Fort St. John, B.C. - 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.