Blc letter on savings from delay of site c final may 25 2015 with signature(2)

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BOTTERELL LAW CORPORATION BARRISTERS & SOLICITORS 2324 Brethour Avenue SIDNEY, BC V8L 2A3

250.655.7410 E-MAIL: RBOTTERELL@TELUS.NET

Delivered via E-mail: pvla@xplornet.com May 25th, 2015 Peace Valley Landowner Association SS#2, Site 12, Comp 19 Fort St. John, BC V1J 4M7 Attention:

Ken Boon, President

Dear Ken Boon,

Re: Savings to BC Ratepayers from Delay to Site C Dam Project Your Request The BC Hydro and Power Authority (BC Hydro) has filed an affidavit related to four cases currently before the Federal Court claiming that the Site C Clean Energy Dam Project (Site C project) would cost $175 million more if the start of project construction were delayed for one year.1 You have asked my opinion on whether this statement is true or whether in fact there will be savings to BC ratepayers from a delay to Site C. I understand that PVLA is interested in the answer to this question because the $175 million cost of delay is advanced as a reason for not referring key economic issues to the BC Utilities Commission for further review, as recommended by the Joint Review Panel. This letter: • • • •

provides background about the Site C project, integrated resource planning, present value financial analysis, and key findings of the federal/provincial Joint Review Panel, outlines the most appropriate approach for measuring the impact of delay on Site C project costs, presents and discusses BC Hydro’s estimates of the impact of delay on Site C project costs, and makes concluding observations.

1

Affidavit of Michael Savidant, Commercial Manager of the Site C Clean Energy Project, affirmed January 15, 2015, paragraph 14.

May 25, 2015


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