Communities in northeastern British Columbia are urging the province and B.C. Hydro to provide additional benefits from the Site C dam. This comes after the $16 billion megaproject was found to generate more electricity than initially forecasted. The newly operational dam can produce up to 1,230 megawatts at peak capacity, surpassing the original approval of 1,100 megawatts in 2014 by about 130 megawatts. This increase is sufficient to power approximately 52,000 additional homes, which is more than half of the anticipated energy needs for the proposed Cedar LNG project in Kitimat.

Hudson's Hope Mayor Travous Quibell emphasized the need for recognition of the increased revenue potential. "If the benefit of Site C, in terms of its ability to produce revenue, is increased, then the impact to us and the recognition of that impact should also be incorporated," he stated. The higher output was identified during testing of Site C's six large turbines, which were manufactured in Brazil and activated over the past year along the Peace River near Fort St. John. The final turbine began operation in August, ahead of schedule, and provincial regulators updated Site C's environmental certification this spring to reflect the enhanced capacity.

Site C began generating power in October 2024 and is now fully operational after facing years of delays, legal challenges, and budget overruns. It is the largest public infrastructure project in British Columbia's history, contributing about eight percent of the province's electricity supply. B.C. Hydro has indicated that the dam will help meet the rising demand driven by population growth, housing, and industrial projects.

Local leaders in the Peace region argue that the increased generating capacity should translate into greater benefits for their communities. In March, Quibell introduced a motion at a Peace River Regional District (PRRD) meeting, calling for the Environmental Assessment Office to mandate higher benefit payments as a condition for amending Site C's certification. "This is simply a nod to the fact that the environmental assessment process captures not just environmental impacts, but also socioeconomic ones," Quibell explained.

The PRRD had previously signed an agreement with B.C. Hydro in 2013, which guarantees $2.4 million annually until 2094, adjusted for inflation, once the dam became operational. This funding is distributed among the seven member municipalities and four unincorporated rural areas based on population and project impacts. In its first full year, the PRRD is expected to receive around $500,000, with Fort St. John and Dawson Creek set to receive approximately $830,000 and $312,000, respectively. PRRD board chair Leonard Hiebert noted, "It's a big benefit. It's guaranteed money coming in for the next 70 years. With that money coming in, we can look at not having to increase taxes for certain services."

Hiebert mentioned that the regional district plans to allocate its share of benefits toward priorities such as solid waste management, parks, and connectivity. However, the dam's construction has resulted in permanent losses, including the flooding of 55 square kilometers of farmland. Communities have also faced challenges, such as ongoing drinking water issues in Hudson's Hope related to the dam's construction. Hiebert remarked, "It is positive that they are producing more than projected, but there are all the impacts in construction that we've been through. That little extra money that we would get with that increased power… [would] come back into the region to help our residents as a whole."

Despite the calls for increased benefits, both B.C. Hydro and the Environmental Assessment Office have declined the PRRD's request. B.C. Hydro stated that it has already implemented over $100 million in mitigation measures and community benefits, including a $20 million agricultural trust fund and more than $1 million for non-profit organizations. In a letter to the regional district, the Environmental Assessment Office clarified that the legally binding conditions of the project do not require financial compensation to local governments, although B.C. Hydro must compensate for impacts on farmland, fisheries, wildlife, and wetlands. B.C. Hydro spokesperson Greg Alexis noted, "The funding formula as part of [the 2013 agreement] is not linked to anything to do with the capacity of Site C, so the terms of the agreement will not change."

Hiebert stated that the regional district will continue to advocate for increased compensation, particularly at the upcoming Union of B.C. Municipalities convention. He believes that provincial ministers should witness the scale of development and its impacts firsthand. "If we can get the ministers, even if they come as a whole contingent, just take a couple of days to see how vast it is and everything that's going on in our region, I think they would have a much better understanding as to why our asks are the way they are," he said.