The on-again, off-again Site C hydro dam project in Northern BC should - pardon the pun - have the lights turned off permanently. Small hydro projects, built with private funds, have less impact on the environment and on taxpayers' wallets than large dams built with taxpayers' dollars. Building the Site C dam undermines the BC government's policy of developing a competitive energy sector to keep energy prices low, and sets the taxpayer up for another mega-cost overrun.

The Site C dam was the third dam planned, but never built, on the Peace River (the Bennett dam near Hudson's Hope was Site A and the Peace Canyon Dam, about 20 kilometers downstream, was Site B. Plans for Site C have been around since the 1970's, but faded because of the hue and cry by environmentalists about environmental damage caused by big dams.

In fact, the David Suzuki Foundation endorsed a report entitled "Twelve Reasons to Exclude Large Hydro from Renewables Initiatives," from the International Rivers Network in part because big reservoirs can emit large amounts of green house gasses (GHGs). A BC Hydro report states that some BC reservoirs might increase and others decrease GHGs. Because emissions are thought to be small, they are not included in BC Hydro's estimate of the net impact BC's reservoirs may have on the global climate.

The impact on taxpayers meanwhile is less controversial. In the past, large hydro was cheaper to build than small hydro. That has changed. BC Hydro estimates the 900 megawatt Site C dam will cost about $5 billion to build, or about $5 million dollars per megawatt. Small hydro now costs between $2-3 million per megawatt to build. The BC government opened up the electricity market to small hydro to create a competitive energy sector, shift the financial risk away from taxpayers and keep electricity prices low. Government funded mega-dams undermine these goals. The time for large hydro has passed.

Site C also creates the potential for multi-million dollar cost overruns. As BC taxpayers know all too well, government construction of mega-projects has resulted in huge cost overruns. The Fast Ferries ended up $200 million over budget, Olympic venues are so far $110 million over budget, and the Convention Centre Expansion project is so far $400 million dollars over budget. As no one in government is accountable for cost overruns, the history of exaggerating benefits and underestimating costs will likely continue with Site C. It's time to give taxpayers a break and go back to the plan of a competitive energy system using privately financed small hydro.

BC now has 35 operating run-of-river hydro projects supplying electricity to BC Hydro, and the price of energy has remained competitive. The construction of another mega-dam might sound good, but it won't solve GHG concerns, will be more expensive, and reduce the competitiveness of the sector. Taxpayers shouldn't be on the hook for more government funded mega-projects.