWh/year is now online – enough BC Hydro is increasing efficiency and electricity energy to power approximately 800,000 production with little or no environmental homes. The majority of power acquired from impact. Extending the capacity of these facilities independent power producers since 2002 has will add enough electricity to power some been clean, renewable energy. 130,000 homes each year. These investments BC Hydro also has three new competitive in our existing assets will continue in the years procurement processes underway to acquire ahead to ensure that the backbone of our additional power to close the electricity gap. system remains strong and reliable. These include: •• a standing offer for clean electricity projects Even with conservation, of less than 10 megawatts; purchases from independent •• a Clean Power Call, targeting 5,000 GWh/ power producers, and year of energy; and, •• a call for bioenergy projects that generate reinvestment in existing electricity from under-utilized wood assets, we will still need residues, including wood affected by the The BC Energy mountain pine beetle. to pursue additional sources of Plan aims to make electricity in if B.C. energy self- demand continues to sufficient while grow as projected charting a path for conservation, energy efficiency and clean energy

Conservation is our first and best option to close B.C.’s electricity gap. 3 Large power projects, such as hydro with such as hydro projects, power Large gas- coal and reservoirs, carbon-sequestered unique challenges. In generation, have fired and environmental variousaddition to social, theycosts and benefits, financial typically substantial for long lead times require consultation, Nations stakeholder First and and design engineering, regulatory review, these typesconstruction. time, the same of At most other an advantage over projects have they because supply a significant resources which is electricity, amount of dependable in times of our province to especially valuable such as during the coldest evenings peak use, they stand of firm power, sources As of winter. (such as resources intermittent in contrast to whose capacity or small hydro), wind power electricity produce to can vary depending In fact, large on conditions such as weather. support to the required projects are power to resources, of renewable development intermittent to back-up reliable provide resources. Maintain public ownership of BC Hydro and BC Transmission Corporation Transmission and BC Maintain of BC Hydro public ownership Maintain electricity our competitive advantage rate electricityAchieve self-sufficiency by 2016 2026 by power” “insurance additional Acquire Encourage small electricity generation projects Establish a $25 million innovative clean energy fund clean energy Establish a $25 million innovative energy renewable for Strategy Implement Bioenergy the B.C. electricityGenerate wood and waste mountain pine beetle wood from Meet 50 per cent of BC Hydro’s new electricity conservation needs through 2020 by Meet 50 per cent of BC Hydro’s by 2010 Implement efficient building standards energy Zero greenhouse gas emissions (GHGs) from coal-fired electricity coal-fired from gas emissions (GHGs) generation greenhouse Zero all new electricity net GHGs from projects Zero 2016 plants by existing thermal power net GHGs from Zero electricity 90 per cent of total Ensure be clean or renewable continues to No nuclear power • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Energy security Energy Investing in innovation in innovation Investing Energy conservation and efficiency conservation Energy Environmental leadership Environmental : A future built on clean energy leadership built on clean energy PlanBC Energy : A future electricity meet its future can guided our province needs are actions ensure to BC Hydro’s . Leadership A Vision for Clean Energy Plan: BC Energy the Government of Britishby Columbia’s electricity make to our province plan sets targets The self-sufficient while charting a path greenhouse of growth the “arrest conservation,for efficiency to energy and clean energy human impacts the climate.” gases and reduce on framework electricity of low Policy public plan builds on the 2002 Energy The rates, private sector opportunities. and more supply reliable of BC Hydro, ownership with policy BC Hydro key in these four areas: direction plan provides The nvestigating new resource options resource new Investigating BC the help of all British Columbians, With is undertakingHydro conservation aggressive 50 per cent Plan’s effortsto meet the BC Energy conservation with 2020. But even by target conservation, independent from purchases in existing reinvestment and producers power additional pursue will still need to we assets, of electricitysources in British if Columbia as projected. grow to demand continues Electricity 2006 Integrated Plan BC Hydro’s this need will be particularlynotes in the acute planning 20-year Hydro’s second decade of BC must begin BC Hydro why is That horizon. adding new projects for options investigating dependable supply a large, that could provide of electricityin the longer term. Closing the remaining remaining the Closing electricity gap 4

SITE C Stage 1 Review of Project Feasibility S ITE

BC Hydro remains committed to investigating Natural gas facilities are another large-scale C all large-scale options that can fulfil the Energy option that could provide firm reliable power Feasibility Project of Stage 1 Review Plan’s goal of providing clean energy to British to meet future demand. However, recent Columbians. Our province is fortunate to have project proposals in the Pacific Northwest have several potentially attractive resource options, attracted significant opposition because of air including hydroelectric dams, biomass facilities, quality impacts and new projects will need to clean coal facilities (not yet available) and be considered in the context of new provincial natural gas plants. Each option presents unique climate change policies, including ensuring advantages and disadvantages. 90 per cent of new electricity continues to be As the provincial government is firmly clean or renewable. committed to keeping its electricity sector The energy from the Burrard Thermal natural one of the cleanest in the world, each of gas generating station, which is now old and these options needs to be considered within inefficient, needs to be replaced. Consistent the provincial policy context and each must with the BC Energy Plan, BC Hydro is working to meet very stringent environmental standards. put in place firm electricity by 2014 to replace However, with advances in technology, some what would have been produced at the plant. sources of energy that do not meet policy However, if practicable, Burrard Thermal may be standards today could do so in the future. retained as a potential source of back-up power The BC Energy Plan stipulates that coal will for the Lower Mainland in the future. We will still only be allowed as a resource for electricity Finally, with respect to large hydro, the need to pursue generation when it can reach zero greenhouse BC Energy Plan specifically calls for BC Hydro gas emissions. As “clean-coal” technology and the provincial government to “enter additional sources with full carbon sequestration is still not yet into initial discussions with , of electricity in commercially available, it remains out of the the province of Alberta and communities to British Columbia scope of BC Hydro’s current planning horizon. discuss Site C to ensure that communications The use of nuclear power as a large-scale regarding the potential project and the option for generating electricity is also not an processes being followed are well known.” We available option, as it was prohibited under the are ready to begin that process now and hope 2002 Energy Plan. This direction was reaffirmed to engage British Columbians in a meaningful in the BC Energy Plan released in 2007. discussion about meeting their electricity needs in the years ahead.

Looking ahead to 2025 1

Filling the Gap 2: 50% 70% 30% Conservation 3 BC Hydro Gap 50% Resources and IPPs 4 Other Resources

A mix of other resources will also be needed, such as:

Based on data available July 2007. • Wind • Site C 1 Forecasted electricity demand for 2025 is between 73,000 • Natural Gas • Other Hydro and 83,000 GWh. Current electricity supply is 54,000 GWh. • Bioenergy • Coal (carbon-sequestered) 2 Approximately 19,000 – 29,000 GWh/year will be needed to close the forecasted gap. • Geothermal • Solar, tidal and other 3 The BC Energy Plan set a target to acquire 50% of BC Hydro’s technologies new electricity needs through conservation by 2020. 4 Includes BC Hydro heritage assets and contracted amounts with independent power producers (adjusted for attrition). 5

process BC Hydro Hydro BC part the of recommends recommends consultation as as consultation comprehensive comprehensive Site C evaluation C evaluation Site next of the stage In evaluating Site C as a potential resource Inresource C as a potential evaluating Site a stage-by- has adopted Hydro option, BC provincial the help inform to stage process about whether decision government’s the next to stage of project proceed to at the end of each stage. development is a summary balance of this document The of the Stage 1 report and the next to steps and Project be taken in Stage 2 (Consultation Definition). It is important to underline, move a decision on whether to that however, constructionthe project forward to years is still work and analysis is required Much more away. decision about the project can a final before be made. Conceptual design of Site C hydroelectric facility conceived). C hydroelectric (as previously of Site design Conceptual 6 Site C is a potential third dam and hydroelectric hydroelectric dam and third C is a potential Site River the in station on the Peace generating northeast is one of many and region, province’s can help meet British options that resource electricity needs. Columbia’s has conducted Hydro Since June 2004, BC of existing information review a high-level purposeThe of this undertaking C. about Site within project feasibility review was to operating context current and BC Hydro’s benefits potential understand the better to with other and impacts C compared of Site BC part As options. of this review, resource reports lookedHydro studies, at existing and stakeholder as initiating engagement, as well review This studies. some new environmental in a reportis captured C Feasibility entitled Site Report, Stage 1 Completion at Review, available www.bchydro.com/sitec. What is Site C? Site is What

SITE C Stage 1 Review of Project Feasibility S ITE

Site C’s history concluded that while the project would have C significant impacts, it was indeed feasible. With Feasibility Project of Stage 1 Review The generation of hydroelectricity from the appropriate conditions placed on BC Hydro and Peace River in northeastern British Columbia a government commitment to respond to “the has a long history that has significantly shaped needs created in the region,” BCUC concluded our province. The first steps towards developing that the impacts could be “successfully and hydroelectric potential in the Peace River acceptably managed.” However, the BCUC area were taken in the 1950s, resulting in the recommended Site C not be approved because construction of two dams. The W.A.C. Bennett the electricity demand forecasts at the time did Dam and the G.M. Shrum generating station not warrant its development and more analysis began producing electricity in 1968, followed was required on alternatives to Site C. by the and generating Over the years, the Site C project has been station in 1980. During this period, further re-examined from time to time, but it was not investigation continued in the Peace River area until 1989 that the potential need for a new to identify the best location for a potential third supply of electricity was identified and Site C dam around the Fort St. John area. In 1958, five was revisited as one of the potential solutions additional potential sites were identified along to closing the demand-supply gap. A public the river: Sites A, B, C, D and E. consultation committee was created, and local In 1967, after further testing, only sites C and municipalities and key interest groups in the Clean, renewable E were considered viable options. In 1976, region were invited to discuss and review the BC Hydro chose the present Site C location. project. In 1991, the Peace Site C Summary hydroelectricity However, since there was no indication at the Status Report was completed, but work on from the Peace time that there would be a need for a new the project was suspended as opportunities resource option within the foreseeable future, River region of for demand-side management and gas-fired the plans were put on hold. generation were chosen. northeastern B.C. In 1982, BC Hydro submitted the Site C project to Since June 2004, BC Hydro has undertaken a has significantly the British Columbia Utilities Commission (BCUC) feasibility review to better understand Site C and shaped our for a comprehensive review and stakeholder its advantages and disadvantages, and build on consultation. Following in-depth study of province insights gathered about Site C since it was first Site C’s design and impacts, the Commission identified as a potential resource option.

The Peace Canyon Dam, on the Peace River near Hudson’s Hope. 7 facilities Williston Williston be located be located Site C would C would Site downstream Reservoir and and Reservoir two existing BC two BC existing from the existing from Hydro generating generating Hydro Alberta

Alberta

British British Columbia Columbia Dawson Creek Dawson Taylor Fort St John St Fort 97 A large hydroelectric project such as Site C as Site such project hydroelectric A large of MW 900 of range the in provide could of the existing eight per cent or about capacity, It system. would on BC Hydro’s peak demands GWh of electricity 4,600 approximately produce 460,000 homes. about power enough to a year, 1, its capacity and energy in Figure illustrated As mid-size a C Site make would production other hydroelectric BC Hydro’s to facility relative generating facilities. option C was examined as a resource When Site 1989 ago and again from than 25 years more work design engineering significant 1991, to much of this information However, was done. Therefore, than two old. decades more is now be must conceived originally as project the well as information reflect current to updated forward by incorporate new ideas brought as to regulatory Nations, agencies, First communities, project on focusing 2, Stage stakeholders. and muchdefinition and consultation, will include and technical consultation, research more and project options, identify today’s work to costs and benefits. study their potential to might project the to updates example, For or changes design include operating changes, potential minimize compensation projects to opportunities and wildlife, and fish to impacts as enhancing social benefits such provide to reservoir. uses of the proposed recreational Potential Site C Dam Site Potential

29 Pine River Pine

Alaska Highway (Hwy 97) Moberly River Moberly

Halfway River Peace River Peace Lake Moberly Peace Canyon Dam Canyon Peace 25 Potential Site C Reservoir Site Potential 20 Hope Hudson’s 15 10 Kilometres 5 Williston Williston Reservoir n overview of Site C Site of n overview 0

Peace Reach Bennett Dam W.A.C. The Peace River originates in the Rocky Mountain Trench and flows downstream into Alberta. into downstream and flows Trench in the Rocky River originates Mountain Peace The 8 A a key in plays River system role Peace The providing electricity supply, British Columbia’s annual one-third of BC Hydro’s approximately and the G.M. Shrum production from energy C Site stations alone. generating Canyon Peace the in facility hydroelectric third the be would part an integral forming of the Peace region, ByRiver system. taking advantage of the water C Site Reservoir, Williston at upstream stored the of cent per 30 produce to able be would Bennett Dam, W.A.C. electricity at the produced Further, reservoir cent of the per with five size. to the benefit of being able have C would Site the during energy of amount large a provide highest. when demand is at its months, winter be would dam C Site the defined, currently As It river level. be located would above 60 metres Bennett W.A.C. existing the from downstream kilometres seven dams, Canyon Peace and is location site The John. St. Fort of southwest enters River Moberly the where of downstream the from upstream kilometres 62 River, Peace the Alberta border.

SITE C Stage 1 Review of Project Feasibility S ITE

in limited supply due to high market prices or C other factors. Feasibility Project of Stage 1 Review Site C would have a significant upfront capital cost, a long operating life, and low operating costs if built. Early interim project estimates indicate that Site C could cost between $5 billion and $6.6 billion. These estimates reflect a levelized unit cost range from $46/MWh to $97/MWh in 2008 dollars. As a decision on whether to proceed to build Site C is still a few years away, any project cost estimates right now are only interim. As with any capital project, the final cost estimate will be fully known only after a competitive procurement process is complete and a final bid is accepted. This occurs just prior to construction. As an example, if a contractor were asked for Hugh Keenleyside Dam, near Castlegar. an estimate to build a home today, it would be possible to receive a cost estimate within a certain margin of error. But if the contractor was Site C would deliver firm electricity and asked for an estimate to build a house in 2012, dependable capacity with a high degree of it’s unlikely that a contractor would be willing to Site C would flexibility. Firm electricity can be depended upon take the risk of providing a firm estimate because to deliver a certain amount of energy per year. produce enough of potential future changes in interest rates, Dependable capacity provides power during inflation and labour market conditions. electricity to peak demand periods and is key to “keeping power about the lights on” in B.C. at critical times such as the Interim cost estimates are useful, however, coldest days of winter. Flexible energy can be in comparing the project to alternatives. This 460,000 homes dispatched at full output during peak load times estimate will be updated at each stage and (typically November to February) or at times will change as the project becomes more fully when other resource options are unavailable or defined and nears construction.

Putting Site C in perspective Site C is considerably smaller than BC Hydro’s three largest generating facilities.

Energy GWh / Year (Average) 14,179

Capacity (MW) 7,450 7,476

2,730 2,919 3,263 1,980 126 2,467 2,479 1,805 776 580 476 790 694 900

John Hart Kootenay Canal Bridge River Seven Mile Peace Canyon SITE C Mica Revelstoke W.A.C. Bennett

Figure 1

9 If built, Site C would C would Site owned asset owned be a publicly be a publicly Capability Capability Low dependable capacity Low Low dependable capacity Low Dependable capacity Reliable reduction in dependable capacity requirements Dependable capacity Dependable capacity dependable capacity Low Dependable capacity dependable capacity Low as the third project on one river system, it on one river system, project as the third by efficiencies gain significant would taking in the stored already advantage of water ReservoirWilliston generate and used to Bennett W.A.C. electricity at the upstream dams; Canyon and Peace dependable BC Hydro’s increasing by indirectly C would Site capability, energy support of intermittent the development such as wind power; and, sources energy by fluctuating not be affected C would Site gas fuel costs that could impact other options. resource energy • • • • • • and the provincial government are committed committed are government provincial and the to identifying further opportunities to benefit These Nations communities. First local and opportunities and discussed be reviewed will as part process. of the consultation C has these Site option, resource a potential As advantages: additional 1, it was Based on the project analysis in Stage C should be preserveddetermined that Site as electricity growing gap meet B.C.’s an option to and that the project should be taken the into next stage of evaluation, which is consultation and project definition. Energy QualityEnergy Intermittent Flexible, firm energy Flexible, Reliable reduction in firm energy requirements firm energy Flexible, base-loadFirm, energy Intermittent base-loadFirm, energy Intermittent Intermittent – seasonal Small hydro (run-of-river) Small hydro Tidal Tidal Solar Wind Biomass Natural gas Natural Coal Conservation Resource C) Site as (such hydro Large Energy quality and capability of B.C.’s potential electricity potential resources quality and capabilityEnergy B.C.’s of 10 Potential benefits Potential of significant a number deliver C could Site Britishto Columbians. benefits support C would Site the earlier, noted As clean to commitment government’s provincial electricity make generation and a valuable electricitycontribution towards self-sufficiency. in its commentary notes Plan the BC Energy onAs advantage chief “the dams, hydroelectric large reliable a provides it that is system hydro a of capacitysupply with both dependable and of source clean and renewable a and energy, no essentially produces Hydropower energy. carbon dioxide.” upfront significant have C would While Site to years and take than 10 capital costs, more of more a lifespan have it would come online, operating costs once and low than 100 years, operating and low long lifespan This built. makecost could ultimately it a cost-effective resource with other potential option compared supply of electricity a secure providing options, come. generations to for Adjacent regional districts and municipalities grants-in-lieu of property benefit from would BC Hydro well, C. As Site by generated taxes

SITE C Stage 1 Review of Project Feasibility S ITE

Comparing Site C C Review of Project Feasibility Project of Stage 1 Review

The economic and environmental impacts of B.C.’s potential electricity resources

Resource Financial cost Environmental impact

Air * Land Water

Low operating cost Affects wildlife Diverts a portion Small hydro No fuel cost habitat, traditional of stream flow; None (run-of-river) Large initial capital and recreational may impact investment uses recreational uses

Changes portion Low operating cost Affects wildlife of river flooded; Large hydro No fuel cost habitat, traditional Minimal affects flows (such as Site C) and recreational Large initial capital downstream and uses, agriculture investment fish habitat

Low operating cost No fuel cost Conservation None None None Can require initial capital investment

Significant fuel cost Nitrous Oxides largely controllable, Low operating cost Limited to plant Consumptive Natural Gas Carbon Dioxide site water use Moderate capital emissions must be investment offset **

Some sulphur Footprint would Even split between oxide or mercury include mine and Consumptive Coal fuel cost (coal) and emissions; carbon transportation water use service on capital dioxide emissions infrastructure must be captured**

Potential impacts Low operating cost Visual impact of on ocean floor, No fuel cost towers; typically Wind None mammals and located on ridges Large initial capital fisheries at some or on coast investment offshore sites

Low operating cost Dependent upon Low fuel cost fuel burned; Limited to plant Consumptive Biomass Large initial capital possible local air site water use investment impacts

Low operating cost Utilizes buildings; No fuel cost Solar None no change to None Large initial capital existing footprint investment

Moderate May affect fish, operating cost Limited to marine mammals Tidal No fuel cost None powerhouse and fishing footprint Large initial capital operations investment

* Based on emissions during operation. However, all resources except conservation have ** In addition, the BC Energy Plan mandated that 90% of total electricity continues to a GHG impact during construction and filling of reservoirs (for hydro with storage). be clean or renewable, which means no more than 10% may be generated through options such as coal or natural gas. 11 – Although a Agriculture is an important– Agriculture About half of the area flooded by flooded – About half of the area ssessment Assessment Environmental government Should the provincial C, continue pursuing Site decide to and it will be subject provincial to including regulatory review, federal environmental comprehensive assessment and permitting processes. During construction the which period, would there takewould years, seven about demands on the local inevitably be increased of the communityinfrastructure and the region. alsoSome heritage would sites and cultural has Hydro BC flooding. the by affected be the in assessments impact heritage conducted these impacts; these understand better to past continue during Stage 2. would reviews the creation of the reservoir would be forest of the reservoir be forest the creation would to be required study would Further land. forest determine the exact of productive area inventory and a timber conduct to a forest land, the area how as review as well supply analysis, flooding. before be prepared would Tourism and recreation Tourism Agriculture Agriculture Forestry net loss of attractive shoreline is expected net loss of attractive shoreline would of reservoir there as a result creation, suitable shoreline be substantial continue to camping existing activities, such as boating, for be would of exception and picnicking. Areas along the Moberly arms and Halfway of the recreation suitable for shoreline where reservoir, of flooding. as a result decrease is expected to of the reservoir result creation Overall, would activities new river-based to in a change from in a stable reservoir. opportunities recreation for economic activity in the region, focused on economic activity focused in the region, production and cattle crop and forage grain A number of farms the adjacent to ranching. of by the creation reservoir be affected would the reservoir flooding or being within through will conduct BC Hydro studies area. the safeline impacts determine potential in Stage 2 to on property and will consult with owners property affected potentially owners. the size the size

A safeline would be determined would A safeline – of the Williston Reservoir. There would also be would There Reservoir. Williston of the of realignment impacts the proposed due to Given the flooded area. from away 29 Highway years many completed that these studies were these impacts be thoroughly will need to ago, during and updated Stage 2 of the reviewed project. that is a conservatively setback around located the periphery the Beyond of the reservoir. the security and their of residents safeline, from safe possessions can be considered landslide activity Some or bank erosion. farms and communities within the residents, of route or along the proposed area safeline be affected 29 would Highway the realigned C proceed, Should Site C development. Site by farms and businesses will need some families, the flooded area. from away be relocated to 12 Community Potential impacts Potential significant provide if built, would project, The impacts create would also it However, benefits. Many reviewed. be thoroughly that must been conducted studies have environmental studies, Further years. C in previous on Site Nations community and First and stakeholder, vital next in helping consultation are steps all parties understand the social and better of these impactseconomic significance or mitigated be avoided, they may and how work primary will be the This compensated. all will continue through of Stage 2 and focus should it proceed. stages of the project, it evaluation the project process Throughout will be important C impacts viewed that Site are within the wider context resource of alternative impacts as options and their potential as well . Plan the BC Energy BC Hydro Should the project be approved, or mitigate minimize avoid, work to would impacts the construction from and operation C. Mostof Site direct impacts of the be would Peace in the inundation or flooding due to and Fort Canyon River valley between Peace St. John, and of portions of the Moberly and that the studies indicate Previous rivers. Halfway C dam is expected the Site by reservoir created 5,340 hectares of land, flood approximately to 1/20 in a reservoirresulting approximately

SITE C Stage 1 Review of Project Feasibility S ITE

Highway realignment – As a result of BC Hydro understands from consultative C the creation of the reservoir, sections of programs on Site C from 1982, 1991 and 2006 Feasibility Project of Stage 1 Review Highway 29 would need to be relocated. A that communities and stakeholders want: comprehensive review of alternative highway •• a fair and transparent consultation and realignments would be undertaken in Stage 2, environmental review process; and Project Definition and Consultation, to update right-of-way requirements to new Ministry of •• a comprehensive review of the project Transportation standards, to develop detailed impacts and benefits. maps and to engage in community consultation. The rights of the different First Nations groups in the region may be affected by the Site C project. Wildlife – A variety of wildlife species live in First Nations issues are a central component the Peace River valley. BC Hydro will continue for consideration in any review of Site C. BC to study ways to minimize wildlife impacts. An Hydro has had some recent successes in updated inventory of species, survey work and building respectful relationships and reaching habitat analysis will need to be conducted. agreements with First Nations on other initiatives. Further studies are planned in Stage 2 to better In entering Stage 2, initial discussions will take understand the potential impacts, as well as place with First Nations to gain input into the avoidance and mitigation options. consultation and engagement process, with the Fish – Creation of the reservoir would change aim of establishing protocol agreements to build Opportunities to the existing river habitat to reservoir habitat a framework for negotiations. avoid or mitigate in the inundated area. Changes to the habitat would result in the loss of some spawning impacts will habitat in the main stem and part of the lower be thoroughly tributaries. The change in habitat may also benefit some fish, by improving overwintering reviewed and Opportunities for conditions for rainbow trout, bull trout, Community Benefits assessed during mountain whitefish, and Arctic grayling. Stage 2 Extensive studies are planned in Stage 2 to As part of BC Hydro’s consultation understand the aquatic impacts and options for with communities, First Nations, and avoidance and mitigation stakeholders in the region, discussion will also focus on creating long-term First Nations and Stakeholders – The most benefits for the region. Proposed projects extensive feedback to date from stakeholders such as a Site C are much more than and First Nations on the Site C project was an addition to B.C.’s stock of heritage received during the 1982 BCUC hearing, and assets that deliver reliable power to most recently as part of the 2006 Integrated British Columbians. They are also an Electricity Plan engagement process. opportunity to provide a legacy of In 1982, although the BCUC recommended benefits for the communities that are the project not move forward on the basis of a directly affected by such large projects. lack of need and insufficient review of project BC Hydro will be seeking feedback to alternatives, it stated in its report: identify opportunities to benefit First “[While] the commission recognizes that major Nations, residents and communities impacts will result from the Site C project, the directly affected by the Site C project. commission concludes that they are not so large as to make them unacceptable. Provided that appropriate conditions are placed on Hydro and the government responds to the special needs created in the region, the impacts can be successfully and acceptably managed.”

13 S YE S YE NO S YE enough, particularly 20-year decade of the in the second be examined as to C should continue Site that horizon, planning option? resource a potential project characteristicsto date any been identified Have further C should not be considered that suggest Site as option? a resource to relative benefits overall sufficient offer to Does C appear Site further justify to the alternatives investigation? guide to further information Will C provide work on Site resource with other future C compared Site decisions regarding alternatives? Is the anticipated magnitude of the electricity of the magnitude Is the anticipated significant gap 1. 2. 3. 4. nswering four key questions about Site C about questions Site key four nswering A key four questions: to answers C provided of Site initial analysis BC Hydro’s A stage-by-stage approach conservation, is pursuing energy BC Hydro independent projects by of energy development in existing and reinvestment producers, power help close the electricitygenerating facilities to all possible alternatives, investigate we As gap. stage-by-stage a taking also is BC Hydro Large C. Site of evaluation the to approach a long lead time andprojects like C have Site consultation early evaluation of feasibility, require and regulatory Nations, with the public and First certification priorto construction operation. and At the end of each stage of the process, the will make government a decision provincial the next to stage of proceed about whether to project planning and development. furtherStage 2 will involve project definition, engineering including environmental, and socio-economic as well studies, with engagement as comprehensive First stakeholders, regulators, communities, of Nations and discussion with the province Alberta costs, understand the benefits, better to impacts and risks the end of the project. At will be government of Stage 2, the provincial C should decide if Site position to in a better be pursued as an option. continue to Next steps Next opportunities community benefits; for issues; environmental studies; geotechnical community including impact issues, on families living within the reservoir or re-alignment 29, of Highway area, safeline demands on infrastructure and other land impacts; tourism and mining, forestry, agriculture, issues; and, recreation issues. fish and wildlife • • • • • • • • • • • • 14 Much of the information currently known currently Much the information of about information This old. 25 years C is almost Site to fully updated significantly be needs to context today’s the project within understand options. and resource was predominantly review Stage 1 feasibility The existing studies and information of a review determining a viewabout the project, with to key address to potential is enough if there project of stage next the to move to impacts information This planning and development. in the context energy of projected was reviewed analysis an and future, the into and now demand that demand. meet of the expected supply to is it that is review this of conclusion The C as a Site investigate continue to prudent to energy the growing address option to potential of the project, including review Further gap. will studies, updating some previous significantly importantprovide about benefits, information impact, mitigation. costs and potential regional reportThe that local, recommended Nations First and stakeholders, provincial and an opportunityhave participate to in impacts key and studies which determining should be addressed. not are but include, study further for areas Key the following: to, limited Summary & Conclusions of Summary & Conclusions 1 Review Stage

SITE C Stage 1 Review of Project Feasibility S ITE

Involving local communities, There are significant opportunities for local C stakeholders and First Nations communities, customers, stakeholders, First Feasibility Project of Stage 1 Review Nations and the public to be involved as BC Hydro is committed to comprehensive BC Hydro explores how best to meet our consultation with communities, First Nations, energy needs. customers, regulators and stakeholders about the potential Site C project. Over the coming BC Hydro is guided by the BC Energy Plan and months, we will be moving ahead with a is committed to providing opportunities for comprehensive consultation process. We want consultation through all stages of the project. you to help us look at the scope and features of Part of the consultation process for communities the Site C project and the associated benefits directly affected by the potential development and impacts, locally, regionally and provincially. of a third dam on the Peace River will be a discussion of mitigating potential impacts, and Consultation plans opportunities for community benefits.

BC Hydro is seeking a solid understanding of First Nations how local, regional and provincial stakeholders At BC Hydro, we are committed to effective want to be involved in the consultation process communications and consultation with First for Stage 2. We will be asking for feedback on Nations, with the goal of building positive the design of the consultation program, as relationships. We are committed to working well as what topics should be discussed during fairly and equitably with First Nations as Stage 2, Project Definition and Consultation. decisions about how best to meet our energy Your feedback will help us develop opportunities needs are made. BC Hydro is for British Columbians to play an important As part of the evaluation and development committed role in reviewing Site C as an option to fill our of Site C, we will consult with First Nations emerging energy needs. to providing about the project and how, moving forward, As with most projects, there are economic, First Nations would like to be involved and opportunities environmental and social trade-offs that consulted. for consultation will require careful consideration. Part of the through all stages evaluation process includes assessing the project’s feasibility and the economic, social of the project and environmental benefits and impacts. Information obtained from new studies and analysis will help inform public discussions and consultation.

A stage-by-stage approach 1

STAGE 2 – Project De nition and Consultation

PRELIMINARY SCHEDULE Pre-Consultation: Fall 2007 – Winter 2008 Technical Studies & Analysis: Fall 2007 – 2009 Project De nition Consultation: 2008

STAGE 2

STAGE 1 Project De nition STAGE 3 STAGE 4 STAGE 5 Review of Project and Consultation Regulatory – Engineering Construction Feasibility Environmental Assessment 2 years

Complete Approx. 2 years Approx. 1 year Approx. 7 years

Consultation will occur in each stage of the project 1 Timelines are preliminary and may vary.

15 ffice: onsultation O onsultation Project Definition consultation Project ddress: ddress: ommunity C ax: 604-623-4332 1-877-217-0777 oll-free: Hydro Project: C Hydro Site River Peace T Email: [email protected] F www.bchydro.com/sitec Mailing A V6B 3W2 BC Vancouver, 2218, PO Box C 9948 100th Avenue, Fort St. John, BC V1J 1Y5 St. John, BC Fort 9948 100th Avenue, (Opening early 2008) design the design C project; the Site for program long-term providing options for generate to local communities and benefits Nations; First comprehensive impactsidentify issues and for assessment; environmental impacts; and minimize avoid to identify how and, the scope and in refining key assist BC Hydro Definition C during of Site the Project features consultation. For further information: For • • • • • • • • • • 16 How your input can input us help your How from input and feedback values BC Hydro regional Nations, First customers, communities, stakeholders and the public and provincial in the Pre- input Your C project. Site about the and documented will be process Consultation shape with British and used to Columbians shared Your C project. of the Site features and refine key to: Hydro input will assist BC

SITE C Stage 1 Review of Project Feasibility www.bchydro.com/sitec