BC Hydro says it should have been more proactive as Site C costs overflowed

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VANCOUVER — 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.”

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BC 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.

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But that’s almost double the original 2014 budget of about $8.8 billion, which was increased twice, in 2018 and 2021.

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BC Hydro blames the huge overrun on the pandemic, as well as a failure to budget for low-probability risks that included substantial geotechnical problems.

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The utility says it should have “ramped up its internal project resources more proactively and sooner.”

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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.

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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.

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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.

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“Accordingly, the project contingency and project reserve were both insufficient to absorb the full costs when these high-consequence, low-probability risk events materialized.”

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It says that while the pandemic was “unforeseen,” the potential geotechnical challenges were understood.

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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.

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Further costs increases were related to contractor claims, redesigns, and other factors, it says.

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However, the report also says the challenges that sent the budget soaring were met with “ingenuity and determination.”

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“Overall, BC Hydro reflects on the Site C Project with pride and a commitment to learn and improve,” the summary says.

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This report by The Canadian Press was first published Nov. 3, 2025.

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