SOURCE: Peace Valley Landowner Association

September 29, 2017 19:18 ET

PVLA Site C Expert Report: The BCUC and the BC Cabinet must Ignore the $2.1 Billion Sunk Cost when Considering Site C's Future

FORT ST. JOHN, BC--(Marketwired - September 29, 2017) - Yesterday, the Peace Valley Landowner Association (PVLA) and the Peace Valley Environment Association (PVEA) filed one in a series of McCullough Research expert reports with the BCUC's Site C Inquiry.

In the report, energy expert Robert McCullough addresses one of the main arguments made for continuing Site C: the fact BC Hydro has already sunk about $2.1 billion into the project.

"This reasoning is known as the the sunk cost fallacy and fails to acknowledge that the dollars already spent cannot be recovered regardless of the outcome," said Robert McCullough. "Sunk costs are never considered in economic decisions, because these costs are fixed, regardless of what decision is made. In the case of Site C, British Columbia Hydro has spent approximately a fifth of the $9 billion dollars needed to build the hydroelectric project. The dollars are spent and cannot be recovered whether the dam is completed or not. Part or all of the remainder -- approximately $7 billion dollars -- can be saved if a less expensive alternative is selected."

"There is simply no good reason to throw good money after bad," said PVLA President Ken Boon.

To download the full McCullough Report, and to read all other expert McCullough reports submitted by PVLA and PVEA to the BCUC Site C Inquiry, please visit: http://www.peacevalleyland.com/sitecinquiry

The McCullough Research Report Submitted to the BCUC Site C Inquiry by PVLA and PVEA: Question 58 - The Sunk Cost Fallacy: http://docs.wixstatic.com/ugd/1694d3_e323986f7c4c49e59fe221c4d1e8cfaa.pdf

Contact Information

  • Media Contact:
    Ken Boon
    PVLA President
    250-262-9014