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Hydro-electric power planning in the Yukon : a case study of the Aishihik Project Nicholls, William Graham 1979

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9 1 HYDRO-ELECTRIC A  CASE  STUDY  POWER OF  PLANNING  THE  IN  AISHIHIK  THE  YUKON:  PROJECT  by WILLIAM B . A .  A  GRAHAM  U n i v e r s i t y  THESIS THE  of  SUBMITTED  NICHOLLS B r i t i s h  IN  REQUIREMENTS MASTER  i n  the  Community  We a c c e p t s t a n d a r d :  t h i s  W i l l i a m  t h e s i s  Graham  FULFILLMENT  FOR  DEGREE  THE  OF  of  R e g i o n a l  as  OF  ARTS  School  May,  (c)  PARTIAL  OF  and  1976  Columbia,  P l a n n i n g  conforming  1979  N i c h o l l s ,  1979  to  the  r e q u i r e d  In  presenting  this  an a d v a n c e d  degree  the  shall  I  Library  further  for  agree  thesis at  it  freely  of  extensive  s c h o l a r l y p u r p o s e s may be g r a n t e d  this  written  thesis for  by t h e  i s understood  f i n a n c i a l gain shall  the  Community  The U n i v e r s i t y o f B r i t i s h 2075 Wesbrook P l a c e V a n c o u v e r , Canada V6T 1W5  copying of  May  8,  1979  I agree  this  copying or  that  thesis or  publication  be a l l o w e d w i t h o u t  Planning  for  study.  Head o f my D e p a r t m e n t  that  not  and. R e g i o n a l Columbia  requirements  r e f e r e n c e and  permission.  Department nf  Date  It  of  B r i t i s h Columbia,  available for  permission for  by h i s r e p r e s e n t a t i v e s . of  fulfilment  the U n i v e r s i t y  make  that  in partial  my  -  i i  -  ABSTRACT The  h i s t o r y  when  the  o f  N o r t h e r n  i n v e s t i g a t e d f o r  the  the  the  and  s i t e  N o r t h e r n  be  process o f  the  Yukon  the  i m p l e m e n t i o n  the  p r o j e c t  Power  o f  the  p r o j e c t  under an  t h i s  Water  o f  began  A c t  t h i s  about  -  p r o c e s s , year  i t I n d i a n  l i c e n c i n g  o p e r a b l e .  The  i n v o l v e d  the  a u t h o r i t y ,  consequence the  l a t e r  o f  t h a t  l i c e n c i n g a  f i r s t  l e g i s l a t i o n  became  As  1971,  s e l e c t e d  M i n i s t e r  pending  new  new  i n  (NCPC)  r e q u i r e d  Board.  one  and  l e g i s l a t i o n  e n t i r e l y  T e r r i t o r y  The  u n t i l  Waters  begins  Commission  Development  d e l a y e d  I n l a n d  p a r t i c i p a t i o n  p r o j e c t  development.  N o r t h e r n  p r o j e c t  l i c e n c i n g  A i s h i h i k Canada  h y d r o e l e c t r i c  A f f a i r s o f  the  o f  c o n s t r u c t i o n  than  NCPC  o f  o r i g i n a l l y  i n t e n d e d .  When i t  c o n s t r u c t i o n  was  e s t i m a t e d  months and  to  was  c o s t  complete.  The  not  p r i m a r y  shows  how  the  to  I n f o r m a t i o n of  o f  completed  f o r  presented  i n  w r i t t e n  problems  t h a t  and  i m p l e m e n t i n g  $17  the  the  i n  take  f i n a l l y  c o s t  study The  encountered  A p r i l twenty $39  m i l l i o n  almost  documentation  i n  1973,  months.  c o n s i s t s  p e r c e i v e d ,  p r o j e c t .  b e g i n and  t w e n t y - s i x  a c t o r s  were  d i d  m i l l i o n  p r o j e c t  m a t e r i a l s .  d i f f e r e n t  the  p r o j e c t  and  d e a l t  p l a n n i n g ,  e n t i r e l y  p r o v i d e d w i t h l i c e n c i n g ,  -  iii  -  Objectives The  objectives  o f t h i s study a r e :  1.  to describe accurately  the history as p o s s i b l e ,  of the A i s h i h i k project focusing  on t h e d e c i s i o n  p r o c e s s e s and t h e most i m p o r t a n t p r o b l e m s t h a t during 2.  as  the course of the h i s t o r y ;  arose  and  t o i d e n t i f y t h e main f a c t o r s  t h a t were  f o r t h e development o f these  problems.  responsible  Problems The  most i m p o r t a n t  problems t h a t  are dealt with  study r e l a t e t o the s e l e c t i o n of the p r o j e c t , water  l i c e n c i n g process,  implementation  1.  Selection  and c o s t  best  2.  planning,  overruns.  i n v e s t i g a t i o n o f a l t e r n a t i v e s was  Thus a q u e s t i o n h a s p e r s i s t e d a l t e r n a t i v e was c h o s e n  The Water L i c e n c i n g  S i n c e t h i s was t h e f i r s t Northern  to the  of the Project  Only a p e r f u n c t o r y made.  and t o t h e p r o j e c t  Inland  as t o whether t h e  f o r development.  Process project  Waters A c t ,  made s u b j e c t  to the  none o f t h e a c t o r s h a d  previous experience with the l i c e n c i n g process. result,  i n this  differences  i n p e r c e p t i o n s were h e l d  As a  by NCPC  and  t h e Water Board about t h e r o l e o f t h e Water  Board,  and  t h i s caused  out the  friction  and d e l a y s  i n carrying  l i c e n c i n g  P r o j e c t  a.  NCPC  P l a n n i n g ,  l a c k e d was  not  s u b s t a n t i a l b.  NCPC to  w e l l  l o n g e r  s t a f f e d  the  r e s p o n s i b l e  c l e a r .  Reports  the  p r o j e c t  showing  the  and  Overruns  hydro  f a c i l i t i e s ,  implement  a  p r o j e c t .  c o s t  as  t h a t  on  f o r the  management,  independent  C o s t  and  time  i n d i c a t e d  by  c o n s t r u c t i o n  r e q u i r e d the  took  c o s t  30  per  cent  e s t i m a t e d .  F a c t o r s  NCPC  p l a n  power  p r o j e c t , f a c t  and  c o n s t r u c t i n g to  misjudged  the  than  the  i n  h y d r o e l e c t r i c  c o n s t r u c t and  Implementation  e x p e r i e n c e  e v i d e n t l y  o v e r r u n  c.  -  procedure.  3.  and  i v  and  the  c o s t  c o s t  the  o v e r r u n  w r i t t e n  c o n s u l t i n g  f i r m  w h i c h  c o n s t r u c t i o n ,  c o n s u l t a n t ,  but  a  by  unforeseen  by  o t h e r  i n f l a t i o n  f a c t o r s  has  e n t i r e l y  were  i t s  p r o p o r t i o n  not  o v e r r u n  managed  what  are  o f  never  q u a n t i t a t i v e  the  and  and  c o s t  what been  by  d e s i g n e d an  a n a l y s i s  o v e r r u n  was  caused  p r o p o r t i o n  was  caused  c a r r i e d  out.  C o n c l u s i o n s The  d i f f i c u l t i e s  are  u n l i k e l y  w i t h  i t s  ensure of  to  be  repeated  r e q u i r e m e n t s .  adequate  c o s t  encountered  processes  are f o r  the  l i c e n c i n g  because  a l l  a c t o r s  and  n e c e s s a r y s u p p l y i n g  are  C o u n t e r v a i l i n g i n f l u e n c e s  c o n s i d e r a t i o n  e s t i m a t e s ,  programs  d u r i n g  o f  e f f i c i e n t to  g i v e  a l t e r n a t i v e s ,  e l e c t r i c  p u b l i c  power  i n  now t h a t  o f  would  c o n s t r u c t i o n  c o n f i d e n c e the  f a m i l i a r  r e l i a b i l i t y  i m p l e m e n t a t i o n  the  process  Yukon.  i n  TABLE  V  -  OF  CONTENTS Page  ABSTRACT TABLE PART  i i  OF  CONTENTS  v  ONE  CHAPTER  ONE  INTRODUCTION  1 i  I.  O b j e c t i v e s  1  I I .  S y n o p s i s  o f  I I I .  P h y s i c a l  D e s c r i p t i o n  IV.  H i s t o r y  V.  The  Whitehorse  A.  The  B.  M i n i n g  V I .  A c t o r s  o f  H i s t o r y  NCPC  B e f o r e  f o r  A i s h i h i k  Demand the  D e c i s i o n  B.  The  Water  The  Department  P r o c e s s  Power  Board  and  13 15  N o r t h e r n Canada Commission  A f f a i r s  11 12  Power  A.  - C  5  System  Demand  i n  1  16 16  17 o f  I n d i a n  19  N o r t h e r n  Development VII. PART  Overview  20  TWO  CHAPTER  TWO  SELECTION  AND APPLICATION  JUNE  to  I. I I .  1971  -  I n t r o d u c t i o n S e l e c t i o n  P r e v i o u s  B.  I n i t i a l  D.  23  o f  A.  C.  23  MAY. 1 9 7 2  the  S i t e  Knowledge Surveys  • S e l e c t i o n Study  o f  23 23 24 25  the  S i t e  27  - vi Page E.  Application  f o r Water 27  Licence III.  The Water L i c e n c e A.  Introduction  B.  Previous  C. IV.  CHAPTER THREE  CHAPTER FOUR  29 29  Water  Licence  Process  29  D e c i s i o n t o Use t h e N.I.W.A.  30  Generation  of Information  A.  Environmental  B.  The E n v i r o n m e n t a l Study  V.  Process  Study Delays  32 32  Impact 34  ]  C.  Engineering  Design  36  D.  Engineering  Study  39 40  Summary  THE FIRST HEARING - MAY, I.  Introduction  II.  Preparation  1972  47 47  f o r the Hearing  47  A.  Legal Constraints  47  B.  Notice  50  C.  Availability  o f the Hearing o f Reports  52  III.  The Water B o a r d ' s Mandate  52  IV.  The H e a r i n g  55 60  V. Summary OUTCOME OF THE FIRST HEARING AND PREPARATIONS FOR RE-APPLICATION MAY 1 9 7 2 TO JANUARY 1 9 7 3 I. Recommendation o f t h e Water B o a r d  63  II.  66  NCPC's R e a c t i o n  63  -  CHAPTER FIVE  CHAPTER SIX  V l l -  Page  III.  Proposed C o n s t r u c t i o n Schedule  68  IV.  Study  70  V.  Environmental  VI.  Changes i n the Water L i c e n c e Application  77  VII.  The Pumping Scheme  80  VIII.  Summary  82  Delays Studies  SECOND HEARING AND OUTCOME, DECISION TO PROCEED - JANUARY TO APRIL, 1973  75  88  I.  Introduction  88  II.  Date of Hearing  88  III.  Terms of A p p l i c a t i o n  89  IV.  Second  89  V.  The Water Board's D e c i s i o n  91  VI.  NCPC's Reaction  96  VII.  D e c i s i o n t o Proceed  99  VIII.  Summary  Hearing  102  CONSTRUCTION OF THE PROJECT AND THE COST OVERRUN  104  I.  Compliance with Conditions  104  II.  The Cost Overrun  109  A.  Introduction  109  B.  Formulation Estimates  C.  Economic F a c t o r s  111  D.  The Tunnel C o n t r a c t  112  E.  The C o n s t r u c t i o n Schedule 113  Licence  o f Cost  110  -  Vlll  Page  I I I . CHAPTER  SEVEN  FINAL -  F.  D e t a i l e d  G.  I n f l u e n c e o f Water L i c e n c e D e l a y s  H.  The Water R e a c t i o n  B o a r d ' s  I.  The  Report  Summary STUDIES  AUGUST,  P r e p a r a t i o n s  Dalby and  115 117  12 0  121  C o n c l u s i o n s  AND THE THIRD  123  HEARING  12 9  1975  I.  I n t r o d u c t i o n  129  I I .  The  130  I I I .  I n f o r m a t i o n H e a r i n g A.  T h i r d  H e a r i n g P r o v i d e d  F o r  The  Study  133  The  Systems  133  1.  E v a l u a t i o n  2.  Assumptions  135  3.  Study  137  4.  P r e s e n t a t i o n  o f  B e n e f i t s  F i n d i n g s o f  Study  134  138  F i n d i n g s B.  IV. PART  THREE, .  CHAPTER  EIGHT  ;  Assessment Costs  o f  E n v i r o n m e n t a l  Summary  139  144  . , .  CONCLUSIONS  AND RECOMMENDATIONS  I.  I n t r o d u c t i o n  IT.  Review  I I I .  F a c t o r s Process A.  o f  the  14 9 D e c i s i o n  A f f e c t i n g the and Outcome  S t r u c t u r e System  149  o f  the  Process  149  D e c i s i o n  153  D e c i s i o n  153  - ix  IV.  V. BIBLIOGRAPHY  1.  The A l l o c a t i o n o f Responsibility  2.  Inter-Organizational Relationships  B.  Differences i n Objectives and Perceptions  C.  Experience with the Decision Process  D.  Lack o f Resources  P r o b l e m s A f f e c t i n g t h e Outcome A.  Cost  Estimates  B.  Lack o f D e t a i l e d Preparations  C.  The C r a s h Schedule  D.  Investigation of Alternatives  Construction  Recommendations  -  x  -  L I S T OF FIGURES Page FIGURE 1.  AISHIHIK POWER DEVELOPMENT GENERAL LAYOUT  FIGURE 2.  ORIENTATION  FIGURE 3.  YUKON ENERGY DEMAND  14  FIGURE 4.  NOTICE OF MAY 1972 HEARING IN YUKON NEWS, APRIL 28, 1972.  51  THE PUMPING SCHEME  81  FIGURE 5.  MAP OF THE AISHIHIK AREA  10  - xi-  ACKNOWLEDGEMENT  I  would  for  h i s  which  l i k e  to  thank.  P r o f e s s o r  and  assistance.,  guidance  t h i s  t h e s i s  would  not  have  I r v i n g  F o x  w i t h o u t been  p o s s i b l e . .  - 1 PART ONE CHAPTER ONE INTRODUCTION This It  study describes  the h i s t o r y of the A i s h i h i k  d e a l s w i t h how t h e p r o j e c t  by t h e N o r t h e r n Canada procedure that  The  first  chapter w i l l  project's  history,  I.  the various  to describe accurately  a water  licence.  provide a synopsis of the of the project  which i t operates, actors  of this  itself  and b r i e f l y  i n the decision  process.  study a r e :  the h i s t o r y of the A i s h i h i k p r o j e c t as p o s s i b l e ,  p r o c e s s e s and t h e most during 2.  and w i t h t h e  OBJECTIVES  The o b j e c t i v e s 1.  to obtain  a description  and t h e s y s t e m w i t h i n describe  was p l a n n e d and i m p l e m e n t e d  Power C o m m i s s i o n ,  was f o l l o w e d  project.  focusing  on t h e d e c i s i o n  important problems that  the course of the h i s t o r y ;  to i d e n t i f y  t h e main  factors  as  that  arose  and were  responsible  f o r t h e development o f these problems.  II.  SYNOPSIS OF HISTORY  The h i s t o r y  of the A i s h i h i k project  During t h i s  period  and c o n s t r u c t e d (NCPC).  the project  spans about f o u r  was s e l e c t e d ,  by t h e N o r t h e r n Canada  The Yukon  T e r r i t o r y Water  Power  Board a l s o  years.  designed Commission played  - 2 -  a very the  active role  i n t h e p r o j e c t ' s h i s t o r y by  determining  c o n d i t i o n s o f t h e w a t e r l i c e n c e on t h e b a s i s o f  information  provided  t o i t by t h e Power  Commission.  Many o f t h e m a i n e v e n t s i n t h e h i s t o r y a r e t h e r e s u l t of  i n t e r a c t i o n s between  NCPC and t h e Water B o a r d .  The A i s h i h i k p r o j e c t i s o f r e l a t i v e l y a generating  c a p a c i t y o f 3 3 MW.  about n i n e t y m i l e s portion  o f the flow  very  little  size,  having  The p r o j e c t i s l o c a t e d  w e s t o f W h i t e h o r s e and u t i l i z e s of the East A i s h i h i k River.  s m a l l dams were c o n s t r u c t e d and  small  to regulate  a  Two  the water  flows,  f l o o d i n g has r e s u l t e d from t h e development.  The p r o j e c t was o r i g i n a l l y  conceived  and s e l e c t e d  during  the  summer o f 1971, and on A u g u s t 31, 1971, NCPC a p p l i e d  for  a w a t e r l i c e n c e u n d e r t h e D o m i n i o n Water  At  this  time the e n g i n e e r i n g  not  been e s t a b l i s h e d .  and  N o r t h e r n Development  proclamation  design  Power A c t .  o f t h e p r o j e c t had  The D e p a r t m e n t o f I n d i a n felt,  however, t h a t  Affairs  since the  o f t h e N o r t h e r n I n l a n d W a t e r s A c t (N.I.W.A.)  was i m m i n e n t , i t w o u l d be p r u d e n t t o e n s u r e t h a t NCPC not  a p p e a r t o have r e c e i v e d any f a v o u r a b l e  avoiding decided until  t h e new l e g i s l a t i o n .  The D e p a r t m e n t  that the a p p l i c a t i o n should  t h e N.I.W.A. came i n t o  t r e a t m e n t by  effect.  be h e l d  therefore  i n abeyance  - 3-  Following  some d e l a y  proclamation  i n the anticipated  date o f  o f t h e N.I.W.A., t h e f i r s t  hearing  water l i c e n c e  took  p l a c e i n May, 1972.  t h a t NCPC w o u l d r e c e i v e a w a t e r and  licence  t h a t c o n s t r u c t i o n would b e g i n  However, i t was d e t e r m i n e d  I t was after  t h e next  immediately  grant a water  licence,  month.  prior  to the  After  the hearing,  insufficient and  The h e a r i n g  f o r public information  t h e Water B o a r d  information t o support  p r o v i d e d NCPC w i t h  jurisdiction  because t h e R e g u l a t i o n s f o r  t h e N.I.W.A. h a d n o t y e t been p r o m u l g a t e d . was t h e r e f o r e h e l d o n l y  expected  the hearing  h e a r i n g t h a t t h e W a t e r B o a r d d i d n o t have l e g a l to  f o ra  a list  found  t h a t t h e r e was  the application,  of information  t h a t w o u l d have t o be f u l f i l l e d  purposes.  before  a water  requirements licence  c o u l d be i s s u e d .  Although 1972,  the Regulations  were p r o m u l g a t e d  NCPC was n o t p r e p a r e d  l i c e n c e by t h a t t i m e . January  to reapply  i n September,  f o r a water  The s e c o n d h e a r i n g t o o k  17, 1973. The s e c o n d a p p l i c a t i o n  certain modifications, including  a request  p l a c e on  contained f o r a larger  storage  r a n g e o n A i s h i h i k L a k e and i n c r e a s e d f l o w s t o  be  f o r power g e n e r a t i o n .  used  economic v i a b i l i t y requests  being  NCPC i n d i c a t e d  that the  o f t h e p r o j e c t d e p e n d e d on t h e s e  granted.  - 4 The  Water  Board  d e c i d e d  to  i s s u e  p e r m i t  c o n s t r u c t i o n  o f  the  NCPC's  r e q u e s t s  f o r  an  i n c r e a s e d  amount  o f  water  an  i n c r e a s e d  the  Board  determined  the  terms  o f  The  B o a r d ' s  the  1,  to  do,  NCPC  d e c i d e d  of  the  p r o j e c t .  of  1975.  A t  e s t i m a t e d  $39  m i l l i o n ,  o r d e r  r e p o r t R.  N .  of  the  to  was  The  t h i r d  1975  to  prepared at  the o f  the by  o f  the  r e p o r t , 1  b e h i n d  independent  request  NCPC s  the  i n  the  summer  p r o j e c t  f i n a l  c o s t  o v e r r u n ,  c o n s u l t a n t ,  o f  was  l i n e .  the  was  h a n d l i n g  what  c o n s t r u c t i o n  M i n i s t e r .  i t  M i n i s t e r  about  the  t r a n s m i s s i o n  reasons an  t h i s  i n t o  m i l l i o n ;  support  p r o v i d e d .  the  b e g i n  c o n s t r u c t i o n  the  to  completed  to  As  d e c i d e d the  a  M r . a  r e s u l t  t h a t  p r o j e c t  a would  n e c e s s a r y .  h e a r i n g  determine  i n c r e a s e d be  $17  e x c l u d i n g  i n q u i r y  be  c o s t  o f  was  because  been  i n d e c i s i o n to  grant and  i n f o r m a t i o n not  to  not  range  s u b m i t t e d  1973  p r o j e c t  d i d  d i v e r t e d ,  s t i l l  some  A p r i l  s t a r t  to  f i n d i n g s  not  i n  be  had  was  A f t e r  The  e x p l a i n  D a l b y ,  p u b l i c  1973.  the  was  to  but  l i c e n c e  storage  adequate  recommendation  F e b r u a r y  water  p r o j e c t ,  a p p l i c a t i o n  on  In  t h a t  a  was  whether  d i v e r s i o n  a l l o w e d .  NCPC  h e l d  o f  by the  water  p r o v i d e d  the  Water  i n c r e a s e d to  the  the Water  Board  i n  storage  power Board  house w i t h  A u g u s t range s h o u l d what  and  - 5 -  was c o n s i d e r e d requests, not  The  i n f o r m a t i o n t o support  and t h e y were g r a n t e d .  y e t taken  III.  sufficient  these,  As o f 1978, NCPC h a d  advantage o f t h e i n c r e a s e d s t o r a g e  range.  PHYSICAL DESCRIPTION A i s h i h i k p r o j e c t i s l o c a t e d i n s o u t h w e s t e r n Yukon i n  the A i s h i h i k B a s i n , of Whitehorse.  approximately  The A i s h i h i k B a s i n  s q u a r e m i l e s , and i t s p r i n c i p a l of a s e r i e s o f elongated channels  Main l a k e s  Canyon L a k e s . 3 5 miles  an a r e a  hydrographic  o f 1630.  feature consists  l a k e s w h i c h a r e c o n n e c t e d by s h o r t  o f t h e Dezadeash  i n t h e b a s i n a r e Sekulmun, A i s h i h i k and  l o n g a n d , on t h e a v e r a g e ,  flows  River.  A i s h i h i k Lake, t h e l a r g e s t  Sekulmun f l o w s then  covers  northwest  and e v e n t u a l l y d r a i n e d by t h e A i s h i h i k R i v e r , an  18-mile long t r i b u t a r y  The  80 a i r m i l e s  into  northeastwardly Canyon  less  i n the s e r i e s , i s  than  2 miles  i n t o A i s h i h i k Lake,  wide.  which  Lake.  The  East A i s h i h i k R i v e r , which flows  the  site  the  630 f o o t d i f f e r e n c e i n e l e v a t i o n between Canyon  and  the confluence  The  scheme i s t h e r e f o r e one t h a t i s a b l e t o make u s e o f  an  o f t h e hydro development.  The p r o j e c t  a small rapids located just  an i m p o r t a n t  utilizes Lake  and West A i s h i h i k R i v e r s ,  e x c e p t i o n a l l y h i g h head and l a r g e w a t e r  Otter F a l l s , is  of the East  o u t o f Canyon L a k e , i s  storage.  b e l o w Canyon  Lake,  f e a t u r e o f the p r o j e c t s i n c e i t used t o  -  be  p i c t u r e d on  Otter F a l l s sight, all  and  6  -  the back o f the  has  five  been c o n s i d e r e d  because f i s h  an  dollar  important  populations  of the water a v a i l a b l e i s used  live  recognized  of the  n a t u r a l f l o w w o u l d have t o be  a l l of the water  From O t t e r F a l l s , and 55  empties  into  o u t s e t of the  should  the  be  river  f e e t b e l o w Canyon L a k e .  to the  bedrock dropping long. over  I t then  For  the  a series  another  next  two  and  p r o j e c t t h a t some  feet one  of rapids u n t i l  and  a series  1,000  river.  of  drops another  rapids pond,  12 0  feet  through  i n a c h u t e 1200  half miles  that  f o o t wide  which i s a cut  120  not  production.  maintained  over  a small  t o p o f Rainbow F a l l s ,  River,  d i v e r t e d from the  flows  Otter Pool/  Because  tourist  i n the  f o r power  I t was  not  a t the  bill.  the  i t meets w i t h  feet  river  the  meanders  confluence  o f t h e West A i s h i h i k R i v e r .  The  h y d r o scheme i s one  from both It  an  that i s p a r t i c u l a r l y  engineering  and  a e s t h e t i c p o i n t of  i n v o l v e s no m a j o r f l o o d i n g , t h e  are very  s m a l l , and  Unfortunately, flows  and  discharge  the  the  powerhouse i s l o c a t e d u n d e r g r o u n d . of very  i s located i n a semi-arid area. of the East A i s h i h i k River  annual p r e c i p i t a t i o n  view.  control structures  p r o j e c t makes use  b e e n c a l c u l a t e d t o be  appealing  only over  370  The  stream  mean a v e r a g e  at Otter F a l l s  c.f.s.,  the b a s i n  low  and  i s only  the 10.1  has  average inches.  -  7 -  Two s m a l l c o n t r o l dams were c o n s t r u c t e d o f A i s h i h i k and Canyon L a k e s . mainly  Storage  a t the o u t l e t s i s developed  on A i s h i h i k L a k e , and Canyon L a k e i s u s e d f o r  pondage t o accommodate d a y - t o - d a y d i v e r s i o n  requirements.  Water i s d i v e r t e d f r o m Canyon Lake t h r o u g h a s m a l l structure contour  into  a 3.5 m i l e  o f t h e west bank o f t h e r i v e r .  almost c o n t i n u o u s l y visible  evidence  right-of-way  At  long canal which  i n permafrost  intake  follows the  The c a n a l  i s built  and c r e a t e s t h e most  o f t h e p r o j e c t , as i t i s l o c a t e d i n a c l e a r e d  averaging  3 00  feet  i n width.  t h e end o f t h e c a n a l , a v e r t i c a l  12-foot  diameter  intake  s h a f t was c o n s t r u c t e d  t o a d e p t h o f 600 f e e t b e l o w t h e  surface.  long pressure  A 3000-foot  from t h e r e  turbines driving  The powerhouse c o n t a i n s  two 14.4 MW  overload  maximum g e n e r a t i n g slightly  over  30  rating  by  w h i c h have a  o f a b o u t 10 p e r c e n t .  The  tunnel  leaves  t h e powerhouse  s o u t h w a r d t o an o p e n i n g h a l f a  from t h e c o n f l u e n c e  Rivers.  generators,  two F r a n c i s - t y p e  MW.  e x t e n d s 4750 f e e t  mile  water  capacity of the plant i s therefore  A 14 by 14 f o o t t a i l r a c e and  carries  t o t h e p o w e r h o u s e , w h i c h i s l o c a t e d 350 f e e t  below t h e s u r f a c e .  continuous  tunnel  of the East  and West A i s h i h i k  The powerhouse i s a l s o c o n n e c t e d t o t h e s u r f a c e  an a c c e s s  tunnelling  shaft.  operations  Nearly  9000 f e e t o f u n d e r g r o u n d  were n e c e s s a r y  to construct the p r o j e c t .  -  Since  t h e p r o j e c t was  above the h i s t o r i c has  taken  place.  enough t o p r o v i d e being  has  -  i n o p e r a t i o n , no f l o o d i n g  high e l e v a t i o n of A i s h i h i k p l a n t appears not  t o be  any  measure o f e x c e s s  capacity  and  the  continued  been n e c e s s a r y  of the Whitehorse  Lake  The  commissioned,  generators  put  8  system.  use  of  large after  diesel  t o meet t h e power demands  -  IV. In was  HISTORY OF 1948  the  and  NCPC BEFORE AISHIHIK  Parliament.  f o r the  operation  Territories. the  In  1949  Act  name o f  to the  constructed  the  the  area  and the  project,  following  located  construction  and  the  to  of  Canada  Aishihik,  for completing northwest  the of  constructed  Mayo R i v e r  mines i n the The  i n 1957  added, i n c r e a s i n g  the  to  Resources.  t o w n s i t e o f Mayo.  f o l l o w i n g y e a r , and  "Northern  time being  the  serve  include  projects:  90 m i l e s  at that  North-West  amended i n 1956  development of  w h i c h was  development Keno  p r o j e c t was  a second  i t s generating  Hill completed  generating capacity  to  MW. 1956  NCPC b e g a i n c o n s t r u c t i o n  W h i t e h o r s e R a p i d s on  the  upstream from W h i t e h o r s e . in  again  was  construction  i n the  Commission t o the  Yukon i n 1951  u n i t was  In  was  the  amended t o  D e p a r t m e n t o f M i n e s and  NCPC began,  5.1  and  was  194 8 i t assumed r e s p o n s i b i l i t y  Yellowknife,  the  the  the  planning  Snare R i v e r  in  facilitating power p l a n t s  Prior  by  Power C o m m i s s i o n  electric  Commission".  In  Power Commission- A c t  of  Power  NCPC had  The  purpose of  Yukon T e r r i t o r y ,  change t h e  -  North-West T e r r i t o r i e s  p a s s e d by  created  11  1958  with  a generating  of  a hydro p l a n t  Yukon R i v e r , The  two  p l a n t was  capacity  of  11.4  at  miles commissioned MW.  - 12 Development  o f a second hydro e l e c t r i c power s i t e  on the Snare R i v e r began  i n 1959 and was  completed  i n 19 60. In 1964 NCPC began c o n s t r u c t i o n o f the T a l t s o n p r o j e c t near F o r t Smith i n the NWT, was  River  and the p r o j e c t  completed i n 1965.  NCPC added an a d d i t i o n a l 9 MW  generating  u n i t at  Whitehorse Rapids i n 1969.  In a d d i t i o n t o the planning  and development  p r o j e c t s , NCPC's major o p e r a t i o n s i n s t a l l a t i o n , maintenance of d i e s e l generating  52 d i e s e l p l a n t s , and was  of a l a r g e number  By 1976 NCPC was  supplying  i n the Yukon and the Northwest  V.  c o n s i s t e d of the  and o p e r a t i o n  plants.  of these hydro  power to 64  operating communities  Territories.  THE WHITEHORSE SYSTEM  When the A i s h i h i k p r o j e c t was t h i r d e l e c t r i c a l generation system.  The other  completed i t added the  f a c i l i t y to the Whitehorse  two f a c i l i t i e s c o n s i s t e d of the  Whitehorse Rapids hydro p l a n t , which produces about 20 and a 20 MW  MW,  d i e s e l p l a n t l o c a t e d next to Whitehorse Rapids.  The d i e s e l g e n e r a t o r s were seen at the time o f t h e i r installation  as an ad hoc means o f s u p p l y i n g  During the l a t e 1960's i t was  electricity.  a n t i c i p a t e d that a l a r g e -  -  13 -  s c a l e hydro p l a n t would p r o b a b l y Yukon i n o r d e r  smaller  but e l e c t r i c a l  increments.  These mines d i d n o t  demands c o n t i n u e d  o f new g r o w t h , NCPC c h o s e t o meet  the  i n c r e a s i n g demands by u s i n g d i e s e l  the  s h o r t t e r m t h i s was c o n s i d e r e d  as  and enabled  generation.^  t o be a l e s s  In  costly  NCPC t o k e e p i t s o p t i o n s  t o the choice o f the next  A.  t o grow i n  Because o f t h e u n c e r t a i n t y o f t h e  m a g n i t u d e and l o c a t i o n  alternative,  i nthe  t o meet t h e demands o f l a r g e power-  consuming mining developments. materialize,  be c o n s t r u c t e d  open  plant.  The Demand f o r Power  From 1960 t o 1966 t h e r e was a l m o s t no g r o w t h i n e n e r g y needs i n t h e Whitehorse  s y s t e m , arid a l l o f t h e s e  n e e d s were met by  the Whitehorse Rapids p l a n t .  I n 1967 and 1968 t h e W h i t e h o r s e C o p p e r M i n e began, p r o d u c t i o n , f o l l o w e d by C y p r u s A n v i l M i n e s a t F a r o of  i n 1969.  t h e A n v i l M i n e r e q u i r e d t h a t NCPC s u p p l y  9.3 MW  block  8 MW  with  new demands, p l u s g r o w i n g  o f W h i t e h o r s e , NCPC i n s t a l l e d  generating  coupled  an a d d i t i o n a l  o f power.  In response t o these from the C i t y  The s t a r t  unit  9 MW  demands  an a d d i t i o n a l  a t W h i t e h o r s e R a p i d s i n 1969,  of diesel  generating  capacity.  - 14 -  A n v i l Mine  Expansion  A n v i l Mine  Starts  • W h i t e h o r s e C o p p e r Mine Starts  log rscaleo o  o o  •n  o o  IT)  CN  T H O U S A N D FIGURE 3.  o in K I L O W A T T  H O U R S  YUKON ENERGY DEMAND ( S o u r c e : S t a t i s t i c s Canada, C a t . 57-001)  - 15 By  1971  of  d i e s e l peaking capacity  load  B.  i t was  -  necessary to i n s t a l l  an a d d i t i o n a l 10  i n o r d e r t o meet a  MW  continuing  growth.  M i n i n g Demand  The demand f o r power i n t h e W h i t e h o r s e heavily  influenced  by m i n i n g .  A n v i l M i n e p u r c h a s e d 122 close  system  I n 1977-78 t h e  million kilowatt  i s very Cyprus  hours, which i s  t o h a l f o f t h e 27 0 m i l l i o n k i l o w a t t  hours  produced  2 by t h e s y s t e m d u r i n g  t h e same t i m e p e r i o d .  Manager o f NCPC a l s o  stated  i n 1972  The  General  that:  ... d i r e c t and i n d i r e c t c o n s u m p t i o n by t h e mines c o n n e c t e d t o t h e system c o n s t i t u t e s r o u g h l y 70% o f t h e t o t a l e n e r g y generation from t h i s system. 3  The 1973  start and  o f t h e A n v i l M i n e i n 1969, 1974  has had  a fundamental  requirements of the Whitehorse question  that  Aishihik  p r o j e c t would  that  i t was  and  i t s expansion i n  e f f e c t on t h e  system.  There  is  generation little  i f t h e A n v i l Mine d i d n o t e x i s t , t h e n t h e n o t have b e e n  constructed.  needed  at the time  VI.  ACTORS IN  THE  16  -  DECISION PROCESS  A.  N o r t h e r n Canada Power  The  N o r t h e r n Canada Power C o m m i s s i o n  Crown c o r p o r a t i o n of  i t s own  Commission (NCPC) i s a  which o p e r a t e s under the  legislation,  the  authority  N o r t h e r n Canada Power  Commission A c t .  I t i s concerned with  construction  management o f p u b l i c u t i l i t i e s ,  and  federal  the  planning, primarily  4  electrical,  The  on  Commission  north  of  60°  a commercial  i s the  and  Yukon and  basis.  p r i n c i p a l producer of  o p e r a t e s the  in  the  it  o p e r a t e s community h e a t i n g ,  in  several  electricity  main t r a n s m i s s i o n  North-West T e r r i t o r i e s .  In  w a t e r and  networks  addition,  sewerage  systems  5 locations.  NCPC's b a s i c  objective  N o r t h e r n Canada a t t h e required  t o be  Commission a r e of  Canada.  by  way  The  of  i s to provide u t i l i t y lowest p o s s i b l e  s e l f - s u s t a i n i n g , and  the  subject  of  to the  Funds f o r c a p i t a l interest-bearing  NCPC A c t  Commission.  does not  the  as  C o m m i s s i o n Members. of  loans  s p e c i f y any  Board of D i r e c t o r s ,  the  Development, the  the  cost.  the  from the  Auditor are  are  Minister  General  government.  p o l i c y of  reviewed  and  Indian  i s also  Affairs  responsible  to  the  decided  members o f w h i c h a r e  B e c a u s e NCPC r e p o r t s  Department o f  the  received  federal  operating  to  It is  accounts of  expenditures  Changes i n p o l i c i e s  by  Minister  audit  services  known  the  and for  Northern both  - l i -  the  policies  and o p e r a t i o n s o f t h e Power  When t h e A i s h i h i k  p r o j e c t was  t h e Deputy M i n i s t e r  Chairman  Program,  Mr.  The W a t e r  responsible  of Indian  also  Deputy M i n i s t e r  of  a n o t h e r Commission  Member.  Board  proclaimed  t h e Water  Affairs  R o b i n s o n , was  B o a r d was  established  7 o f t h e N o r t h e r n I n l a n d Waters  w h i c h was of  Basil  constructed,  f o r the Northern A f f a i r s  D i g b y Hunt, was  The Yukon T e r r i t o r y Water section  Mr.  o f NCPC; and t h e A s s i s t a n t  t h e Department  B.  p l a n n e d and  o f the Department  and N o r t h e r n D e v e l o p m e n t ,  Commission.  i n F e b r u a r y , 1972.  Board are s p e c i f i e d  Act  The o b j e c t s o f t h e b o a r d s a r e the c o n s e r v a t i o n , development of the water r e s o u r c e s of the and t h e N o r t h w e s t T e r r i t o r i e s t h a t w i l l p r o v i d e t h e optimum f o r a l l C a n a d i a n s and f o r t h e Yukon T e r r i t o r y and N o r t h w e s t particular. 6  (N.I,W.A.)  The  i n section  under  objectives 9 of the A c t :  to provide for and u t i l i z a t i o n Yukon T e r r i t o r y i n a manner benefit therefrom r e s i d e n t s of the Territories in  The membership o f t h e B o a r d i s d e t e r m i n e d by n o m i n a t i o n s from t h e Commissioner  i n C o u n c i l o f t h e Yukon  and b y e a c h o f t h e d e p a r t m e n t s o f t h e f e d e r a l that  a r e most d i r e c t l y  resources  i n the  Territory government  c o n c e r n e d w i t h management o f w a t e r  Territory.  -  18 -  N i n e i n d i v i d u a l s s i t on t h e B o a r d . t h e s e p e o p l e were a p p o i n t e d the  by t h e T e r r i t o r i a l  An O r d e r i n C o u n c i l  d a t e d May 1977  r e d u c e d t h e number o f r e p r e s e n t a t i v e s departments t o three, representatives  Section shall  as  o r storage  "no p e r s o n  o f waters w i t h i n  to a licence held  a water  any s u c h  by h i m o r e x c e p t  by r e g u l a t i o n s made p u r s u a n t  t o paragraph  The w a t e r management a r e a s a r e e s t a b l i s h e d i n  Regulations  authorizes be  t h e number o f l o c a l  o r otherwise use waters w i t h i n  except pursuant  authorized  federal  by t h r e e .  d i v e r t the flow  26(g)". the  and i n c r e a s e d  from  3 ( 2 ) o f t h e N.I.W.A. s t a t e s t h a t :  management a r e a area  1977, s i x o f  by t h e d e p a r t m e n t s o f  f e d e r a l g o v e r n m e n t and t h r e e  Commissioner.  Until  f o r t h e N.I.W.A., and p a r a g r a p h 2 6 ( g )  f o rregulations  t o be made p e r m i t t i n g  water t o  u s e d w i t h o u t a l i c e n c e , d e p e n d i n g on t h e q u a n t i t y o f  water, r a t e o f flow,  Section  o r type o f use i n v o l v e d .  15(2) a l s o s t a t e s t h a t  connection  with  a hearing  must be h e l d i n  each a p p l i c a t i o n f o r a l i c e n c e .  Once t h e A c t was i n f o r c e , t h e n , any c h a n g e i n t h e u s e of t h e water resources e x c e p t as a u t h o r i z e d  -  by r e g u l a t i o n s made t o p a r a g r a p h 2 6 ( g )  - by NCPC o r any o t h e r require  i n a w a t e r management a r e a  p r i v a t e o r p u b l i c group, would  a l i c e n c e t o be i s s u e d by t h e W a t e r B o a r d , and  -  a public hearing licence  t o be h e l d  i n connection with the  application.  S i n c e t h e Water Board decision follow  19 -  i s a q u a s i - j u d i c i a l body, any  i t makes a f t e r a h e a r i n g  i s held  a l l of the rules of natural  grounds t o a t t a c k  Decisions  that  j u s t i c e could  made by t h e B o a r d r e g a r d i n g  Department o f I n d i a n  the issuance of a  A f f a i r s and N o r t h e r n  C.  The D e p a r t m e n t o f I n d i a n  The  Department o f I n d i a n section  constitute  the d e c i s i o n .  w a t e r l i c e n c e must be a p p r o v e d by t h e M i n i s t e r  Act,  does n o t  of the  Development.  A f f a i r s and N o r t h e r n  A f f a i r s and N o r t h e r n  Development  Development  4, s t a t e s :  The d u t i e s , powers and f u n c t i o n s o f t h e M i n i s t e r o f I n d i a n A f f a i r s and N o r t h e r n D e v e l o p m e n t extend t o i n c l u d e a l l matters over which t h e P a r l i a m e n t o f Canada h a s j u r i s d i c t i o n , n o t by law a s s i g n e d t o any o t h e r d e p a r t m e n t , b r a n c h o r a g e n c y o f t h e Government o f Canada, r e l a t i n g to (a) Indian A f f a i r s (b) The N o r t h w e s t T e r r i t o r i e s and t h e Yukon T e r r i t o r y - a n d t h e i r r e s o u r c e s and a f f a i r s . . . 7  The of two  Department lands,  w a t e r s and o f t h e n a t u r a l  territories.  administration the  (DIAND) h a s c o n t r o l o v e r t h e a d m i n i s t r a t i o n  Minister  I t also  resources  i n fehe-  has c o n t r o l over t h e . . J  o f t h e N.I.W.A., and NCPC r e p o r t s t o  o f DIAND.  The M i n i s t e r ,  therefore,  is in  the  20  position of deciding  decisions  for  whether o r n o t t o a c c e p t t h e  o f t h e W a t e r B o a r d , and o f b e i n g g  the operations  VII.  -  and p o l i c i e s  responsible  o f NCPC.  OVERVIEW  The  most i m p o r t a n t  actors  involved  the  A i s h i h i k p r o j e c t were t h e N o r t h e r n Canada Power  Commission, C r i p p e n E n g i n e e r i n g consultant).,  Affairs  NCPC was r e s p o n s i b l e  f o r planning  p r o j e c t , and r e l i e d  Engineering  (NCPC's  engineering  t h e Yukon T e r r i t o r y Water B o a r d , and t h e  Department o f I n d i a n  Aishihik  i n the h i s t o r y of  to help  design  and N o r t h e r n  Development.  and i m p l e m e n t i n g t h e  extensively  the project  on C r i p p e n  and manage i t s  construction.  The  Water B o a r d and NCPC, o f c o u r s e , were k e y a c t o r s i n  the water l i c e n c i n g process; and of  Ministers  the events that  the project.  hired and  took p l a c e  during  also  reports  many  influenced  impact  history.  the h i s t o r y  P e a r s e Bowden E c o n o m i c C o n s u l t a n t s  were  statements  t h a t were u s e d t o s u p p o r t NCPC's  water l i c e n c e a p p l i c a t i o n s . Service  officials  the project's  by NCPC t o p r e p a r e e n v i r o n m e n t a l  other  DIAND  o f DIAND a p p e a r t o have i n f l u e n c e d  A number o f a d d i t i o n a l a c t o r s of  and s e n i o r  The F i s h e r i e s and M a r i n e  o f t h e Department o f t h e Environment a l s o  played  some p a r t  i n designing  extensive  studies  21 -  t h e p r o j e c t and c o n d u c t e d  o f the f i s h e r i e s  i n t h e A i s h i h i k water  SL  system.  A very  important  at the f i r s t  hearing,  representative Foundation. held  r o l e was p l a y e d  intervenor  Mr. R u s s e l l A n t h o n y , who was a  o f t h e C a n a d i a n E n v i r o n m e n t a l Law R e s e a r c h ..  Mr. A n t h o n y o b j e c t e d  to issue  by a s i n g l e  a water  N.I.W.A. R e g u l a t i o n s  to the hearing  being  l i c e n c e on t h e g r o u n d t h a t t h e had n o t y e t been  B e c a u s e h i s o b j e c t i o n was s u s t a i n e d ,  promulgated. Mr. A n t h o n y may have  fundamentally a l t e r e d the e n t i r e course of the p r o j e c t ' s history.  Native on  Indian  g r o u p s have a l s o h a d an i m p o r t a n t  the project.  occupied  influence  A c l a i m h a s b e e n made f o r t h e l a n d  by A i s h i h i k V i l l a g e , w h i c h i s l o c a t e d on t h e  s h o r e s o f t h e A i s h i h i k L a k e , a n d w o u l d be f l o o d e d level  of the lake  i s r a i s e d above t h e h i s t o r i c  i f the  high.  A l t h o u g h NCPC i s l i c e n c e d t o r a i s e t h e l e v e l  of the lake  above t h e h i s t o r i c  so/"^'because  of  the land  report  i t h a s n o t y e t done  claim.  Another important a  high,  a c t o r was Mr. R. N. D a l b y , who w r o t e  a t the request  of the Minister  for the Aishihik project. findings,  the Minister  NCPC's h a n d l i n g  on t h e c o s t  overrun  As a r e s u l t o f t h e r e p o r t ' s  decided  that  a public inquiry  into  o f t h e p r o j e c t w o u l d n o t be n e c e s s a r y .  CHAPTER  ONE  REFERENCES AND  NOTES  J . M. Lowe, NCPC G e n e r a l Manager, L i c e n c i n g H e a r i n g T r a n s c r i p t , 17 J a n u a r y 1973, p.8. I n t e r v i e w , C. P e a r s o n , C h a i r m a n , E l e c t r i c a l P u b l i c U t i l i t i e s B o a r d , 18 A u g u s t 1978. The E l e c t r i c a l P u b l i c U t i l i t i e s B o a r d i s e s t a b l i s h e d u n d e r t h e R e v i s e d O r d i n a n c e s o f t h e Yukon T e r r i t o r y , and i t i s a purpose o f the Board t o r e p o r t t o the Commissioner o f t h e Yukon on e l e c t r i c a l e n e r g y r a t e a d j u s t m e n t s p r o p o s e d by NCPC. The B o a r d d i d n o t p l a y a s i g n i f i c a n t r o l e i n the h i s t o r y of the A i s h i h i k p r o j e c t . J . M. 1972,  Lowe, A i s h i h i k G e n e r a l H e a r i n g T r a n s c r i p t , W h i t e h o r s e , Y.T., p.5.  24  May  NCPC, 2 9 ' t h A n n u a l R e v i e w, M a r c h 1977, p . l . Ibid. Northern Assented February  I n l a n d W a t e r s A c t , 1970, c.28 ( 1 s t Supp.) t o 26 June 1970. P r o c l a i m e d i n f o r c e 28 19 72.  S.9.  D e p a r t m e n t o f I n d i a n A f f a i r s and N o r t h e r n D e v e l o p m e n t Act, 1970, S.4. A l t h o u g h t h e name "Department o f I n d i a n and N o r t h e r n A f f a i r s " i s u s e d e x t e n s i v e l y by t h e d e p a r t m e n t , t h e p r o p e r l e g a l d e s i g n a t i o n i s "Department o f I n d i a n A f f a i r s and N o r t h e r n D e v e l o p m e n t " . The M i n i s t e r c a n o n l y a p p r o v e t h e i s s u a n c e o f a w a t e r u s e l i c e n c e , b u t c a n n o t d e c i d e upon t h e c o n d i t i o n s attached to i t . B e c a u s e o f a l o n g - s t a n d i n g and w e l l - k n o w n rivalry between DIAND and t h e D e p a r t m e n t o f t h e E n v i r o n m e n t (DOE) o v e r n o r t h e r n n a t u r a l r e s o u r c e s management, t h e p a r t i c i p a t i o n o f t h e F i s h e r i e s and M a r i n e S e r v i c e o f DOE, i n g a t h e r i n g e x t e n s i v e t e c h n i c a l i n f o r m a t i o n a b o u t t h e f i s h e r i e s o f t h e A i s h i h i k s y s t e m , w h i c h was u s e d by t h e Water B o a r d i n s e t t l i n g t h e t e r m s f o r t h e w a t e r u s e l i c e n c e s , a p p a r e n t l y gave r i s e t o a number o f problems. While there i s a lack of information concerning what t h e s e p r o b l e m s a c t u a l l y were and how t h e y developed, t h e y do n o t a p p e a r t o have had a s i g n i f i c a n t e f f e c t on t h e c o u r s e o f e v e n t s c o v e r e d i n t h i s s t u d y . An e x c e p t i o n the p r o j e c t .  took p l a c e d u r i n g the c o n s t r u c t i o n See C h a p t e r S i x .  I n t e r v i e w , NCPC o f f i c i a l , 1 September  1978.  of  PART  TWO  SELECTION AND  APPLICATION - JUNE 19:71  chapter w i l l  explain  the  how  the  Aishihik project  why  the  decision  Waters Act  to  was  issue  what i n f o r m a t i o n hearing  II.  SELECTION OF Previous  The  p o t e n t i a l of  NCPC f i r s t  THE  the  it  was  East A i s h i h i k  field  the  made i n t h e water during  first  River  for  investigations  1971,  As  a s m e l t e r and  large  of  and  had  the  the the  site. 1950's,  i t  had  after  project  that  Aishihik  site  a power p o t e n t i a l  benefit  Initial of  a few  t h e s e r e c o r d s were o n l y  abnormally dry  when  low-grade mines.  found capable o f p r o d u c i n g .  flow records,  at  mentioned,  a larger^scale  t o have as  1950's o n l y  1971,  been s u r v e y e d d u r i n g  s u r v e y s c o n d u c t e d i n 19.71, t h e  a period  hydroelectric  next major hydro f a c i l i t y  demands o f  considered later  the  and  SITE  A i s h i h i k . had  w o u l d meet t h e  not  Inland  licence,  W h i t e h o r s e R a p i d s w o u l d be  the  Northern  A i s h i h i k water l i c e n c e ;  l a r g e l y ignored u n t i l  to  the  NCPC;  known f o r many y e a r s p r i o r t o  been e x p e c t e d t h a t  Prior  t o use  by  generated p r i o r to  began a c t i v e  Although the was  was  selected  Knowledge  d e v e l o p m e n t was  was  1972  following;  was  taken the  f o r a water  A.  it  t o MAY  INTRODUCTION  This  -  -  TWO  CHAPTER  I.  23  years.  as  estimates years  taken  of  More r e c e n t e s t i m a t e s  still  potential  because they  of the  practicability and  of u t i l i z i n g  Rainbow F a l l s ,  very  steep  river  confluence The  site  high  discouraged  the  d i d not  more t h a n  the  power  recognize head o f  n e g l e c t i n g the p o t e n t i a l  g r a d i e n t between Rainbow F a l l s  of the  silt  thus  underestimated  and  east  and  till  banks i n the  prospects  the  Otter of  the  and  the  w e s t arms o f t h e A i s h i h i k R i v e r .  that this  area  apparently  e x t r a head c o u l d  be  2 developed.  B.  Initial  Surveys  I n June 1971, surveys in  the  NCPC began some p r e l i m i n a r y r e c o n n a i s s a n c e ,  of p o t e n t i a l south  t i m e t h e A i s h i h i k was  The J. who  20 MW  surveys  start  installation  Mr.  a 330  With the  f o o t net  Steen  Mooney was  was  the  survey  were key  head o f t h e  this for a head.  F.  Mooney,  o f Mr.  Humphry  team, a l l h e l d  decision-makers planning  r e g i o n a l manager and  g e n e r a l manager f o r NCPC.  Steen,  exception  growing  At  for investigation  using  a j u n i o r member o f t h e  Mr.  the A n v i l Mine.  were c o n d u c t e d by M e s s r s . D.  management p o s i t i o n s and NCPC.  of  earmarked  Lowe and.B. Humphrys. was  sites  c e n t r a l Yukon i n r e s p o n s e t o s t e a d i l y  base l o a d s , p l u s the  possible  s m a l l - s c a l e hydro development  senior  in  department,  Mr.  Lowe was  the  -  During the Little  the  -  days f o l l o w i n g  Salmon, T e s l i n and  surveyed of  ten  25  for possible  J u n e 2,  1971,  not  Aishihik,  Long L a k e s y s t e m s were a l l  hydro development.  A i s h i h i k could  the  Investigation  have t a k e n more t h a n a few  days,  3 and  was  conducted using  The  investigations established  h e a d m i g h t be  aircraft  feet over previous  Potential after was  that  on  foot.  a 630  foot  a v a i l a b l e f o r d e v e l o p m e n t , an .  3 00  and  of  4  received  t h e s e s u r v e y s were c o m p l e t e d , the  increase  estimates.  alternative sites  p r e p a r e d on  natural  field  trip  no and  more the  attention report  g a v e most o f  that  i t s attention  5  to the  C. On  Aishihik  site.  Selection June 11,  Aishihik, land  also  at  the  to ensure t h a t  necessary  land  to prevent the  staking  a f t e r the  s u r v e y was  NCPC s u b m i t t e d t o DIAND an  reservation  order the  immediately  mineral  site.^  application step  was  NCPC w o u l d have l e g a l  area  f o r s u r v e y s and  possibility  claims  on  the  project.  The  a p p l i c a t i o n f o r land  and  only  f o r the  This  land  of  In  taken  in use  development,  known t o be  was  the  for  r i g h t to  speculative  reservation  Aishihik site.  made o f  interests  needed  for  taken very  addition,  and  no  promptly,  further  -  field  In  studies  not data the  any  supplied  by  purpose of  study  River  analysis  on-site  the  found t h a t  coal  was  be the  on  "a c o a l - f i r e d  m i l l s per  annual cost  to  and  Ltd.  was  In  the  plant  f o r the  the  the  that  coal  did  based  on  cost  Aishihik  at  kilowatt  coal  addition,  t o make a  estimated of  the  undertaken  project.  Nordenskiold  compete e c o n o m i c a l l y  annual basis  6.7  was  scheme and  would not  an  $710,000 p l u s total  that  only  A i s h i h i k H y d r o D e v e l o p m e n t " , and cost  sites.  Nordenskiold  investigations,  analysis  coal deposit  capital  the  Teslin Exploration  c o m p a r i s o n between t h e  The  developing  However, t h e  involve  alternative  S t e e n gave some c o n s i d e r a t i o n  a l t e r n a t i v e of  deposits.  -  were u n d e r t a k e n o f  e a r l y J u l y , Mr.  possible  26  with  the  total  scheme w o u l d  for fuel,  Aishihik project  whereas  would  be  7 $840,000, and,  of  c o u r s e , no  estimated  of  the  to  cost  a s s e s s the  $7  A i s h i h i k , w h i c h was  economic v i a b i l i t y  c o m p a r i s o n w i t h one was  f u e l w o u l d be  million  It  appears t h a t  it  was  be  utilized  of  established f o r the the  early that  the as 300  project,  convinced  that  available  t o meet t h e  the  u s e d by  project  The Mr.  Steen  in  i t s most c o m p e t i t i v e  excluding as  of  needed.  alternatives, 8 line.  transmission J u n e 1971, f e e t of  the  same month when  a d d i t i o n a l head  could  NCPC d e c i s i o n - m a k e r s became  A i s h i h i k was forecast  the  most d e s i r a b l e  demands.  Subsequent  site to  J u n e 1971, no f u r t h e r  field  NCPC o f a l t e r n a t i v e s i t e s  D.  July  were u n d e r t a k e n by  t o the Aishihik..  studies  of the A i s h i h i k s i t e  and A u g u s t o f 1971 e x c e p t  mapping.  took p l a c e  during  f o r a i r p h o t o c o v e r a g e and  NCPC d i d n o t t a k e a d v a n t a g e o f t h e summer months  to conduct b i o l o g i c a l ,  E. .  studies  Study o f t h e S i t e  No f u r t h e r  of  27 -  the area.  The r e a s o n  Application  NCPC a p p l i e d  hydrologic  f o r Water  and g e o l o g i c a l  surveys  f o r t h i s i s n o t known.  Licence  f o r a water l i c e n c e under t h e Dominion Water  Power A c t f o r t h e A i s h i h i k p r o j e c t  on A u g u s t  31, 1971.  In c o n n e c t i o n w i t h t h i s a p p l i c a t i o n , NCPC i n f o r m e d Mr. I. P e t r i e o f t h e N o r t h e r n Economic Development B r a n c h  that:  F u r t h e r t o t h e Power C o m m i s s i o n ' s f e a s i b i l i t y s t u d i e s i n t h e Yukon, t h e A i s h i h i k R i v e r r e p r e s e n t s t h e most e c o n o m i c power d e v e l o p m e n t t o meet g r o w i n g l o a d i n t h e Yukon a r e a . C o m p l i a n t w i t h t h e D o m i n i o n Water Power R e g u l a t i o n s , we h e r e b y w i s h t o s u b m i t f o r m a l application for licence to u t i l i z e this p a r t i c u l a r l a n d f o r p u r p o s e s o f h y d r o power development. 9 Evidently,  NCPC had d e c i d e d by t h i s d a t e t h a t ,  the  r e c e i p t of the necessary  the  project,  and t h a t  l i c e n c e s , i t would  sufficient  information  s i t e was a v a i l a b l e t o s u p p o r t t h i s  In c o n t r a s t  pending construct  about t h e  conclusion.  t o the d e c i s i v e nature o f t h i s a p p l i c a t i o n ,  NCPC's R e p o r t on A i s h i h i k s t a t e s  that:  -  28  -  In o r d e r t o e v a l u a t e t h e e n g i n e e r i n g validity, R i p l e y , K l o h n & L e o n o f f I n t e r n a t i o n a l was i n v i t e d on September 1 s t , 1971 t o c o n d u c t a s i t e i n v e s t i g a t i o n on m a t t e r s r e l a t i n g t o t h e s t r u c t u r e s a s a f f e c t e d by s o i l c o n d i t i o n s . A c t i v i t i e s e s s e n t i a l to e s t a b l i s h i n g engineering v a l i d i t y were o u t l i n e d t o Management September 3 r d , 1971. T h e s e i n c l u d e d e n v i r o n m e n t a l s t u d i e s , i c e c o n d i t i o n s , s u r v e y , s o i l s and g e o l o g i c a l a n a l y s i s , D.W.P. A c t a p p r o v a l , critical equipment o r d e r , d e s i g n r e q u i r e m e n t s , scheduling, contractor involvement. 10 (emphasis added)  T h e r e a p p e a r s t o be an i n c o n s i s t e n c y DIAND on A u g u s t  31 t h a t  here.  outlined  t o develop the s i t e . those studies  establishing  is  project  the engineering  that  could  very  No g e o l o g i c a l applied the  be  validity  days l a t e r i t  of the project.  r e a s o n why t h e v i a b i l i t y o f  n o t have b e e n e s t a b l i s h e d  little  at this  s u r v e y s had b e e n u n d e r t a k e n when NCPC  f o r the l i c e n c e , y e t the geology o f the s i t e  the f u l l  discouraged  was  the notion  head between t h e o u t l e t o f Canyon L a k e and  confluence o f the East developed.  time  was known o f t h e g e o l o g y o f t h e s i t e .  f a c t o r which had p r e v i o u s l y  that the  Yet, three  f o r a water  t h a t w o u l d be e s s e n t i a l t o  P r o b a b l y t h e most i m p o r t a n t the  informed  the A i s h i h i k represented "the  most e c o n o m i c power d e v e l o p m e n t " and a p p l i e d licence  NCPC  and West A i s h i h i k R i v e r s  could  - 29  III.  THE  -  WATER LICENCE PROCESS  A.  Introduction  The  p r o c e s s o f a p p l y i n g f o r and  proved  t o be  planning  t h e most i m p o r t a n t  and  decision-making  This process it  w i t h t h e new held  process  application  I n l a n d Waters A c t . legislation,  As  delays i n the s t a r t  were c a u s e d  by  later  important is  e v e r made u n d e r  then,  that  project.  as  the  of inexperience h e a r i n g s were  of the p r o j e c t ' s c o n s t r u c t i o n p r o c e s s , and  this  by NCPC management as t h e s i n g l e  reason behind  necessary,  significance  a result  the water l i c e n c i n g  cited  overall  project.  Substantial  was  licence  f o r the A i s h i h i k  three d i f f e r e n t  i n connection with the  a water  component o f t h e  i s a l s o o f some h i s t o r i c a l  i n v o l v e d the f i r s t  Northern  receiving  the p r o j e c t ' s this  most  cost overrun.  p r o c e s s be  factor  It  d e s c r i b e d i n some  detail.  B.  P r e v i o u s Water L i c e n c e  A t t h e t i m e o f NCPC's f i r s t on A u g u s t to The at  31,  1971,  receive a licence Northern the time  Process water  licence  t h e C o m m i s s i o n was  application  legally  u n d e r t h e D o m i n i o n Water Power A c t .  Canada Power C o m m i s s i o n A c t , w h i c h reads:  entitled  applied  -  The  Commission  a p p l i c a t i o n under to  the  The  c o n t a i n i n g c o n t r a s t  would  D e c i s i o n  to  NCPC  a  water  have  necessary out  Crown  t h i s  f o r  i m p o r t a n t  t h a t  treatment  the  a  i t  a  i t s r e v i e w  p r e v i o u s  water  l i c e n c e  requested.  requirements  the  J .  under  o f  the  l e g a l  In the  former  f o r m a l i t y .  by  C h r e t i e n , not  the  a p p l i c a t i o n  be  to  to  o f  to  new  f o r  informed  g i v e n  the the  a p p a r e n t l y  appear  a v o i d i n g  Department  would  r e p o r t i n g  i m p l e m e n t a t i o n  NCPC  submitted  c o n s i d e r a t i o n  s t r i n g e n t  under  c o r p o r a t i o n  i t  the  a  r e c e i v e d  N . I . W . A .  r e s p o n s i b l e  1971,  NCPC  r e c e i v e  been  M r .  31,  t h a t  l i c e n c e  o n l y  a  NCPC  w h i c h  c o n d i t i o n s  M i n i s t e r ,  a f t e r  no  c a r r y  demanding  the  p r e f e r e n t i a l  t h a t  upon  a u t h o r i t y  A c t  i n v o l v e  to  the  c o n s i d e r e d  August  any  Use  was  M i n i s t e r  a b l e  more  o b t a i n i n g  N . I , W . A . ,  on  was  the  then,  appears  v i r t u a l l y  l e g i s l a t i o n  S h o r t l y  o t h e r  to  under  not, i t  NCPC  w i t h  N . I . W . A . ,  any  r e c e i v e  Power  Commission  d i d  Rather,  Because  or  Water  arrangement  arrangement,  same  the  l i c e n c e s  p r o c e s s .  C.  l i c e n c e  to  11  p r e v i o u s  water  any  -  e n t i t l e d  Dominion  enable  A c t .  i s  30  the  r e c e i v e l e g i s l a t i o n .  a  water  the  l i c e n c e  Commission  i s s u i n g  o f  a  12 water  At  l i c e n c e  the  time  u n t i l  t h a t  expected  t h a t  the  next  months,  the  M r . A c t  N . I , W . A .  C h r e t i e n was  to  was  made come  p r o c l a i m e d .  t h i s i n t o  d e c i s i o n , e f f e c t  i t  was  w i t h i n  the  13 few  and  before  the  end  o f  1971.  In  f a c t ,  - 31 -  it  was n o t u n t i l  F e b r u a r y 28, 1972 t h a t  t h e A c t was  proclaimed.  The  following  referring between behind  statement, contained  i n an NCPC memorandum  t o t h e m i n u t e s o f a J a n u a r y 24, 1972 m e e t i n g  NCPC and DIAND o f f i c i a l s , this  explains  the reasoning  decision.  Y a t e s f e l t t h a t IAND c o u l d n o t p r o c e e d t o a c c e p t a water use program ( A i s h i h i k ) under the D o m i n i o n Water Power A c t w i t h t h e N o r t h e r n I n l a n d W a t e r s A c t i m m i n e n t l y t o be p u t i n t o effect. Reason was t h a t p u b l i c and o t h e r D e p a r t m e n t a l o p i n i o n m i g h t be t h a t IAND s q u e e z e d t h e Commission i n u n d e r t h e w i r e s o as t o a v o i d t h e r e g u l a t i o n s a s p e r i m p e n d i n g N o r t h e r n I n l a n d W a t e r s A c t . 14 The A s s i s t a n t explained  Deputy M i n i s t e r , Mr. D i g b y Hunt,  also  that:  We w o u l d have a v e r y d i f f i c u l t t i m e t r y i n g t o j u s t i f y l i c e n c i n g t h e p r i v a t e s e c t o r i f we c h o s e t o make e x c e p t i o n s f o r government a g e n c i e s and c o r p o r a t i o n s . 15  The  fact  that  i t w o u l d have t o a p p l y  f o r a water  licence  u n d e r t h e N.I.W.A. s h o u l d n o t have come a s a c o m p l e t e surprise  t o NCPC.  NCPC's o r i g i n a l  Correspondence dated previous t o  application  on A u g u s t 31 m e n t i o n s  h e a r i n g s were t o be h e l d b e f o r e t h e Water connection with the project, the  Water  Board.  t i m e t h e ADM  that  Board i n  a n d names t h e C h a i r m a n o f  I n a d d i t i o n , Mr. D. Hunt was a t t h e  f o r N o r t h e r n Development  member o f t h e C o m m i s s i o n  f o r DIAND and a  f o r NCPC, and Mr. B. R o b i n s o n  - 32 was t h e DM f o r DIAND and t h e C h a i r m a n o f t h e C o m m i s s i o n f o r NCPC.  I t w o u l d be r e a s o n a b l e t o assume t h a t NCPC's  management was aware o f t h e p o s s i b i l i t y would  t h e N.I.W.A.  s i n c e NCPC was g i v e n no f o r m a l  instructions  apply.  Nevertheless, prior it  that  t o August  still  31 t o a p p l y u n d e r t h e new l e g i s l a t i o n ,  made i t s i n i t i a l  application  C o p i e s o f t h e N.I.W.A. were a v a i l a b l e and i t w o u l d n o t have been d i f f i c u l t that  t h e u s e o f t h e N.I.W.A. w o u l d  u n d e r t h e D.W.P.A. t o NCPC a t t h a t  time  f o r NCPC t o a s c e r t a i n  complicate  the application  process.  IV. A.  GENERATION OF INFORMATION E n v i r o n m e n t a l Study Delays  Section  11(2) o f t h e N o r t h e r n I n l a n d W a t e r s A c t s t a t e s :  The a p p r o p r i a t e b o a r d s h a l l r e q u i r e an a p p l i c a n t f o r a l i c e n c e t o provide i t w i t h such i n f o r m a t i o n and s t u d i e s c o n c e r n i n g t h e u s e o f w a t e r s p r o p o s e d by t h e a p p l i c a n t a s w i l l e n a b l e i t t o e v a l u a t e any q u a l i t a t i v e a n d q u a n t i t a t i v e e f f e c t s o f t h e p r o p o s e d u s e o n t h e w a t e r management a r e a i n w h i c h t h e a p p l i c a n t p r o p o s e s t o u s e s u c h w a t e r s . 17 In a d d i t i o n t o t h e wording o f s e c t i o n NCPC was g i v e n  11 o f t h e N.I.W.A.,  c o n s i d e r a b l e a d v a n c e w a r n i n g t h a t an  e n v i r o n m e n t a l i m p a c t s t a t e m e n t w o u l d be n e e d e d . letter  In a  f r o m L e o B r a n d o n , C h a i r m a n o f t h e Water B o a r d t o  NCPC on November 19, 1971, t h e f o l l o w i n g a d v i c e was given:  -  33  -  I . . . suggest that the Regulations w i l l i n a l l p r o b a b i l i t y c a l l f o r an e n v i r o n m e n t a l i m p a c t r e p o r t f r o m t h e a p p l i c a n t and t h e r e f o r e I t h i n k i t w o u l d be w i s e i f y o u a s k e d y o u r C o n s u l t a n t s t o s t a r t work on an e n v i r o n m e n t a l s t u d y and r e p o r t b e c a u s e t h i s w o u l d r e c o r d t h e concerns which you r e c o g n i z e i n water d e v e l o p m e n t schemes o f t h i s n a t u r e . 18  With  t h e h e l p o f C r i p p e n E n g i n e e r i n g , NCPC  with basic but  e n g i n e e r i n g s t u d i e s d u r i n g t h e autumn and w i n t e r ,  i td i d not hire  a c o n s u l t a n t t o undertake  of  an e n v i r o n m e n t a l i m p a c t  It  appears  the  proceeded  statement  until  M a r c h 9, 1972.  t h a t NCPC d e c i s i o n - m a k e r s were n o t aware o f  l e n g t h o f time n e c e s s a r y t o complete  e n v i r o n m e n t a l impact  report,  since  an  at that  adequate time  C o m m i s s i o n was a n x i o u s t o b e g i n c o n s t r u c t i o n it  could.  overall should of not  the preparation  Perhaps  the  as soon as  owing t o a l a c k o f e x p e r i e n c e , t h e  c o n c e p t o f what an e n v i r o n m e n t a l i m p a c t  statement  a c c o m p l i s h and why i t w o u l d be an i m p o r t a n t  the planning process f o r a hydroelectric have b e e n f u l l y  appreciated.  component  facility  might  I f NCPC r e c o g n i z e d  t h i s n e e d , i t c e r t a i n l y w o u l d have begun t o u n d e r t a k e the  field,  and o t h e r n e c e s s a r y work f o r s u c h a s t u d y a t  the  same t i m e a s t h e e n g i n e e r i n g s t u d i e s .  On F e b r u a r y  15, 1972, Mr. B r a n d o n a g a i n w r o t e  and  e x p l a i n e d t h e need  and  supplied  a brief  f o r an e n v i r o n m e n t a l  outline  t o NCPC  impact.study,  o f what i t s h o u l d  contain.  -  34  -  I n c l u d e d w i t h the NCPC s a p p l i c a t i o n f o r a w a t e r r i g h t on t h e A i s h i h i k R i v e r t h e r e must be an e n v i r o n m e n t a l i m p a c t statement. 1  This  B. On  statement  items:  The e f f e c t on w i l d l i f e and f i s h o f any a l t e r a t i o n t o the flow or regime o f the r i v e r and by t h e impoundment o f any r e s e r v o i r . A Biologists r e p o r t w i l l be r e q u i r e d o u t l i n i n g t h e s p e c i e s o f w i l d l i f e and f i s h p r e s e n t w h i c h may be a f f e c t e d and r e f e r e n c e s h o u l d be made t o t h e s e a s o n a l movement o f these c r e a t u r e s w i t h i n the water shed i f t h e r e i s an e f f e c t on t h i s movement.  2.  The a e s t h e t i c e f f e c t o f any new s t r u c t u r e s . I t w o u l d be n e c e s s a r y t o d e s c r i b e t h e p r e s e n t s c e n e r y w i t h i n t h e v a l l e y and r e f e r e n c e s h o u l d be made t o t h e famous O t t e r F a l l s and o t h e r w a t e r f a l l s n e a r by. The r e p o r t s h o u l d a l s o d e s c r i b e any c o n s e q u e n c e s t o t h i s s c e n e r y as a r e s u l t o f t h e h y d r o - e l e c t r i c d e v e l o p m e n t .  3.  Items o f I t i s my Aishihik s i t e s and together may h a v e  The  human i n t e r e s t s h o u l d be d e s c r i b e d . ... understanding t h a t the shores of L a k e have a number o f a r c h a e o l o g i c a l a d e s c r i p t i o n of these i s necessary w i t h t h e e f f e c t t h a t impoundment on them. 19  Environmental  M a r c h 9,  on A p r i l  1972,  submitted  Impact  NCPC h i r e d  Study Pearse-Bowden  L t d . to undertake the 30,  1972  Impact S t a t e m e n t was  after  cover.three  1.  Consultants and  should  the  been  environmental  report A Preliminary  c o m p l e t e d by  t o t h e W a t e r B o a r d by  i t had  Economic  authorized.  Pearse-Bowden  NCPC, o n l y  studies, Environmental and  s e v e n weeks  -  The  impact  subject  statement  -  c o n t a i n e d a comprehensive  areas, including  aesthetic  35  the b i o l o g i c a l ,  e f f e c t s of the p r o j e c t ,  of  the requirements mentioned  to  the short  time devoted  social  of  and  and o s t e n s i b l y met a l l  i n Brandon's o u t l i n e .  t o t h e s t u d y and  b a s e l i n e d a t a , t h e s t a t e m e n t was to  range  Owing  the l a c k  i n t e n d e d by  of  i t s authors  be: r e g a r d e d p r i m a r i l y as an a s s e s s m e n t o f t h e number, n a t u r e and r e l a t i v e m a g n i t u d e o f t h e e n v i r o n m e n t a l p r o b l e m s l i k e l y t o be c r e a t e d by t h e h y d r o e l e c t r i c d e v e l o p m e n t r a t h e r t h a n as an e v a l u a t i o n o f s p e c i f i c c a u s e s and e f f e c t s .  The  concept of a "preliminary  was  a l s o d e s c r i b e d by Mr.  the  report,  environmental impact  Bowden, t h e p r i n c i p a l  20  statement"  author of  as:  ... a s t u d y t o d e s c r i b e t h e e n v i r o n m e n t a l c o n s e q u e n c e s o f an a c t i o n a s r e v e a l e d by careful analysis of existing information, e x p e r t i n f o r m a t i o n , , e x p e r t o p i n i o n , and s u c h r e c o n n a i s s a n c e s u r v e y s and s t u d i e s as may be f e a s i b l e w i t h i n the time a v a i l a b l e . 21  I t was  c o n s i d e r e d by NCPC o f f i c i a l s  provided to  an a d e q u a t e  that  e v a l u a t e the a p p l i c a t i o n  and  G e n e r a l Manager o f NCPC, s t a t e d which  statement  body o f d a t a t o e n a b l e t h e Water grant a licence  permit the c o n s t r u c t i o n o f the p r o j e c t .  for  the  t h e s t a t e m e n t was  As Mr.  d u r i n g t h e May  prepared:  that  Board would  J . Lowe, 1972  hearing,  -  36  -  That i s the e n v i r o n m e n t a l impact statement as we see i t , Mr. C h a i r m a n . However, s h o u l d s o m e t h i n g more e l a b o r a t e be r e q u i r e d , t h e n c e r t a i n l y i t s h a l l be done. We f e e l t h a t ' s s u f f i c i e n t f o r l i c e n c i n g at t h i s time. 22  C.  Engineering  Additional did  Design  field  not begin  s t u d i e s f o l l o w i n g the  until  September  intended  to determine the  the  i n order  area  scheme f o r t h e and  Leonoff  and  and  rock  subsoil  surveys  conditions i n  t h e most s u i t a b l e h y d r o e l e c t r i c  were c o n d u c t e d  on  both  c o n d i t i o n s and  extended i n t o  by  Ripley,  Klohn  consultants.  Test  s i d e s of the the  extent  the w i n t e r  the  The  e n g i n e e r i n g c o n s u l t a n t f o r t h e p r o j e c t was  E n g i n e e r i n g L t d . of Vancouver. for feasibility  d e s i g n o f t h e p r o j e c t and it  played  a very  making p r o c e s s conducted  Aishihik  site  NCPC.  Crippen  for  was the  c o n s t r u c t i o n management.  The  to  Consequently,  and d e c i s i o n -  company had  investigations prior As  permafrost,  Engineering  c e n t r a l p a r t i n the p l a n n i n g  i t s own  to  1971-72.  s t u d i e s as w e l l as  f o r the p r o j e c t .  c o m m i s s i o n e d by  Crippen  of  River  of  and  responsible  surveys  T h e s e s t u d i e s were  International Ltd., soils  h o l e p i t s were e x c a v a t e d determine  soil  to select  site,  1971.  June 1971  also  being  NCPC management's R e p o r t  states:  F o l l o w i n g a September, 1971 s i t e i n v e s t i g a t i o n by t h e e n g i n e e r i n g c o n s u l t a n t - t o - b e , a r e p o r t was f i l e d on O c t o b e r 4, o u t l i n i n g t h e n a t u r e o f t h e o r i g i n a l c o n c e p t , i t s a d v a n t a g e s and  on  -  37  -  p o s s i b l e c o n t i n g e n c i e s and an i n v e s t i g a t i o n program to e s t a b l i s h s u b s u r f a c e d a t a , hydrology, topography, c o n s t r u c t i o n m a t e r i a l test pitting. (emphasis added) 23  Minutes of  a meeting held  NCPC o f f i c i a l s D.  Duguid o f  this  time the  Crippen Engineering, general  been d e t e r m i n e d .  the  river  not  powerhouse s h o u l d  even s u g g e s t e d t h a t  the  D.  1971  between  Steen w i t h  indicate that  l o c a t i o n of I t was  22,  October  J . Lowe, J . L o n g and  yet  the  on  the  by  powerhouse had  known on be  Mr.  which s i d e  located,  and  i t  possibility  of  locating  p o w e r h o u s e j u s t b e l o w Rainbow F a l l s  be  investigated  which would e n a b l e o n l y As  stated  i n the  not  a 30 0 f o o t head t o be  of was  the further,  developed.  minutes:  4) A p e n s t o c k t o powerhouse on w e s t b r a n c h o f A i s h i h i k R i v e r m i g h t be b e t t e r f r o m a permafrost standpoint (less extensive since south f a c i n g ) . 5) Powerhouse on West A i s h i h i k n o t favourable due t o u n c o n t r o l l e d n a t u r e o f t h i s r i v e r and p o t e n t i a l s l o p e f a i l u r e s i n t h e p r e d o m i n a n t s t e e p b a n k s . ... I t was n o t e d t h a t o n l y 3 0 0 ' o f head w o u l d be a v a i l a b l e by l o c a t i n g powerhouse b e l o w Rainbow F a l l s ( a p p r o x i m a t e l y 50% o f t h a t o f t h e o r i g i n a l scheme o r 10 MW c a p a c i t y t o t a l ) . More b a c k h o e work was d i s c u s s e d and deemed u s e f u l a t t h e p e n s t o c k r o u t e s and a t t h e low p r o f i l e dam above Rainbow F a l l s . 24  It and  i s not the  soils  s u r p r i s i n g that  canal  and  had  not  yet  the  location of  been d e t e r m i n e d ,  g e o l o g i c a l s u r v e y s had  only  the  powerhouse  since  begun t h e  the previous  month.  -  38  -  An  important  f e a t u r e of the  is  t h a t t h e powerhouse i s l o c a t e d u n d e r g r o u n d .  of  this  possibility  November, 1971. R e p o r t on  As  final  d i d not, mentioned  design  apparently,  of the p r o j e c t Discussions  begin  until  i n NCPC management's  Aishihik:  I n November, 1971 t h e c o n c e p t o f an u n d e r g r o u n d powerhouse was d i s c u s s e d by t h e c o n s u l t a n t and work i n t h i s d i r e c t i o n c o n t i n u e d . 25  Another very how  important  f e a t u r e of the p r o j e c t concerns  w e l l i t i s able to i n t e g r a t e with  generation enables winter that  system.  the  facility  peaking,  this  The  storage  t o be  used very  effectively  when demands a r e v e r y had  not  l a t e M a r c h , 1972,  two  months p r i o r  An  existing  c a p a c i t y of A i s h i h i k Lake  concept  hearings.  the  high.  been d i s c u s s e d by  NCPC memorandum d a t e d  for  I t appears NCPC  to the water M a r c h 23,  until licence  1972  states:  Duguid suggests t h a t a 3rd u n i t p r o v i s i o n a t A i s h i h i k s h o u l d be c o n s i d e r e d now s i n c e i t w o u l d f i r m up and b a l a n c e s y s t e m i n f o l l o w i n g way. Upper Yukon l a c k s s u f f i c i e n t w a t e r volume t o m a i n t a i n hydro peaks i n w i n t e r . Aishihik c o u l d p r o v i d e t h i s peak and c u t b a c k p r o d u c t i o n i n summer when p l e n t y o f w a t e r i n Yukon R i v e r . A i s h i h i k water i s e a s i l y s t o r e d f o r w i n t e r p r o d u c t i o n and i s n o t s u s c e p t i b l e t o l a c k o f water s i n c e i t i s p r i m a r i l y a h i - h e a d - l o flow system. 26 The  c o n s u l t a n t a l s o w r o t e t o Mr.  F. Mooney, NCPC's  r e g i o n a l manager f o r t h e Yukon, on A p r i l that:  3,  and  explained  ... our why  39  -  one a d d i t i o n a l f a c t has come t o l i g h t i n recent studies p r o v i d i n g another reason A i s h i h i k s h o u l d be b u i l t .  ... By h o l d i n g b a c k on g e n e r a t i o n a t A i s h i h i k d u r i n g t h e summer, w a t e r c o u l d be s t o r e d t o g e n e r a t e a d d i t i o n a l power d u r i n g w i n t e r months, e f f e c t i v e l y f i r m i n g up t h e a d d i t i o n a l W h i t e h o r s e capacity. A s y s t e m s t u d y m i g h t show t h a t what amounts t o s t o r i n g s u r p l u s Upper Yukon w a t e r i n A i s h i h i k L a k e c o u l d be s u c h an a d v a n t a g e t h a t an e a r l y i n s t a l l a t i o n o f a t h i r d u n i t c o u l d be j u s t i f i e d . Finally,  the  NCPC management's R e p o r t on  Aishikik  27  states:  The c o n c e p t o f w i n t e r p e a k i n g w i t h A i s h i h i k i n c o m b i n a t i o n w i t h W h i t e h o r s e R a p i d s was outlined by t h e e n g i n e e r i n g c o n s u l t a n t A p r i l 3 r d 1972. 28  D.  Engineering  In A p r i l ,  1972,  Engineering The  and  the  the  the  necessary following  description  Aishihik  R e p o r t was  purpose of  with the  Study  of  the  River  c o m p l e t e d by  report  was  to  information areas of  the  power p o t e n t i a l , e f f e c t s on  and  Rainbow F a l l s ,  The  of  report  the  area,  Water  a water  of  covered:  soils,  the  Board  licence,  hydrology  A i s h i h i k L a k e and  a description  mentions that  the  the  Engineering.  Otter  physical  project.  storage requirements or impacts of  supply  to grant  and  layout  Crippen  i n v e s t i g a t i o n were  geology of  and  Power D e v e l o p m e n t  project.  little of As  the the  was  known o f  possible report  the  necessary  environmental states:  -  40 -  S u f f i c i e n t i n v e s t i g a t i o n has been c a r r i e d out i n t h e j u s t completed program t o e s t a b l i s h f e a s i b i l i t y of the project. However, t h e r e a r e s t i l l many unknowns w h i c h s h o u l d be i n v e s t i g a t e d p r i o r t o , or i n the e a r l y stages of, construction. 29 The  report  also  recommended  w o u l d a s s e s s how t h e p r o j e c t existing as  generation  that  a systems study,  could  best  which  f i t into the  s y s t e m , s h o u l d be c a r r i e d o u t a s s o o n  possible. A systems study can a s s i s t i n d e t e r m i n i n g t h e a d d i t i o n a l capacity j u s t i f i e d a t both Whitehorse and A i s h i h i k . For the l a t t e r , t h i s i s immediately important since dimensions o f c o n d u i t s a n d powerhouse f o r t h e a d d i t i o n a l u n i t must be e s t a b l i s h e d . 30  V. In  SUMMARY J u n e , 1971, NCPC c o n d u c t e d p r e l i m i n a r y  surveys at the A i s h i h i k field  investigators  h e a d was a v a i l a b l e t h a n was p r e v i o u s l y  and s e v e r a l  determined that  reconnaissance  other  sites.  a l m o s t t w i c e a s much  f o r development a t t h e A i s h i h i k thought  a land  reservation  other alternative sites during  the  f o r only  the A i s h i h i k  t o t h e A i s h i h i k were  t h e summer o f 1971, and v e r y  investigations same t i m e  little  were made o f t h e A i s h i h i k period.  site  possible.  I m m e d i a t e l y a f t e r t h e s u r v e y s were c o m p l e t e d , NCPC for  The  applied  site.  investigated  further  site  No  during  - 41 In J u l y , 1971, a c o s t comparison was made between the A i s h i h i k p r o j e c t and a c o a l - f i r e d a l t e r n a t i v e .  The  A i s h i h i k p r o j e c t was c a l c u l a t e d t o c o s t $7.8 m i l l i o n , which made i t appear t o be a much b e t t e r  On August 31, 1971, NCPC a p p l i e d  alternative.  f o r a water l i c e n c e  under the Dominion Water Power A c t t o develop the s i t e , and s t a t e d i n i t s request t h a t the A i s h i h i k was the most economic o f the a v a i l a b l e a l t e r n a t i v e s .  At t h a t  time, the e n g i n e e r i n g f e a s i b i l i t y o f the p r o j e c t had n o t , a p p a r e n t l y , been  established.  S h o r t l y a f t e r NCPC submitted i t s a p p l i c a t i o n , i t was informed by DIAND t h a t the water l i c e n c e would have t o be processed through the Northern Inland  Waters A c t ,  which was not y e t proclaimed.  The contents o f the N.I,W.A. were a v a i l a b l e t o NCPC i n September,  1971, when i t was informed t h a t the A i s h i h i k  water l i c e n c e would n o t be i s s u e d  under the D.W.P.A.  The N.I.W.A. s t a t e s t h a t i n f o r m a t i o n and q u a n t i t a t i v e be s u p p l i e d  about the q u a l i t a t i v e  e f f e c t s o f a proposed water use has t o  by the a p p l i c a n t .  On November 19, 1971, the Chairman o f the Water Board informed NCPC t h a t an environmental impact statement  - 42 -  w o u l d be r e q u i r e d ,  and a d v i s e d NCPC t h a t  t h e n e c e s s a r y s u r v e y s and s t u d i e s time.  t o p r e p a r e one a t t h a t  On F e b r u a r y 15, 1972, t h e C h a i r m a n a g a i n  t o NCPC and s t a t e d  that  required,  e x p l a i n e d what i t e m s  and a l s o  NCPC d i d n o t h i r e an  impact  an i m p a c t  wrote  s t a t e m e n t w o u l d be i t should  contain.  a consultant to begin preparation of  statement  NCPC f o r w a r d e d and  i t should begin  until  M a r c h 9, 1972.  a formal a p p l i c a t i o n  On M a r c h 21,  f o r a water  licence,  t h e h e a r i n g was s c h e d u l e d f o r May 24-25, 1972.  to these time c o n s t r a i n t s , only  The  t h e s t u d y was c o m p l e t e d i n  s e v e n weeks and was p r e l i m i n a r y  application  proposed  that  s h o u l d b e g i n i n May, 197 2,  Owing  i n nature.  construction of the project  and w o u l d be c o m p l e t e d i n  December, 1973.  Perhaps  the best a v a i l a b l e  e x p l a n a t i o n f o r why NCPC d i d  not b e g i n t h e e n v i r o n m e n t a l impact is  that  i t was n o t f u l l y  study sooner  aware o f t h e p u r p o s e  than  i t did  and i m p o r t a n c e  o f t h e i n f o r m a t i o n t h a t w o u l d be c o n t a i n e d i n s u c h a statement. that  Consequently,  an a d e q u a t e  compile,  and t h a t  t h e Power C o m m i s s i o n c o n s i d e r e d  s t a t e m e n t w o u l d be r e l a t i v e l y  i t w o u l d n o t h a v e an i m p o r t a n t b e a r i n g  on w h e t h e r o r n o t t h e B o a r d w o u l d It  easy t o  therefore d i d not give p r i o r i t y  o f an e n v i r o n m e n t a l i m p a c t  issue  a water  licence.  to thepreparation  statement.  NCPC d i d n o t b e g i n establish until did  the necessary  the engineering  September,  field  feasibility  1971, and n o t u n t i l  NCPC and i t s e n g i n e e r i n g  investigations to of the p r o j e c t  November, 1971,  consultant  consideration of the p o s s i b i l i t y  begin  serious  o f l o c a t i n g t h e powerhouse  underground.  In  l a t e M a r c h and e a r l y A p r i l  adding t o the generating using  i t f o r winter  of the storage discussed. Board that  The in the  p e a k i n g p u r p o s e s by t a k i n g  capability  i t proposed t o s t a r t  first April,  advantage  o f A i s h i h i k L a k e , was  construction  first  t o t h e Water  i n May, 1972.  engineering  report  1972.  the environmental  engineering  Like  f o r t h e p r o j e c t was  r e p o r t was p r e l i m i n a r y  impact  completed  study,  i n n a t u r e and  l a r g e amounts o f t e n t a t i v e i n f o r m a t i o n .  reports  May, 197 2  the  o f t h e p r o j e c t , and  On M a r c h 15, 1972, NCPC a p p l i e d  information  In  capacity  f o r a water l i c e n c e , s t a t i n g i n t h e a p p l i c a t i o n  contained two  o f 1972, t h e c o n c e p t o f  together  formed t h e t o t a l  These  body o f w r i t t e n  made a v a i l a b l e t o t h e p u b l i c b e f o r e t h e hearing.  sum, i t m i g h t a p p e a r t h a t NCPC was i l l - p r e p a r e d f o r first  given  hearing.  Very  to the preparation  l i t t l e t i m e and a t t e n t i o n was of the environmental  impact  -  statement,  which  inadequate  f o r  l i c e n c e . and  the  I t  the  I f  the  a l s o  as  intended  far  Water  purpose appears  g e n e r a t i o n  progressed NCPC  the  44  o f as  -  Board o f  d e c i d i n g  t h a t  the  t e c h n i c a l i t  to  b e g i n  to  have  l a t e r  found upon  d e s i g n  o f  i n f o r m a t i o n  perhaps  s h o u l d  c o n s t r u c t i o n  have,  to a  be  water the  had  use  p r o j e c t not  g i v e n  i m m e d i a t e l y  t h a t  a f t e r  h e a r i n g .  NCPC  seems  c e r t a i n l y  d i d  the  Board  Water  shown  i n  the  share and  next  been  t h i s the  i l l - p r e p a r e d ,  problem s e n i o r  chapter.  w i t h  l e v e l s  the o f  however,  i t  membership DIAND,  as  o f  - 45 CHAPTER  TWO  REFERENCES AND  NOTES  1.  G. E . C r i p p e n & A s s o c i a t e s , " A i s h i h i k D e v e l o p m e n t " , A p r i l 1972, p . 2 - 1 .  2.  Ibid.  3.  NCPC, " R e p o r t on F i e l d T r i p t o A i s h i h i k & K a k i s a R i v e r s , June 1971", i n R e p o r t on A i s h i h i k , NCPC, M a r c h 1976, r e f . 1.04.  4.  I b i d . , p.3.  5.  Ibid.  6.  NCPC, R e p o r t  7.  D. S t e e n , P l a n n i n g D e p a r t m e n t , NCPC, t o J . M. Lowe, G e n e r a l Manager, NCPC, "Power P o t e n t i a l f r o m N o r d e n s k i o l d C o a l D e p o s i t s " , 7 J u l y 1971, i n R e p o r t on A i s h i h i k , r e f . 2.0.  8.  Ibid.  9.  J . M. Lowe t o I . P e t r i e , Land A d m i n i s t r a t i o n , DIAND, 31 A u g u s t 1971, i n H y d r o - E l e c t r i c D e v e l o p m e n t , A i s h i h i k Yukon, S t r u t t L a k e NWT, and N o r t h e r n Canada Power Commission, ( h e r e a f t e r r e f e r r e d t o as t h e Dalby R e p o r t ) , R. N. D a l b y & A s s o c i a t e s , A p r i l 1976, A t t a c h m e n t 1.  on A i s h i h i k ,  on A i s h i h i k ,  Section  4, p . l .  10.  NCPC, R e p o r t  11.  N o r t h e r n Canada Power C o m m i s s i o n A c t , C h a p t e r N-21, Section (2).  12.  NCPC, R e p o r t  13.  G. O l s o n , Manager, S p e c i a l P r o j e c t s , NCPC, t o A. D. Hunt, A s s i s t a n t D e p u t y M i n i s t e r , DIAND, 5 A p r i l 1974, "Notes Re Yukon Power". Mr. O l s o n s t a t e d t h a t : "N.C.P.C. was a d v i s e d by D.I.A.N.D. t o a w a i t coming i n t o e f f e c t o f t h e N o r t h e r n I n l a n d W a t e r s A c t w h i c h was e x p e c t e d t o be i n t h e f a l l o f 1971".  14.  D. S t e e n t o J . Lowe, 25 J a n u a r y 1972, " M i n u t e s o f M e e t i n g IAND/NCPC - J a n u a r y 24/72", i n R e p o r t on A i s h i h i k , r e f . 4.08.  15.  A.  on A i s h i h i k ,  Section  R i v e r Power  Section  1, p . l .  4, p . 2 .  D. Hunt t o J . M. Lowe, 5 December 1972.  - 46 16.  J . H. R e y n o l d s , NCPC t o J . M. Lowe, " A i s h i h i k Land and W a t e r R e s e r v a t i o n " , 18 A u g u s t 1971; and J . K. Naysmith, N o r t h e r n Economic Development Branch, t o J . M. Lowe, 25 A u g u s t 1971, b o t h i n R e p o r t on A i s h i h i k , r e f s . 4.02 and 4.03.  17.  Northern 11(2).  18.  L . V. B r a n d o n , C h a i r m a n , Yukon T e r r i t o r y Water B o a r d t o F. Mooney, R e g i o n a l Manager, NCPC, 19 November 1971.  19.  L . B r a n d o n t o F. Mooney, R e g i o n a l Manager NCPC, 15 F e b r u a r y 1972, i n R e p o r t on A i s h i h i k , r e f . 4.09.  20.  P e a r s e Bowden, E c o n o m i c C o n s u l t a n t s L t d . , " A i s h i h i k R i v e r Power D e v e l o p m e n t , A P r e l i m i n a r y E n v i r o n m e n t a l Impact A s s e s s m e n t " , 20 A p r i l 1972, p . i i i .  21.  P e a r s e Bowden E c o n o m i c C o n s u l t a n t s L t d . , " E n v i r o n m e n t a l I m p l i c a t i o n s o f A i s h i h i k R i v e r Power D e v e l o p m e n t , Yukon T e r r i t o r y , A Compendium R e p o r t " , 30 May 1975, p . l f n .  22.  J . M. Lowe, G e n e r a l H e a r i n g T r a n s c r i p t s , W h i t e h o r s e , Y.T., p.20.  23.  NCPC, R e p o r t on A i s h i h i k ,  24.  D. S t e e n t o J . M. Lowe, "Re: M e e t i n g a b o u t A d d i t i o n a l Power t o W h i t e h o r s e A r e a " , 1 November 1971, i n R e p o r t on A i s h i h i k , r e f . 1.13.  25.  NCPC, R e p o r t on A i s h i h i k ,  26.  D. S t e e n t o J . Lowe, 23 M a r c h 1972, i n R e p o r t on A i s h i h i k , r e f . 1.17.  27.  D. D u g u i d , c o n s u l t i n g e n g i n e e r , G. E . C r i p p e n & A s s o c i a t e s L t d . , t o F. Mooney, 3 A p r i l 1972, i n R e p o r t on A i s h i h i k , r e f . 1.18.  28.  NCPC, R e p o r t on A i s h i h i k ,  29.  G. E . C r i p p e n & A s s o c i a t e s , D e v e l o p m e n t " , p.8-1.  30.  Ibid.,  I n l a n d W a t e r s A c t , R.S.C. 1970, c . 2 8 , S e c t i o n  p.8-3.  Section  Section  Section  24 May 1972,  1, p . l .  1, p.2.  1, p.2.  " A i s h i h i k R i v e r Power  -  47 -  CHAPTER THREE THE  FIRST HEARING - MAY,  I.  INTRODUCTION  This  chapter deals  immediately before  Prior  with the events that and d u r i n g  t o the hearing,  senior  officials  1972  place  hearing.  i t was e x p e c t e d by NCPC and by  i n DIAND t h a t  p r o b a b l y w o u l d , be a p p r o v e d hearing.  the f i r s t  took  a water  immediately  l i c e n c e c o u l d , and following the  As Mr. R o b i n s o n , D e p u t y M i n i s t e r  f o r the  D e p a r t m e n t , and C h a i r m a n o f t h e C o m m i s s i o n  f o r NCPC  explained  t o t h e M i n i s t e r on M a r c h 9, 1972:  I t i s h i g h l y d e s i r a b l e . . . t h a t a p p r o v a l be g i v e n b e f o r e t h e end o f May. This w i l l c u l m i n a t e i n v e s t i g a t i o n work c a r r i e d o u t b y t h e C o m m i s s i o n o v e r t h e p a s t t w e l v e months. I n o u r o p i n i o n t h e Water B o a r d c a n p e r f o r m a l l i t s f u n c t i o n s a d e q u a t e l y and s t i l l p r o c e s s the a p p l i c a t i o n i n s u f f i c i e n t time. 1  A number o f p r o b l e m s a f f e c t e d t h e outcome o f t h e f i r s t hearing,  however, t h e most i m p o r t a n t  Water B o a r d d i d n o t y e t have l e g a l water  licence.  licence  A.  that  authority  to issue a  NCPC d i d n o t r e c e i v e  following the hearing,  construction  II.  As a r e s u l t ,  o f w h i c h was t h a t t h e  and was n o t a b l e  a water  to begin  summer.  PREPARATIONS FOR THE HEARING Legal  Constraints  Under s e c t i o n  15 o f t h e N o r t h e r n  Inland  Waters A c t , a  water board  may  48  -  hold a p u b l i c hearing  f o r two  different  reasons. 15. C.1).  (2)  A p u b l i c h e a r i n g may be h e l d i n c o n n e c t i o n w i t h any m a t t e r r e l a t i n g t o i t s o b j e c t s where t h e b o a r d i s s a t i s f i e d t h a t s u c h a h e a r i n g w o u l d be i n t h e public interest. A public hearing (a) for  I t was section  intended 15(2)  t h a t the  first  h e l d by  t h a t a l i c e n c e w o u l d be  the hearings,  to a hearing being  N.I.W.A. R e g u l a t i o n s  a Vancouver  could not  and  be  Mr.  The  action  Mr.  significant  effect  on  the  on  Mr.  under  R.  the the  Board  decided  instead.  of the  and  The  t h e r e f o r e have had course  a  history  of  the A i s h i h i k p r o j e c t .  The  d e c i s i o n to h o l d the h e a r i n g under s e c t i o n  must have come a t a v e r y quotation  late  hour.  h e a r i n g was  to begin  a t 7:00  afternoon  that  15(1)  following  comes f r o m t h e m i n u t e s o f a m e e t i n g o f  W a t e r B o a r d , w h i c h began d u r i n g t h e The  The  evening.  2  However,  Anthony's o b j e c t i o n  h e l d u n d e r s e c t i o n 15(1)  very  lawyer,  issued u n t i l  t h e h e a r i n g was  A n t h o n y may  held  formally objected  were p r o m u l g a t e d .  i t w o u l d have t o u p h o l d  by  board  issued.  h e l d u n d e r s e c t i o n 15(2)  grounds t h a t a l i c e n c e  taken  a  h e a r i n g w o u l d be  A n t h o n y , w r o t e t o t h e Water B o a r d  that  be  i n connection with each a p p l i c a t i o n a l i c e n c e or f o r renewal of a l i c e n c e .  and  shortly before  shall  the  o f May  24.  -  49 -  Mr. L i g h t b o d y e x p l a i n e d t o t h e B o a r d t h a t t h e p r o c e d u r e on NCPC's a p p l i c a t i o n was c a l l e d u n d e r S e c t i o n 15(1) o f t h e NIWA. No a c t i o n c o u l d be t a k e n u n d e r 15(2) u n t i l t h e r e g u l a t i o n s a r e e f f e c t i v e . The C h a i r m a n informed t h e Board t h a t t h e r e g u l a t i o n s would n o t be p r o m u l g a t e d u n t i l t h e N o r t h w e s t T e r r i t o r i e s , t h e I n t e r - D e p a r t m e n t a l Committee on W a t e r , and the Department o f J u s t i c e had p r o v i d e d their i n p u t and t h a t i t w o u l d p r o b a b l y be J u l y when t h e y were c o m p l e t e . ... i t was d e c i d e d t h a t t h e C h a i r m a n w o u l d s t a r t t h e p r o c e e d i n g s by e x p l a i n i n g t o t h e p u b l i c t h a t t h e h e a r i n g was n o t t o g r a n t a l i c e n c e b u t t o a s c e r t a i n f r o m t h e p u b l i c what t h e y f e e l a l i c e n c e a p p l i c a t i o n should contain. 3  On t h e same d a y t h a t  the hearing  Water B o a r d had t o i n f o r m be  issued  An  assumption  actors A  that  letter  explains reference the  at that  was t o be h e l d , t h e  NCPC t h a t  a licence could not  time.  a p p e a r s t o have been made by a l l m a j o r  the hearing  could  be h e l d  under s e c t i o n  f r o m A. B. Y a t e s t o D. Hunt on M a r c h 29, some o f t h e b a s i s t o the advice  for this  assumption.  was  1972,  In  of the Director o f Legal  following information  15(2).  provided:  We w i s h t o p r o c e s s t h e NCPC a p p l i c a t i o n f o r t h e A i s h i h i k d e v e l o p m e n t u n d e r t h e NIWA b u t i n advance o f t h e p r o m u l g a t i o n o f t h e Regulations. I n d o i n g s o , do we s t a n d on s o l i d l e g a l grounds? The L e g a l A d v i s o r e x p r e s s e d t h e o p i n i o n t h a t t h e a p p l i c a t i o n c o u l d be p r o c e s s e d and t h e l i c e n c e i s s u e d w i t h o u t t h e p r i o r making o f regulations. 4  Services,  -  50 -  B.  Notice  of the Hearing  The  notice  of the hearing  the  Yukon News i n W h i t e h o r s e on A p r i l  Canada G a z e t t e on May 16. of  the hearing  was p u b l i s h e d  by t h e B o a r d i n  28, and i n t h e  NCPC a l s o p u b l i s h e d  i n t h e Canada G a z e t t e on A p r i l  did  give  notice  not  meet a l l o f t h e r e q u i r e m e n t s o f s e c t i o n  N.I.W.A. w h i c h  i n the l o c a l  press.  a notice 1, b u t n e v e r  As a r e s u l t ,  i t did  17 o f t h e  states:  The a p p r o p r i a t e b o a r d s h a l l r e q u i r e an a p p l i c a n t f o r a l i c e n c e . . . t o g i v e n o t i c e o f such a p p l i c a t i o n a n d i n s u c h one o r more n e w s p a p e r s , i n c l u d i n g a t l e a s t one t h a t i s i n c i r c u l a t i o n w i t h i n the area a f f e c t e d . . . 5 The  fact  press  t h a t NCPC d i d n o t p u b l i s h  provided  It the  i n the l o c a l  f u r t h e r grounds f o r t h e r u l i n g  Water B o a r d t h a t with a licence  a notice  i t was w i t h o u t  jurisdiction  by t h e to proceed  hearing.  a l s o appears t h a t  the notice  t h a t was p u b l i s h e d i n  Yukon News by t h e W a t e r B o a r d d i d n o t d e s c r i b e t h e  n a t u r e and scope o f t h e p r o p o s e d development t o t h e public  very  well.  51  -  .  .  -  •,: N-©T-ItSE.  ...  !  • '  INLAND W A T E R S  NORTHERN  -'.'•/ NOTICE  OF  ACT  HEARING  PUBLIC  :  The N o r t h e r n Canada Power CommissIon has • made a w a t e r r i g h t s a p p l i c a t i o n f o r a w a t e r - H c e n c e in the A i s i h i k d r a i n a g e basin to d i v e r t a s u p p l y ' o f . 3 5 0 c . f . s . from Canyon Lake. Thep r o j e c t p r o p o s e s t h a t .waters a r e t o b e -withdrawn I n t o a 31/2 m i l e cans'] a n d d i v e r t e d t o , an underground powerhouse downstream from Canyon Lake b e f o r e b e i n g r e t u r n e d t o t h e •East A i s i h i k R i v e r a p p r o x i m a t e l y , o n e m i l e ctbove t h e c o n f l u e n c e w i t h t h e V/est A i s h i h i k . r •. A c o n t r o l s t r u c t u r e o n A i s h i h i k L a k e vils ~ s s o p r o p o s e d f o r w a t e r s t o r a g e . :  ?  be  P u b l i c h e a r i n g s o n t h i s a p p l i o a t J o n . wi11 h e l d i n the Y.V.C.A. B u i l d i n g i n White-  •horse  on  May  2itth  p.m.  7:30  at  and  at  the  fCcmmunity. Ha 11 i n H a i n e s J u n c t i o n a t 2:30 ' p . m . o n May 2 5 t h b e f o r e t h e C h a i r m a n a n d memb e r s o f t h e Yukon T e r r i t o r y Water B o a r d . T h o s e v / i s h i n g t o s p e a k on b e h a l f o r against t h i s a p p l i c a t i o n should record t h e i r i n t e n t i o n a t t h e o f f i c e o f t h e Yukon T e r r i t o r y W a t e r B o a r d b e f o r e m i d - d a y on May 1 9 t . h . B r i e f s w i l l b e presented at the hearing In their — ;, o r d e r of ' j d a j i v e r y t o t h e ' B o a r d ' s o f f i c e s , .'"". E n g i n e e r i n g r e p o r t s on t h e p r o p o s e d p r e - " J e c t  ied  and  the.application  at the V h i t e h o r s e Branch o f  Regional  Library,  and  general the  be  t h e Yukon of  b e a, c o p y  also  s t u d -  the in  the  s t o r e a t H a i n e s J u n c t i o n .An" e n v i r o n m e n t -  report  will  be available  same o f f i c e s . Bldg  !  NOTICE  OF MAY,  APRIL  28,  1972  1972  5th  o n .May v  'Room 101 /Dept. o f P u b l i c Works T<r" I n l , W h i t e h o r s e .  FJ  may  i n the o f f i c e s  Water Board. There w i l l al  itself  at  .  Lionel Brandon Chairman Yukon T e r r i t o r y Water Board.  HEARING  IN  YUKON  NEW  -  52 -  C.  Availability  o f Reports  The  Water B o a r d ' s n o t i c e m e n t i o n e d t h a t t h e e n g i n e e r i n g  r e p o r t was a v a i l a b l e a t t h e W h i t e h o r s e p u b l i c the  offices  library,  o f t h e Water B o a r d , a n d t h e g e n e r a l  at Haines J u n c t i o n ,  and t h a t t h e e n v i r o n m e n t a l  store impact  r e p o r t w o u l d be a v a i l a b l e o n May 5/i a t t h e same  O n l y a few c o p i e s available, and  o f t h e e n v i r o n m e n t a l r e p o r t were made  although  i t was o f most i n t e r e s t  i t c o u l d o n l y be s e e n a t a few p l a c e s  hours.  location.  A c o p y was n o t p r o v i d e d  t o the p u b l i c ,  during  business  a t Haines J u n c t i o n  until  May 14.  The  r e p o r t was r e c e i v e d by one g r o u p a t t e n d i n g  the  C a n a d i a n E n v i r o n m e n t a l Law R e s e a r c h F o u n d a t i o n ,  it  requested  hearing  one on May 17.  never obtained  the hearings,  Other groups a t t e n d i n g the  a copy o f t h e r e p o r t .  III.  THE WATER BOARD'S MANDATE  Since  t h e W a t e r B o a r d was a n e w l y - f o r m e d a g e n c y  with  considerable  difficult  a u t h o r i t y and i n d e p e n d e n c e ,  t o p r e d i c t how i t w o u l d d e a l w i t h  application.  after  I t was p r o b a b l y  operating  i t was  the A i s h i h i k  not expected that the  W a t e r B o a r d w o u l d a d o p t as a c t i v e a n d p o s i t i v e a r o l e as  i t d i d i n assessing  the merits  o f NCPC's  proposal.  - 53 -  The m a i n r e a s o n b e h i n d t h e W a t e r B o a r d ' s  unexpected  participation  i n t h e d e c i s i o n - m a k i n g p r o c e s s i s because  its  Mr. L e o B r a n d o n ,  Chairman,  was a b l e t o e x e r t a  strong  i n f l u e n c e on t h e a c t i o n s o f t h e Board  Unlike  t h e r e s t o f t h e members o f t h e B o a r d , Mr. B r a n d o n  did  have some c o n s i d e r a b l e  r e s o u r c e s management. personally  committed  management-oriented much n a r r o w e r expected.  as a whole.  experience i n the f i e l d o f  Mr. B r a n d o n  a p p e a r s t o have  been  t o t h e t a s k o f making t h e Board a agency,  licencing  Mr. B r a n d o n  as opposed  to f u l f i l l i n g a  and r e v i e w f u n c t i o n , d i d n o t attempt  a s was p e r h a p s  t o exceed t h e  p r o v i s i o n s o f t h e N.I.W.A., b u t r a t h e r t o e n s u r e t h a t t h e powers t h a t were l e g a l l y effectively  As  vested  i n t h e Water B o a r d were  used.  shown b e l o w ,  Mr. B r a n d o n  was n o t w i l l i n g  t o meet t h e  e x p e c t a t i o n s p l a c e d o n t h e B o a r d by s e n i o r DIAND  On May 15, Mr. Hunt, wrote the  t o Mr. B r a n d o n  A.D.M. f o r N o r t h e r n  officials.  Development,  a n d e x p r e s s e d h i s o p i n i o n o f how  Water B o a r d , a s a q u a s i - j u d i c i a l  body, s h o u l d o p e r a t e :  As we b e g i n t o s e t t h e s t a g e f o r o p e r a t i n g the Water Board, I f e e l i t i s i m p o r t a n t t o e s t a b l i s h some g e n e r a l s t r a t e g i e s and p o l i c i e s . I would ask you then t o pass a l o n g t h e f o l l o w i n g g u i d e l i n e s t o y o u r B o a r d members. The M i n i s t e r ' s l e t t e r o f a p p o i n t m e n t t o members e m p h a s i z e d t h a t t h e B o a r d i s a w a t e r licencing authority. I w o u l d n o t want anyone t o g e t t h e i m p r e s s i o n t h a t t h e B o a r d i s  - 54 a management a g e n c y r e s p o n s i b l e f o r l o n g - r a n g e water planning. T h i s p o i n t s h o u l d be q u i t e apparent from t h e f a c t t h a t t h e Board has no money and no s t a f f . Therefore, t h e Board must n o t , i n d e e d c a n n o t , c o n d u c t any s t u d i e s i n i t s own r i g h t . ... T h e s e a r e g e n e r a l g u i d e l i n e s , b u t ones w h i c h I f e e l y o u must a d h e r e , t o a t t h e p r e s e n t s t a g e o f o p e r a t i o n o f t h e Water B o a r d . 7  Brandon r e p l i e d  t h e f o l l o w i n g month, a f t e r t h e h e a r i n g s  were c o m p l e t e d , a n d c i t e d interpretation  h i s reasons f o r broader  o f t h e Board's  function:  ... I s u g g e s t t o y o u t h a t t h e s e c o n d p a r a g r a p h o f y o u r l e t t e r p l a c e s t o o n a r r o w an i n t e r p r e t a t i o n on t h e f u n c t i o n s o f t h e B o a r d and I am s u r e t h a t when y o u l o o k i n t o t h i s y o u w i l l a g r e e t h a t management d o e s i n v o l v e p l a n n i n g . ... P a r l i a m e n t h a s , i n S e c t i o n 8 ( o f t h e NIWA) made i t p l a i n t h a t t h e M i n i s t e r w i l l p r o v i d e f u n d s f o r s t a f f and c o n s u l t a n t s , and i n S e c t i o n 18 i t h a s g i v e n t h e B o a r d v e r y w i d e powers a s t o how i t manages i t s a f f a i r s and t h a t o f t h e s t a f f and a d v i s e r s p r o v i d e d t o i t b y the M i n i s t e r . 8  In h i s r e p l y , Brandon r e f e r r e d e x t e n s i v e l y p r o v i s i o n s o f t h e N.I.W.A. t o s u p p o r t  The  his interpretation.  Chairman's i n t e r p r e t a t i o n o f t h e Board's  became a k e y f a c t o r i n i m p r o v i n g of  information  by  demanding more i n f o r m a t i o n  its  to the various  own  function  t h e q u a l i t y and q u a n t i t y  made a v a i l a b l e a b o u t t h e p r o j e c t ,  consultants.  both  f r o m NCPC, and by r e t a i n i n g  IV.  THE HEARING  The  f i r s t hearing  on  the evening  afternoon  55 -  h e l d u n d e r t h e N.I.W.A. t o o k  place  o f May 24 i n W h i t e h o r s e and d u r i n g t h e  o f May 2 5 i n H a i n e s J u n c t i o n .  a t t r a c t e d much a t t e n t i o n f r o m b o t h l o c a l  The h e a r i n g and n o n - l o c a l  g r o u p s , and many o f t h e s u b m i s s i o n s were c r i t i c a l o f the  a d e q u a c y and a v a i l a b i l i t y  project  and a b o u t t h e h e a r i n g  of information  about t h e  itself.  I n h i s o p e n i n g r e m a r k s , Mr. B r a n d o n e x p l a i n e d  that:  T h i s m e e t i n g i s c a l l e d p u r s u a n t t o S e c t i o n 15(1) and t h e p u r p o s e o f t h i s h e a r i n g i s t o p r o v i d e t h e p u b l i c w i t h t h e o p p o r t u n i t y t o have e x p l a i n e d t o them t h e p r o p o s e d a p p l i c a t i o n o f t h e NCPC f o r a h y d r o - e l e c t r i c development a t A i s h i h i k R i v e r and f o r t h e r e c e i v i n g o f b r i e f s and l i s t e n i n g t o p e r s o n s and spokesmen f o r i n t e r e s t e d g r o u p s i n t h i s p r o p o s e d h y d r o - e l e c t r i c scheme. The B o a r d w i l l n o t , a t t h i s t i m e , d e c i d e on t h e i s s u i n g o f any c o n s t r u c t i o n l i c e n c e , b e c a u s e t h e proposed a p p l i c a t i o n has p r e c e d e d t h e p r o m u l g a t i o n o f r e g u l a t i o n s by t h e G o v e r n o r i n C o u n c i l , w h i c h i s r e q u i r e d under S e c t i o n 2 o f t h i s A c t . 9  It  a p p e a r s t h a t b o t h NCPC and t h e Water B o a r d  hearing  t o be a " p u b l i c s e r v i c e " i n f o r m a t i o n  probably  that d i d occur.  NCPC G e n e r a l  the outset had  Manager, Mr. J o h n Lowe, e x p l a i n e d a t  of the hearing  taken place  a very  h e a r i n g and  d i d n o t a n t i c i p a t e t h e amount o f f e e d b a c k and  criticism  The  saw t h e  that  sufficient investigations  t o d e t e r m i n e t h a t t h e A i s h i h i k w o u l d be  economic p r o j e c t :  -  56  -  Our s t u d i e s i n d i c a t e d t h a t c o n s t r u c t i o n o f t h e A i s h i h i k now w i l l e n a b l e t h e C o m m i s s i o n to hold i t s present wholesale rates i n W h i t e h o r s e , w h i l e any o t h e r p r o v i s i o n w i l l l i k e l y r e s u l t i n an i n c r e a s e i n t h e c o s t o f power t o W h i t e h o r s e a r e a c o n s u m e r s . 10 Mr.  Lowe a l s o p o i n t e d  to begin raised  promptly,  out  that  electrical  i f c o n s t r u c t i o n was r a t e s w o u l d have t o  not be  unnecessarily:  A delay i n g r a n t i n g a l i c e n c e f o r the A i s h i h i k D e v e l o p m e n t i s n o t w i t h o u t c o n s e q u e n c e , and i t must be p o i n t e d o u t how s i g n i f i c a n t a d e l a y o f one y e a r w o u l d be. Such a d e l a y would r e s u l t i n an i n c r e a s e d o u t l a y o f o v e r $2,000,000 w h i c h w o u l d n o t o t h e r w i s e be made, and w h i c h o u t l a y w o u l d have t o be b o r n e by power c o n s u m e r s on the Whitehorse area g r i d . The A i s h i h i k R i v e r has been s t u d i e d r e l a t i v e t o i t s h y d r o e l e c t r i c p o t e n t i a l f o r the l a s t twenty y e a r s . The scheme as p r e s e n t l y e n v i s a g e d was l o o k e d a t i n d e t a i l i n 1971. I t i s r e g r e t t a b l e that t h i s process a p p e a r s t o be a r u s h , however, I must p o i n t o u t t h a t t h e C o m m i s s i o n made a p p l i c a t i o n f o r a w a t e r power l i c e n c e on t h e A i s h i h i k R i v e r i n A u g u s t 1971. 11  Mr. well was  Lowe's s t a t e m e n t s prepared granted,  rates,  but  also  to begin  the  emphasized  be  l i c e n c e was  increase. this  impression  construction  t h e r e would not  i f the  would have t o  left  Mr.  point,  and  t h a t NCPC  that  i f a licence  any  increase  in  t o be  delayed,  then  Mooney, t h e and  electrical  District  mentioned t h a t  $200 p e r  family  f o r one  year's  rates Manager,  "the  t h a t h o u s e h o l d e r s o f W h i t e h o r s e w o u l d have t o pay approximately  was  portion  is  delay".  12  -  The  first  Canadian was  brief, Society  strongly  statement.  57  -  s u b m i t t e d by P r o f e s s o r N e l s o n o f of W i l d l i f e  critical  and  Fisheries  Biologists,  of the environmental  P r o f e s s o r Nelson  stressed  the  impact  the f a c t  that  any  a c c e p t a n c e o f t h e r e p o r t w o u l d c r e a t e an u n f o r t u n a t e p r e c e d e n t , and  t h a t NCPC *s s t a t e m e n t s  r e g a r d i n g the  c o s t s o f d e l a y p l a c e d an u n f a i r b u r d e n to out  accept the environmental r e p o r t . NCPC's f a i l u r e  which and  t o devote  reminded  t h e Commission  The  adequate  c o u l d have b e e n i n i t i a t e d  the Water brief  year  Board  also pointed  time to the  a full  that  on  study,  previously,  the Act s t a t e s  quite  clearly  t h a t t h e onus i s p l a c e d on  provide  t h e n e c e s s a r y i n f o r m a t i o n t o e n a b l e t h e Water  to  the a p p l i c a n t  Anthony, r e p r e s e n t i n g the Canadian  Law  Research  critical  statement,  the procedures undertaken  by Mr.  the  Department o f the Environment,  Mr.  Kupka p o i n t e d o u t t h e p o t e n t i a l the p r o j e c t  on  local  fisheries  -  f o r the h e a r i n g .  Kupka  Fisheries negative  and  also  concentrated  the a p p l i c a t i o n  the n o t i c e  delivered  t h a t was  but which  to hear  as t h e y c o n c e r n e d  A t h i r d m a j o r b r i e f was  that:  Environmental  Foundation, submitted a b r i e f  o f the impact  particularly  of  Board  evaluate the m e r i t s of a p r o p o s a l .  Mr.  on  to  from  Services. effects  recommended  -  58  -  The F i s h e r i e s S e r v i c e p o s i t i o n i s t h a t a w a t e r l i c e n c e be h e l d i n a b e y a n c e , o r as i t t u r n s o u t t h e r e c o m m e n d a t i o n t o t h e M i n i s t e r be h e l d i n a b e y a n c e u n t i l s u c h t i m e as t h e e n v i r o n m e n t a l c o n s e q u e n c e s c a n be a s c e r t a i n e d . ... I t i s recommended t h a t t h e B o a r d e x e r t a l l p o s s i b l e i n f l u e n c e i n the f u t u r e to o b t a i n as e a r l y w a r n i n g as p o s s i b l e o f f u t u r e power d e v e l o p m e n t s . . . i n o r d e r t h a t t h e r e i s maximum time a v a i l a b l e to conduct environmental impact studies. 13 Mr.  Kupka a l s o i n f o r m e d  S e r v i c e w o u l d be  lake  and  l e v e l s be  completed.  Briefs  that until  the  Fisheries  studies over  p r o j e c t on  final  reserved  the  until  after  the  by  two  local  groups, the  Yukon H i s t o r i c a l  d e c i s i o n about the  emotional presentation, requested  i n order  extensive  impact o f  further studies could  Society  the  the  the  decisions  on  s t u d i e s had  been  1 4  and  any  the  that  recommended t h a t any  presented  Society  Board  c a r r y i n g out  next year to assess fisheries,  the  to  Mr.  Society,  Yukon both  Conservation recommended  l i c e n c e should  be  be  During  completed.  Brine  that there  be  "more i n t e l l i g e n t l y  of  the  postponed an  Conservation  a moratorium of d i v i n e the  two  answers  years to  15 numerous as  Mr.  Brine  yet  unanswered  a l s o r a i s e d the  questions".  question  development should  take p l a c e  this  Boyd, a l o c a l  question,  B o a r d who that:  later  Mr.  replaced  Mr.  of whether  at a l l .  any  In response  appointee to the  B r a n d o n as  Chairman,  to Water stated  -  59  -  ... I a c c e p t t h e f a c t t h a t we n e e d power and I a l s o b e l i e v e t h a t where e v e r we go t o g e t t h e power, we c a n a c c e p t t h e f a c t t h a t we're going to get i t ; but to accept the f a c t t h a t we're g o i n g t o do w i t h o u t i t , t h a t ' s a n o t h e r thing. We n e e d t h e power, and we a r e g o i n g t o g e t . i t . . . Where e v e r we go f o r t h e power, and as I s a y , knowing t h e Yukon, A i s h i h i k l o o k s l i k e a p r e t t y f a i r s p o t , I'm e x p r e s s i n g my own o p i n i o n NOW. (sic) 16. Mr.  Boyd had  a p p a r e n t l y made up  the p u b l i c of that f a c t  The  Yukon M i n e O p e r a t o r s  Institute all  before  o f Canada, and  submitted  During  the  informed  t h e h e a r i n g was  over.  A s s o c i a t i o n , the  Haines J u n c t i o n , the C h i e f Ray  Band, s t a t e d i n v e r y  Engineering  t h e W h i t e h o r s e Chamber o f  s h o r t b r i e f s which supported  second h a l f  expressed.  h i s mind and  of the  views of Jackson explicit  the  development.  h e a r i n g , w h i c h was local of the  Commerce,  held i n  n a t i v e g r o u p s were Champagne-Aishihik  terms h i s o p p o s i t i o n t o  the p r o j e c t : L e t me s t a t e now, we a r e n o t r e l i n q u i s h i n g o f our r i g h t s to l a n d c l a i m s w i t h o u t a settlement.  any  We w i l l r e q u i r e c o m p e n s a t i o n where n e c e s s a r y or f o r necessary r e c t i f i c a t i o n to a p a r t i c u l a r p r o b l e m o r we may r e q u i r e b o t h . Therefore, i t may n o t be as c h e a p power as you may h a v e anticipated. We a r e n o t i n f u l l - a g r e e m e n t t o t h e c o n s t r u c t i o n o f t h e p r o j e c t . T h e r e f o r e we w i l l n o t g i v e o u r consent a t t h i s time. 12  - 60 V.  SUMMARY  Contrary without  to previous legal  following  expectations,  jurisdiction  t h e Water B o a r d was  t o i s s u e a water  t h e May, 1972 h e a r i n g .  licence  I t appears t h a t t h e  Water B o a r d d i d n o t make i t s d e c i s i o n t o h o l d t h e h e a r i n g for  p u b l i c information purposes u n t i l  the  hearing  took  in  to hold  the notice o f the hearing  o f , and a d e q u a c y o f i n f o r m a t i o n  the engineering  t h a t both  shortly  and e n v i r o n m e n t a l  and t h e contained  reports, indicate  NCPC and t h e W a t e r B o a r d were n o t w e l l  a public  A combination preparations  before  place.  Problems c o n c e r n i n g availability  very  prepared  hearing.  o f t h e v a r i o u s problems a f f e c t i n g t h e f o r the f i r s t  hearing  a r e summarized  following explanation  o f circumstances  the  Federation,  Canadian W i l d l i f e  f r o m R. C. P a s s m o r e , E x e c u t i v e  i n the  e x p e r i e n c e d by  contained  i na letter  D i r e c t o r o f t h e C.W.F.  t o Mr. Lowe o f NCPC on May 30: In view o f t h e time a v a i l a b l e f o r i t s c o m p l e t i o n , i t i s n o t s u r p r i s i n g t h a t t h e above-noted "Impact S t a t e m e n t " i s q u i t e s u p e r f i c i a l a n d p e r m i t s c o n c l u s i o n s which a r e , i n t h e main, b o t h t e n t a t i v e and h i g h l y s p e c u l a t i v e . Even more d i s a p p o i n t i n g , f r o m t h e s t a n d p o i n t o f i t s a d e q u a c y a s an i n f o r m a t i o n p a c k a g e on w h i c h to base p u b l i c h e a r i n g s , i s i t s f a i l u r e t o p r o v i d e b a c k g r o u n d on c u r r e n t and p r o j e c t e d a s s e s s m e n t o f a l t e r n a t e means o f m e e t i n g p r o j e c t e d needs f o r energy. I n t h e absence o f such i n f o r m a t i o n , and i n view o f t h e extreme  - 61 shortage of time i n which to o b t a i n i t , t h e C a n a d i a n W i l d l i f e F e d e r a t i o n was u n a b l e to prepare a meaningful statement to present a t t h e h e a r i n g s on t h e A i s h i h i k p r o j e c t . 18  The  first  hearing  t h e p u b l i c , and  a t t r a c t e d c o n s i d e r a b l e a t t e n t i o n from  a number o f p e r s o n s a t t e n d i n g  strongly questioned been s u p p l i e d by  the  adequacy o f  NCPC t o s u p p o r t  the  information  hearing  that  i t s application.  had  -  62  CHAPTER  THREE  REFERENCES AND  NOTES  1.  B. R o b i n s o n , D e p u t y M i n i s t e r , DIAND, and C h a i r m a n o f NCPC t o J . C h r e t i e n , M i n i s t e r o f I n d i a n A f f a i r s and N o r t h e r n D e v e l o p m e n t , 9 M a r c h 1972, i n R e p o r t on A i s h i h i k , r e f . 4.12.  2.  Northern  3.  Yukon T e r r i t o r y Water B o a r d , " M i n u t e s o f M e e t i n g No. 3", 24 t o 26 May 1972, p.1,2.  4.  A. B. Y a t e s , D i r e c t o r N o r t h e r n E c o n o m i d B r a n c h t o D. Hunt, 29 M a r c h 1972.  5.  Northern  6.  W. McLeod, Water Management i n t h e C a n a d i a n N o r t h (Ottawa: C a n a d i a n A r c t i c R e s o u r c e s Committee, 1 9 7 7 ) , p . 21.  7.  D. Hunt  8.  L. B r a n d o n t o D. Hunt,  I n l a n d Waters A c t , S . 1 5 ( l ) , ( 2 ) .  Development  I n l a n d W a t e r s A c t , S.17.  t o L . B r a n d o n , 15 May 1972. 12 J u n e 1972.  .9.  L. Brandon, G e n e r a l H e a r i n g T r a n s c r i p t s , p. 1, 2 .  10.  J . M. Lowe, I b i d . , p . 5 .  11.  I b i d . , p.6.  12.  F. Mooney, I b i d . , p . 9 .  13.  K. Kupka,  14.  Ibid.  15.  M. B r i n e , p.40.  16.  B. Boyd, Member,  17.  R. J a c k s o n , C h i e f , C h a m p a g n e - A i s h i h i k Band, G e n e r a l H e a r i n g T r a n s c r i p t , 25 May 1972, H a i n e s J u n c t i o n , Y.T., p . 1 1 .  18.  R. C. P a s s m o r e , E x e c u t i v e D i r e c t o r , C a n a d i a n W i l d l i f e F e d e r a t i o n t o J . M. Lowe, 3 0 May 1972. The " P r e l i m i n a r y E n v i r o n m e n t a l Impact S t a t e m e n t " was n o t i n t e n d e d by i t s a u t h o r s t o be an i n f o r m a t i o n p a c k a g e on w h i c h t o "base p u b l i c h e a r i n g s " as Mr. Passmore implied. By v i r t u e o f t h e p a u c i t y o f a d d i t i o n a l i n f o r m a t i o n , t h e i m p a c t s t a t e m e n t m i g h t have r e c e i v e d an u n f a i r b u r d e n .  Fisheries  and M a r i n e S e r v i c e ,  P r e s i d e n t , Yukon Yukon  24 May 1972,  I b i d . , p.38.  Conseration Society,  T e r r i t o r y Water  Ibid.,  B o a r d , I b i d , p.41.  -  63  -  CHAPTER FOUR OUTCOME OF THE FIRST HEARING AND PREPARATIONS RE-APPLICATION - MAY 1972 t o JANUARY 1973 This  chapter  explains  and  describes  for  a water l i c e n c e .  I.  RECOMMENDATION OF  On  May  26,  one  the  day  the  actions  THE  outcome o f  the  t h a t NCPC t o o k t o  The  a f t e r the  l e t t e r was  hearing  reapply  WATER BOARD hearing  was  Water B o a r d made i t s . r e c o m m e n d a t i o n by Minister.  first  FOR  very  completed,  letter  to  the  the  c l e a r i n communicating  Board's p o s i t i o n : 1.  The B o a r d c o n s i d e r s t h a t t h e r e i s a r e q u i r e m e n t f o r more power i n t h e s o u t h e r n Yukon i n t h e v e r y n e a r f u t u r e . The proposed development o f the E a s t A i s h i h i k R i v e r f o r h y d r o e l e c t r i c power a p p e a r s t o have c o n s i d e r a b l e m e r i t .  2.  The p r o p o s e d d e v e l o p m e n t o f E a s t A i s h i h i k d r a i n a g e b a s i n may have e c o l o g i c a l i m p a c t s . The d e v e l o p m e n t w i l l a l s o have some s o c i o l o g i c a l and a e s t h e t i c e f f e c t s . Present information i s inadequate to evaluate these effects.  3.  However, i t a p p e a r s t h a t t h e s e i m p a c t s and e f f e c t s c a n be k e p t w i t h i n a c c e p t a b l e limits i f f u l l s t u d i e s a r e c a r r i e d o u t and i f t h e f i n d i n g s from t h e s e s t u d i e s are i n c o r p o r a t e d i n t o the design l i m i t s which w i l l provide reasonable c o n t r o l s .  4.  Schedule B i s attached to t h i s l e t t e r which d e f i n e s t h e s t u d i e s w h i c h must be done. T h e s e s t u d i e s a r e o f t h e t y p e w h i c h w o u l d be r e q u i r e d i f the D r a f t R e g u l a t i o n s which t h e B o a r d a g r e e d t o a t i t s m e e t i n g on M a r c h 9 t h were i n e f f e c t . No c o n d i t i o n a l commitment c a n be made by t h e B o a r d u n t i l t h e r e g u l a t i o n s a r e i n e f f e c t and u n t i l t h e s t u d i e s are s u f f i c i e n t l y advanced to s a t i s f y the Board.  the  5.  The  contents of Schedule  Bowden r e p o r t s information considered  In view  -  The B o a r d r e c o g n i z e s t h e u r g e n c y o f f u r t h e r power d e v e l o p m e n t and t h e r e f o r e t h e B o a r d recommends t h a t t h e s t u d i e s i n t h e a t t a c h e d S c h e d u l e B be commenced immediately. 1  a r e a s t h a t were a l r e a d y  B essentially identified  as n e e d i n g  requirements unreasonable  of l a t e r  the itemized and  64  covered  i n t h e C r i p p e n and  f u r t h e r study. could  or  those  This  not, t h e r e f o r e ,  list  Pearse  of  have been  excessive.  developments,  t h e most s i g n i f i c a n t  requirements  involved  further environmental  studies.  the The  of  "system  study"  Board  required  NCPC t o : 5.  13.  c a r r y out a d e t a i l e d study of the i n t e g r a t e d o p e r a t i o n s o f A i s h i h i k and W h i t e h o r s e Rapids p l a n t s s u c h t h a t optimum use o f t h e p o t e n t i a l o f e a c h p l a n t c a n be d e t e r m i n e d . t h a t i n c o n s u l t a t i o n w i t h the Board the f o l l o w i n g d e t a i l e d s t u d i e s be u n d e r t a k e n as i d e n t i f i e d i n t h e p r e l i m i n a r y e n v i r o n m e n t a l impact statement. a) w i t h r e l a t i o n t o t h e f l o w c o n d i t i o n s o v e r t h e f a l l s a p e r c e p t i o n and a t t i t u d e s t u d y ; b) an i n v e s t i g a t i o n o f t h e a n i m a l e c o l o g y i n t h e h a b i t a t s t o be m o d i f i e d by t h e development; c) an i n v e s t i g a t i o n o f t h e b o t a n y and p l a n t e c o l o g y o f a l l a r e a s a f f e c t e d by t h e development; d). a s u r v e y and s a l v a g e o f a c h a e o l o g i c a l m a t e r i a l i n s i t e s l o c a t e d w i t h i n the p r o p o s e d c o n s t r u c t i o n a r e a s and t h o s e areas of p o s s i b l e f l o o d i n g . 2  -  65 -  The  Minister,  J . Chretien,  14,  1972 and gave h i s a c c e p t a n c e o f t h e Water  recommendations.  r e p l i e d t o B r a n d o n on J u l y  A copy o f t h i s  Board's  l e t t e r was a l s o  sent  t o NCPC: I a c c e p t t h e recommendation o f t h e Board w i t h r e s p e c t t o t h e f u r t h e r s t u d i e s r e q u i r e d t o be c a r r i e d o u t p r i o r t o the i s s u e o f the water licence. ... F o l l o w i n g c o m p l e t i o n o f t h e s t u d i e s and o f any f u r t h e r work a r i s i n g f r o m them and i n a c c o r d a n c e w i t h t h e A c t and t h e r e g u l a t i o n s f o l l o w i n g t h e i r p r o m u l g a t i o n I s h a l l be p r e p a r e d t o approve t h e i s s u e o f the water l i c e n c e f o r t h i s p r o j e c t s u b j e c t t o s u c h c o n d i t i o n s a s may t h e n be e v i d e n t . 3  NCPC was l e f t , would o b t a i n order and As  then, with  a water  to obtain  a strong  assurance that i t  l i c e n c e , but not a guarantee.  a l i c e n c e , NCPC had t o c o m p l e t e  surveys l i s t e d f a r as t h e Board  by t h e Water B o a r d itself  was  In  the studies  i n " S c h e d u l e B".  concerned:  Members f e l t t h a t u n t i l s t u d i e s were c a r r i e d o u t they c o u l d n o t judge t h e r e s u l t s o f a second h e a r i n g and t h a t NCPC w o u l d have t o d e c i d e whether t h e c o n t r o l s imposed as a r e s u l t o f t h e s e s t u d i e s w o u l d make t h e p r o j e c t u n e c o n o m i c . The g e n e r a l f e e l i n g was t h a t NCPC w o u l d r e a d i l y a c c e p t t h e c o n d i t i o n s , would r e a d i l y c a r r y o u t t h e s t u d i e s and would c o n s e q u e n t l y e n c o u n t e r l i t t l e o p p o s i t i o n a t a f u t u r e h e a r i n g under S.15(2). Members a g r e e d , however, t h a t t h e y c o u l d n o t make a f i r m commitment u n t i l t h e r e g u l a t i o n s were promulgated. 4  Evidently to grant  t h e Water B o a r d was n o t i n c l i n e d a l i c e n c e , once i t had t h e l e g a l  to refuse jurisdiction,  -  66  -  nor  to.make t h e l i c e n c e  The  Water B o a r d d i d a p p e a r , however, t o have a s t r o n g  interest out  i n ensuring  correctly,  d e c i s i o n s would  The  a particularly  that the e n t i r e  process  a s i t was aware o f t h e f a c t s e t important  precedents  B o a r d a l s o a p p e a r s t o have t a k e n  r e m a r k s made d u r i n g associated with licence.  s t r i n g e n t one.  the f i r s t  any d e l a y s  In a l e t t e r  carried  that i t s  f o r the future.  exception  hearing  t o NCPC's  about t h e c o s t s  i n the issuance  t o Mr. Y a t e s ,  was  o f a water  D i r e c t o r of the Northern  E c o n o m i c D e v e l o p m e n t B r a n c h o f DIAND, on J u n e 5, 1972, Mr.  Brandon mentioned  that:  The B o a r d was c o n c e r n e d t h a t t h e N.C.P.C. p r e s e n t e d c o s t s a s a c o n s e q u e n c e o f any d e l a y i n c o n s t r u c t i o n a t t h e p u b l i c hearings which were i n s u f f i c i e n t l y s u p p o r t e d b y f a c t u a l e c o n o m i c a n a l y s i s and w h i c h r e a l l y r e v e a l s to t h e Board inadequate p l a n n i n g . 5  II.  NCPC'S REACTION  NCPC was v e r y d i s a p p o i n t e d w i t h which i t entered enable next  expecting  i t t o begin  few weeks.  t h e outcome o f t h e h e a r i n g ,  to obtain a licence  construction of the project i nthe  From NCPC's p o i n t o f v i e w , t h e i n f o r m a t i o n  t h a t was a v a i l a b l e was s u f f i c i e n t  Written  to grant  communications exchanged d u r i n g  t h a t NCPC's i n i t i a l of  t h a t would  a water  t h a t time i n d i c a t e  r e a c t i o n was t o q u e s t i o n  t h e Board r a t h e r than  cooperate  with  licence.  the authority  the Board's  -  67 -  requirements, which the M i n i s t e r  had a l r e a d y  accepted.  On J u n e 16, 1972, N C P C s G e n e r a l Manager, Mr. J . Lowe, 1  w r o t e t o t h e D e p u t y M i n i s t e r , Mr. R o b i n s o n , and explained  that:  My u n d e r s t a n d i n g o f t h e Water B o a r d ' s f u n c t i o n a t t h e p r e s e n t s t a g e was t h a t i t was t o h a v e r e l a t e d t o t h e recommendation f o r a water use licence; i t i s therefore s u r p r i s i n g that the B o a r d a s k s f o r f u r t h e r s t u d i e s on m a t t e r s w h i c h a r e c o v e r e d i n t h e E n g i n e e r i n g and E c o l o g i c a l B r i e f s s u b m i t t e d by t h e C o m m i s s i o n . 6 This  statement  a p p e a r s t o d i s p l a y an a t t i t u d e h e l d by  NCPC management t h a t  t h e W a t e r B o a r d was t o  simply  r e v i e w and comment on t h e l i c e n c e a p p l i c a t i o n , and t h a t it  was i m p r o p e r l y  by  requesting  the  interfering  w i t h NCPC's  additional information.  Board's o p i n i o n  that  In reference  the information  i n a d e q u a t e , t h e memorandum  responsibilities to  a v a i l a b l e was  a l s o comments t h a t  "this  point 7  is  d e b a t a b l e a s f a r as an i m m e d i a t e  start  NCPC a l s o e n d e a v o u r e d t o have t h e w a t e r by  some l e g a l means o t h e r  of  t h e N.I.W.A.  for  i s concerned".  licence  than through s e c t i o n  On J u n e 13, NCPC o f f e r e d a  an a l t e r n a t i v e p r o c e d u r e t o Mr. R o b i n s o n  Minister's  issued 15 (.2).  proposal f o r the  attention.  The M i n i s t e r c o u l d recommend t h a t a l i c e n c e be i s s u e d now, e i t h e r u n d e r t h e DWPA o r u n d e r S e c t i o n 26 o f t h e NIWAct and a t t h e same t i m e d i r e c t t h e C o m m i s s i o n t o p a y c a r e f u l and p a r t i c u l a r a t t e n t i o n t o those matters m e n t i o n e d i n t h e Yukon Water B o a r d ' s recommendation. 8  -  68  The  proposal  and  no s u c h d e c i s i o n was made.  l e g a l means to  f o r obtaining  that  SCHEDULE  immediately  i t was n o t t o r e c e i v e  t o complete the p r o j e c t  diesel  following  a water  the hearing.  l i c e n c e to permit  o f t h e p r o j e c t , NCPC a n t i c i p a t e d t h a t i t  w o u l d have t o p a y $2 m i l l i o n  extra  to i n s t a l l  g e n e r a t o r s t o meet t h e a n t i c i p a t e d  delays  i n the s t a r t  of construction  t o c a u s e an e f f e c t i v e d e l a y  to begin construction  as q u i c k l y  large  incremental  increases  local  m i n e s were imminent.  requirements.  o f almost a f u l l  f a c t o r which c o n t r i b u t e d  thought  y e a r , due t o  season.  t o NCPC's p e r c e i v e d a s p o s s i b l e was  in electrical  demand  As t h e S e c r e t a r y  B o a r d , Mr. N. Simmonds, r e p o r t e d  and o p e r a t e  were a l s o  l o s s o f t h e summer 1972 c o n s t r u c t i o n  Another  20,  acceptable  t i m e t o meet t h e w i n t e r demands o f 1973-4 i f a w a t e r  construction  the  No a l t e r n a t i v e ,  i t w o u l d be a b l e  l i c e n c e was i s s u e d  Any  to the M i n i s t e r ,  a w a t e r l i c e n c e was a v a i l a b l e  PROPOSED CONSTRUCTION  NCPC f e l t  If  not submitted  NCPC.  III.  in  was a p p a r e n t l y  -  need  that from  t o t h e Water  t o t h e B o a r d on June  1972: New I m p e r i a l ' s new u n d e r g r o u n d o p e r a t i o n w i l l c e r t a i n l y r e q u i r e more power t h a n i t s p r e v i o u s o p e n - p i t method. T h i s s u r g e i n demand p l u s A n v i l ' s a n t i c i p a t e d purchase o f e l e c t r i c shovels a c c o u n t s f o r an a d d i t i o n a l l o a d o f between 7 and 9 MW. I t c a n be s a f e l y c o n c l u d e d t h a t t h i s l a r g e l y u n f o r e s e e n demand i s a d o m i n a n t  -  69  -  f a c t o r b e h i n d t h e NCPC's d e s i r e c o n s t r u c t i o n work i m m e d i a t e l y .  Dr.  Hollingshead,  and  who  later  who  was  the  became a member o f  of  the w i n t e r of  the Water able  1973-4.  a Water Board m e e t i n g h e l d  commence  C o n t r o l l e r o f Water  q u e s t i o n e d w h e t h e r NCPC w o u l d be p r o j e c t by  to 9  on  As May  Board,  to complete stated 26,  Rights  the  i n the  minutes  1972:  Mr. H o l l i n g s h e a d s a i d t h a t t h e r e was an e v e n c h a n c e t h a t NCPC w o u l d h a v e t o s p e n d t h i s money anyway b e c a u s e he t h o u g h t t h a t t h e i r f o r e c a s t c o n s t r u c t i o n p r o g r a m was o p t i m i s t i c . ... Members... a g r e e d t h a t as no p r e l i m i n a r y b u y i n g had been done and no t e n d e r s had been i s s u e d i t was p o s s i b l e t h a t NCPC were b e i n g excessively optimistic. 10 Mr.  Simmonds a l s o r e p o r t e d  on  June 13  that:  The e n g i n e e r s on t h e W a t e r B o a r d c o n s i d e r e d t h a t a c o n s t r u c t i o n p r o g r a m i n w h i c h two months a r e so c r i t i c a l c o u l d w e l l be u n r e a l i s t i c and be i l l p r e p a r e d t o meet unexpected setbacks. ... The m a j o r i t y o f t h e B o a r d f e l t t h a t e v e n i f a l i c e n c e were i s s u e d a t t h i s t i m e , NCPC w o u l d be u n a b l e t o meet demand on t h e w i n t e r o f 1973. 11  Considering design  of  the  been i s s u e d , very and  the  stage of development of  p r o j e c t and i t m i g h t be  the  concluded  well prepared to begin complete  i t i n the  fact  that  the  t e n d e r s had  t h a t NCPC was  construction  of  t i m e frame p r o p o s e d .  t h e W a t e r B o a r d a p p e a r t o have r e c o g n i z e d quite readily.  engineering  the  not project  Members  this  not  of  possibility  IV.  STUDY DELAY?  The N.I«W.A. R e g u l a t i o n s were promulgated 14, 1972, and immediately  f o l l o w i n g t h a t date NCPC  c o u l d have a p p l i e d f o r a water l i c e n c e . however, completed  on September  NCPC had n o t ,  the necessary; s t u d i e s and surveys  o u t l i n e d i n "Schedule B" by t h i s time.  In f a c t , t h e  environmental surveys d i d not begin u n t i l September 30-, six  days a f t e r the Regulations: were, promulgated, and  f o u r months a f t e r the Water Board recommended they ...heundertaken.  Mr. Brandon l a t e r r e p o r t e d t o .Mr.. Hunt....that; Summer 1972., The N.C.P.C. f a i l e d t o proceed w i t h r e q u i r e d f i e l d s t u d i e s and were slow, i n a l l f u r t h e r d e s i g n work, 14 September, 1972 The Regulations, were promulgated under t h e Northern I n l a n d Waters, Act and therefore^ a h e a r i n g c o u l d have been h e l d immediately a f t e r t h a t date i n o r d e r t o recommend on a l i c e n c e . However, the N,C,P,C, had not pursued the s t u d i e s s u f f i c i e n t l y and were not ready. 12 1  It i s d i f f i c u l t of  t o e x p l a i n why NCPC chose t h i s c o u r s e  a c t i o n , s i n c e any d e l a y s i n completing the necessary  s t u d i e s would o n l y have caused d e l a y s i n r e c e i v i n g a water l i c e n c e .  NCPC s a c t i o n s may have, been the r e s u l t o f a. c o n t i n u e d 1  misunderstanding o f the Water Board's In  jurisdiction.  a l e t t e r t o Mr. Robinson o f DIAND on June 16, 19.72,  -  71 -  Mr.  Lowe, NCPC's G e n e r a l Manager, q u e s t i o n e d  the  Board had j u r i s d i c t i o n  information pertaining  - particularly to land  Mr.  - and f e l t  an i n o r d i n a t e  therefore  additional  with respect  resources  s t u d i e s would r e q u i r e money, and s h o u l d  to request  n o t be  whether  to  questions  that  some o f t h e  amount o f t i m e and required.  Lowe made t h e f o l l o w i n g comments a b o u t some o f t h e  items l i s t e d 5..  i n " S c h e d u l e B":  The B o a r d r e q u e s t s a d e t a i l e d s t u d y o f t h e i n t e g r a t e d o p e r a t i o n s o f A i s h i h i k and W h i t e h o r s e p l a n t s s u c h t h a t optimum u s e o f t h e p o t e n t i a l o f e a c h p l a n t c a n be d e t e r m i n e d . A d e t a i l e d study... w i l l involve a very h e a v y e x p e n d i t u r e and c o n s i d e r a b l e t i m e . M o r e o v e r , t h i s c o s t c a n n o t be j u s t i f i e d a t t h i s time u n t i l a u t h o r i t y t o b u i l d A i s h i h i k has been r e c e i v e d . ...  8.  T h i s requests the d e t a i l e d design o f each s t r u c t u r e t r a n s m i s s i o n l i n e and e x c a v a t i o n . ... We w o u l d n o t e t h a t t h i s s h o u l d n o t be a requirement t o a l i c e n c e , because o f c o s t and timing.  9.  The B o a r d recommends a p l a n s h o w i n g t h e location of a l l structures, excavations, fill a r e a s , a c c e s s r o a d s , t r a n s m i s s i o n l i n e s and camp f a c i l i t i e s . We a r e o f t h e o p i n i o n t h a t t h i s r e q u e s t t o t h e l a n d u s e r e g u l a t i o n s and n o t t h e I n l a n d W a t e r s A c t . ...  12.  pertains  This concerns a r e p o r t f o r the p r o t e c t i o n or removal o r r e s t o r a t i o n o f b u i l d i n g s i n Aishihik Village. T h i s i n f o r m a t i o n has been presented- as p a r t o f t h e C o m m i s s i o n ' s B r i e f s and r e p o r t s ; i f i t i s c o n s i d e r e d t h a t such a r e p o r t i s p a r t o f t h e Water B o a r d ' s j u r i s d i c t i o n and n o t L a n d U s e , s u c h i n f o r m a t i o n c a n be g a t h e r e d i n t o an i n d i v i d u a l r e p o r t . ...  13.  c) An i n v e s t i g a t i o n o f t h e b o t a n y and e c o l o g y o f a l l a r e a s a f f e c t e d by t h e development.  plant  C o n s u l t a t i o n w i t h t h e b o t a n i c a l and p l a n t g r o u p s i n t e r e s t e d was s t a r t e d e a r l i e r t h i s y e a r and i s t r e a t e d i n t h e E n v i r o n m e n t a l Impact S t a t e m e n t . T h i s a s p e c t , however, a p p e a r s t o be L a n d b a s e d and t h e r e f o r e n o t w i t h i n t h e j u r i s d i c t i o n o f t h e Water B o a r d .  Mr.  Lowe a p p a r e n t l y  opportunity changed;  felt  that  a v a i l a b l e t o have t h e  this  consideration  c a u s e b e h i n d NCPC's d e c i s i o n with  the Water Board's  Given the t o Mr. on  could  contents of  be  25,  1972,  very  was  some  Water B o a r d ' s  may  have b e e n an  not  to  comply  a letter  sent  decision  important  initially  the  from the  Commission  i t would appear t h a t  little  still  requests.  Robinson, Chairman o f  July  there  13  cause f o r  by  Minister f o r NCPC,  that  time  there  uncertainty:  Much o f t h e i n f o r m a t i o n e x p e c t e d f r o m t h e s t u d i e s recommended by t h e B o a r d i s . . . n e c e s s a r y b e f o r e a l i c e n c e can be i s s u e d , so t h a t t h e n e c e s s a r y c o n d i t i o n s c a n be attached to i t . ... I w i l l be p r e p a r e d t o i s s u e t h e N o r t h e r n Canada Power C o m m i s s i o n a w a t e r l i c e n c e f o r t h e A i s h i h i k h y d r o - e l e c t r i c p r o j e c t when t h e r e q u i r e m e n t s o f t h e Water B o a r d , as i n d i c a t e d by t h e i r r e c o m m e n d a t i o n s and a t t a c h e d s c h e d u l e have been met. 14  Written  communications  between Mr. Yukon, and  F. Mr.  exchanged d u r i n g  August  1972  Mooney, NCPC's R e g i o n a l Manager f o r Brandon, i n d i c a t e t h a t  NCPC s t i l l  had  the a  -  73 -  l a c k o f u n d e r s t a n d i n g o f t h e s c o p e and d e t a i l of  the studies  and s u r v e y s l i s t e d  required  i n " S c h e d u l e B", a n d o f  w h e t h e r o r n o t t h e y w o u l d have t o be c o m p l e t e d a  licence  to permit construction  before  of the project could  be  issued.  On A u g u s t the  28, Mr. Mooney w r o t e t o Mr. B r a n d o n , and made  following points  about t h e i n f o r m a t i o n  requirements:  Re: M e e t i n g on A u g u s t 23, 1972 Between E n g i n e e r s o f t h e N o r t h e r n Canada Power C o m m i s s i o n and Members o f t h e Yukon Water B o a r d . D u r i n g t h e r e c e n t m e e t i n g , a d i s c u s s i o n was h e l d on t h e f o u r t e e n p o i n t s f o r m i n g " S c h e d u l e B - R e q u i r e d S t u d i e s and S u r v e y s " a c c o m p a n y i n g the f i n d i n g s o f t h e Board f o l l o w i n g the P u b l i c H e a r i n g s i n May, 1972. I t was p o i n t e d o u t b y N.C.P.C. t h a t c l a r i f i c a t i o n was n e c e s s a r y on a number o f t h e s e p o i n t s , p a r t i c u l a r l y t h e s c o p e and n e c e s s a r y c o m p l e t i o n d a t e s f o r t h e s t u d i e s r e q u i r e d by t h e B o a r d . We a p p r e c i a t e t h a t t h e p r e a m b l e t o t h e f o u r t e e n p o i n t s s t a t e d t h e r e s u l t s s h o u l d be a v a i l a b l e "as and when r e q u i r e d by t h e B o a r d " . However, i t i s i m p o r t a n t f o r t h e C o m m i s s i o n t o know now w h i c h s t u d i e s must be c o m p l e t e d and s u b m i t t e d to the Board p r i o r t o issuance o f a c o n s t r u c t i o n l i c e n c e , and w h i c h s t u d i e s n e e d n o t be c o m p l e t e d u n t i l a l a t e r date. 15 I n r e p l y t o Mr. M o o n e y s l e t t e r , 1  Mr. B r a n d o n  stated:  The m a j o r i t y o f t h e s e s u r v e y s were i d e n t i f i e d by y o u r own c o n s u l t a n t s i n t h e i r r e p o r t s a s e s s e n t i a l f u r t h e r work b e f o r e d e s i g n s c o u l d be prepared. The M i n i s t e r ' s l e t t e r o f r e p l y t o t h e Water B o a r d and h i s l e t t e r t o t h e C h a i r m a n o f NCPC make i t p l a i n t h a t NCPC a r e a u t h o r i z e d t o p r o c e e d w i t h a l l s u r v e y s and p r e p a r a t o r y work r e q u i r e d by t h e Board. I n no way c a n i t be s a i d t h a t t h e W a t e r B o a r d a r e h o l d i n g up t h e NCPC. 16  T-  74  -  With r e s p e c t t o the environmental also  reported  s u r v e y s , Mr.  Mooney  that:  13 b). and c) -Animal and p l a n t e c o l o g y - The B o a r d d e c i d e d to consider t h i s further. They w i l l a d v i s e N.C.P.C. i n t h e n e a r f u t u r e as t o t h e e x t e n t of the study c o n s i d e r e d necessary. 17 In c o n t r a s t w i t h t h i s out  understanding,  Mr.  Brandon p o i n t e d  that: Items 13 B and C were n o t r e s o l v e d d u r i n g o u r m e e t i n g b e c a u s e t h e NCPC have n o t c a r r i e d o u t any s u r v e y s i n t h i s r e s p e c t . The B o a r d i n s i s t s t h a t a n i m a l and p l a n t e c o l o g y s u r v e y s must be done i n o r d e r t o c o v e r t h e i m p a c t o f any b a c k w a t e r e f f e c t on Sekulman R i v e r where m u s k r a t and b e a v e r a r e known t o be p r e s e n t and i n t h e r e a c h down s t r e a m f r o m O t t e r F a l l s where c h a n g e s t o p l a n t l i f e and t h e e c o l o g y o f t h e e n t i r e f l o o d p l a i n may t a k e p l a c e . The B o a r d e x p e c t s s c i e n t i f i c r e p o r t s on t h e c o n s e q u e n c e s o f any change i n t h e s e l o c a t i o n s o r i n any a r e a t o be a f f e c t e d by f l o o d i n g t o be c a r r i e d o u t . 18  I t w o u l d a p p e a r t h a t NCPC m i s u n d e r s t o o d  i t s responsibility  t o s u p p l y t h e i n f o r m a t i o n deemed n e c e s s a r y Board, As  i n accordance  the A c t  applicant  states, should  quantitative  and  with  section  11(2)  by  o f t h e N.I.W.A.  t h e i n f o r m a t i o n p r o v i d e d by  "enable  t h e Water  the  ( t h e Board) t o e v a l u a t e  qualitative  any  e f f e c t s of the proposed  use  19 on  t h e w a t e r management a r e a . . . "  a l s o already accepted required  t h a t the Commission  responsibility  Minister  had  the Board's recommendations,  P e r h a p s NCPC d e c i s i o n - m a k e r s their  The  as an  which  s u p p l y more i n f o r m a t i o n . d i d not  applicant  fully  recognize  f o r a water  licence,  - 75  -  nor a p p r e c i a t e the e f f e c t i v e Board,  since they f a i l e d  Water Board's of  a water  to proceed w i t h meeting  r e q u e s t s , and  thereby delayed the  the receipt  licence.  V.  ENVIRONMENTAL STUDIES  The  biological  Bowden, and  s u r v e y s were a g a i n u n d e r t a k e n  t h e i n f o r m a t i o n t h a t was  presented  i n A Report  completed  on O c t o b e r  r e p o r t was  a u t h o r i t y o f t h e Water  conducted  between September  20  on B i o l o g i c a l 15,  1972.  The  by a b i o l o g i s t and  24,  and  by  gathered and  Pearse  was  Botanical  Surveys,  field  work f o r t h e  and  botanist  a  the study concluded  that:  On b a l a n c e t h e i m p a c t o f t h e p r o j e c t on important species of p l a n t s or w i l d l i f e i s j u d g e d t o be m i n i m a l . 20  At  t h e r e q u e s t o f t h e Water B o a r d ,  Service provided a review of t h i s was,  on  quality  the whole, v e r y c r i t i c a l o f d a t a t h a t was  the Canadian report.  The  Wildlife review  o f the q u a n t i t y  and  provided:  U n f o r t u n a t e l y t h i s r e p o r t has p r o v i d e d a v e r y s u p e r f i c i a l i n s i g h t i n t o the impact of t h i s h y d r o - e l e c t r i c p r o j e c t on t h e p l a n t c o m m u n i t i e s and a n i m a l p o p u l a t i o n s i n t h e region. 21  The  C.W.S. r e v i e w o f t h e P e a r s e Bowden r e p o r t  o r g a n i z a t i o n viewed  the o v e r a l l  situation:  s t a t e s how  .that  -  76  -  I f s e r i o u s c o n s i d e r a t i o n had b e e n g i v e n t o the b i o l o g i c a l i m p l i c a t i o n s of t h i s hydroe l e c t r i c p r o j e c t when t h e f i r s t e n v i r o n m e n t a l i m p a c t s t a t e m e n t was p r e p a r e d , t h i s r e p o r t w o u l d n o t have been n e c e s s a r y , f u n d s w o u l d have b e e n s a v e d ; and one f u l l y e a r c o u l d have been u s e d t o s t u d y p l a n t c o m m u n i t i e s and a n i m a l p o p u l a t i o n s i n t h e r e g i o n . 22  During the January was  also  1973  criticized  N e l s o n , who  was  of  Environmental  to  do  h e a r i n g , the Pearse  f o r l a c k o f adequate  Bowden  d a t a by P r o f e s s o r  a r e p r e s e n t a t i v e of the Canadian Biologists,  and who  report  Society  a l s o made a p r o p o s a l  23 t h e same work: I t i s my o p i n i o n t h a t t h e s e c o n d e n v i r o n m e n t a l i m p a c t s t a t e m e n t o f NCPC on t h e e n v i r o n m e n t a l impact o f the A i s h i h i k p r o j e c t i s inadequate i n f u l f i l l i n g t h e i n t e n t and r e q u i r e m e n t s o f t h e NIWA. ... An a d e q u a t e e n v i r o n m e n t a l i m p a c t s t a t e m e n t a t t h e s i t e c e r t a i n l y w o u l d r e q u i r e more t h a n f o u r o r f i v e d a y s f i e l d s t u d i e s and i t w o u l d c e r t a i n l y have t o c o n t a i n q u a n t i f i e d d a t a . Now a t t h e May h e a r i n g s we gave o u r o p i n i o n s as t o how l o n g s u c h a s t u d y w o u l d t a k e , we t h o u g h t i t s h o u l d be a t l e a s t a y e a r and o f c o u r s e e n g i n e e r i n g s t u d i e s h a v e b e e n g o i n g on f o r more t h a n a y e a r . So t h e b i o l o g i c a l s t u d i e s would not h o l d back the p r o j e c t a t a l l . 24  J.  Wolford  Zoology, and  o f the U n i v e r s i t y  a l s o w r o t e t o Mr.  related  of A l b e r t a  B r a n d o n on  January  h i s o p i n i o n of the r e p o r t .  s e e n as  "grossly  Wolford  concluded  inadequate"  Department  in several  The  16,  study  of 1973 was  r e s p e c t s , and  that:  I f e e l very strongly that t h i s application f o r h y d r o e l e c t r i c d e v e l o p m e n t on t h e A i s h i h i k R i v e r must be t u r n e d down by t h e B o a r d and that a reasonable study of expected  -  77 -  e n v i r o n m e n t a l i m p a c t be c a r r i e d o u t . My u n d e r s t a n d i n g i s t h a t an i n f o r m a t i v e r e p o r t f r o m F i s h e r i e s S e r v i c e w i l l p r o b a b l y n o t be f o r t h c o m i n g u n t i l sometime t h i s summer. U n t i l t h a t time, a t the very l e a s t , there are r e a l l y no g r o u n d s f o r any d e c i s i o n ( o t h e r than d e n i a l ) from t h e Board. 25  A very  sharp c o n t r a s t obviously  perceptions interested  o f NCPC o f f i c i a l s  a  impact o f t h e p r o j e c t .  field  for  and t h o s e o f v a r i o u s  professionals regarding  a d e q u a t e body o f i n f o r m a t i o n the  e x i s t e d between t h e  what c o n s t i t u t e d an  f o r the purpose o f a s s e s s i n g From NCPC's p o i n t o f v i e w ,  s u r v e y c o n d u c t e d b y two p r o f e s s i o n a l  f o u r days would enable a s u f f i c i e n t  t o be g a t h e r e d area.  body o f d a t a  a b o u t t h e a n i m a l and p l a n t e c o l o g y  Other p r o f e s s i o n a l b i o l o g i s t s  t h a t one f u l l  biologists  year i n the f i e l d  of the  firmly maintained  w o u l d be m i n i m a l .  The  Water B o a r d d i d n o t s h a r e t h e same o p i n i o n w i t h  and  t h e recommendation  following biological  the January  t h e B o a r d made t o t h e M i n i s t e r 197 3 h e a r i n g  CHANGES  requests.  IN THE WATER LICENCE APPLICATION  D u r i n g t h e summer and f a l l that  indicated that the  s t u d i e s were n o t a d e q u a t e f o r t h e p u r p o s e o f  g r a n t i n g NCPC's  VI.  NCPC,  o f 1972, NCPC  determined  some c h a n g e s were n e e d e d i n t h e c o n d i t i o n s  in  the water l i c e n c e a p p l i c a t i o n .  of  a l a r g e r storage  The c h a n g e s  requested consisted  r a n g e on A i s h i h i k L a k e and r e d u c e d  -  flows over standing  O t t e r and  -  Rainbow F a l l s ,  relative  to  the  application.  NCPC i n d i c a t e d the  78  first  as e a r l y  hearings,  as J u l y  1972,  two  months  after  t h a t t h e s e m o d i f i c a t i o n s would  be  needed. A t t h e J u l y 19, 1972 m e e t i n g o f t h e Commission, Mr. Lowe a d v i s e d t h a t a l i c e n c e f o r any q u a n t i t y of water or storage range o t h e r than 12'6" r e q u e s t e d m i g h t d e s t r o y t h e e c o n o m i c s of the p r o j e c t . 26 NCPC's p r e v i o u s on A i s h i h i k  application  requested  8 feet of  storage  Lake.  F o l l o w i n g Mr.  Lowe's s t a t e m e n t ,  express  the need  reduced  flows.  f o r an On  NCPC c o n t i n u e d  increased storage  August  25,  1972,  to  range  and  f o l l o w i n g one  of  s e v e r a l m e e t i n g s h e l d between members o f t h e W a t e r : B o a r d and during  t h a t summer, Mr.  F. Mooney, NCPC's  Manager f o r t h e Yukon, w r o t e t o Mr. As we past, t o 12 o f 600 for a Mr.  Regional  B r a n d o n and  stated that:  have d i s c u s s e d on many o c c a s i o n s i n t h e s t o r a g e on A i s h i h i k i n t h e o r d e r o f 10 f e e t and a maximum c o m p e n s a t i o n f l o w c . f . s . months a r e t h e two requirements v i a b l e scheme. 27  Brandon r e p l i e d  that:  I f you r e f e r t o y o u r a p p l i c a t i o n and t o d i s c u s s i o n s on t h i s you w i l l see ( p a r a g r a p h page 6-1, E n g i n e e r i n g R e p o r t ) t h a t a l l p r e v i o u s d i s c u s s i o n s have been f o r 8' o f s t o r a g e on A i s h i h i k L a k e . The B o a r d may r e g a r d an i n c r e a s e o f t h i s 8' f i g u r e w i t h a l a r m b e c a u s e i t c o u l d a f f e c t Sekulmun L a k e and Sekulmun R i v e r , t h e I n d i a n V i l l a g e and  1.  NCPC  -  79 -  Fisheries. T h e r e f o r e , I must i n f o r m y o u t h a t we w i l l k e e p t h e d i s c u s s i o n t o 8' o f storage because t h a t i s t h e storage l e v e l applied for. 28  NCPC's r e v i s e d a p p l i c a t i o n , w h i c h was s u b m i t t e d f o r the  J a n u a r y 1973 h e a r i n g ,  r a n g e be 12'6".  requested  The r e a s o n s  in  its final  in  hydrological information  the  fall  in  of  o f 1972.  A lake  gauges were i n s t a l l e d  These d e v i c e s  enabled  Previously,  the s i t e  hydrologic data  recorder  understanding  them when i t f i r s t  had been  records  from a s t a t i o n  make e a r l i e r  It i s  i n 1971.  by a h y d r o l o g i c model u s i n g  a v a i l a b l e data  was  1972, and l a t e r  a much b e t t e r  derived  from t h e c o n f l u e n c e  during  on Canyon and Sekulmun  t h a t NCPC d i d n o t i n s t a l l  began i n v e s t i g a t i n g  The  level  y e a r l y inflows i n t o the A i s h i h i k watershed.  surprising  changes  improvements  t h a t were r e a l i z e d  on A i s h i h i k L a k e i n J a n u a r y  the year  Lakes.  f o r NCPC's p r o p o s e d  a p p l i c a t i o n had t o do w i t h  and w i n t e r  installed  that the storage  "synthetically" 21 y e a r s  l o c a t e d twelve  of the East  miles  o f streamflow downstream  and West A i s h i h i k R i v e r s .  and t h e a n a l y s e s  employed t e n d e d t o  computations of h i s t o r i c a l  extremes ; e r r  29 toward b e i n g  underestimated.  I t might t h e r e f o r e have  been assumed by NCPC and i t s c o n s u l t a n t s storage  r a n g e w o u l d be c a p a b l e  watershed r u n o f f without for  power  generation.  t h a t an 8'  of regulating the f u l l  sacrificing  a v a i l a b l e water  -  Analyses were a b l e that be  -  made s u b s e q u e n t t o t h e f i r s t t o make u s e o f t h i s  hearing,  anticipated  i n order  to safely  variations  content  o f these  The  analyses,  that  and t h e d a t a  Engineering's  I n t e r i m Supplementary Report,  of  base  were o u t l i n e d i n C r i p p e n c o m p l e t e d on  3 0  the d e f i n i t i v e  Mr. Mooney's s t a t e m e n t s compensation  range would  i n r u n o f f and l a k e l e v e l s .  a t t h e time  In c o n t r a s t w i t h  nature  o f Mr. Lowe's and  regarding the storage  range and  f l o w s needed t o ensure t h e economic  the project, the findings of the engineering  much l e s s  certain.  found  accommodate t h e  was a v a i l a b l e  O c t o b e r 23, 1 9 7 2 .  which  new h y d r o l o g i c d a t a ,  a considerable increase i n the storage  necessary  basic  80  Nowhere  i n this  f i g u r e given of the necessary  r e p o r t was a  storage  range.  viability r e p o r t were numerical  The r e p o r t  o n l y m e n t i o n s t h a t t h e a n a l y s i s w h i c h was u n d e r t a k e n "increases the required storage  r a n g e by a r e l a t i v e l y  31 large  amount".  analysis, stressed.  The u n c e r t a i n t y o f t h e outcomes o f t h e 32 and t h e " p a u c i t y o f b a s i c d a t a " , were a l s o F o r example:  Meteorological data f o r the A i s h i h i k River W a t e r s h e d and r e g i o n a l a r e e x t r e m e l y s c a n t , making t h e e s t i m a t i o n o f s e v e r a l parameters l a r g e l y a m a t t e r o f judgement. 33  VII.  THE PUMPING SCHEME  A g r e a t d e a l more w a t e r i s n e c e s s a r y aesthetic  beauty o f O t t e r F a l l s  to preserve the  and m a i n t a i n  i t as a  - 81 -  FIGURE 5 .  THE PUMPING  SCHEME  r-. 82. tourist  attraction  fisheries the East  than  i s needed t o m a i n t a i n t h e  between O t t e r F a l l s  and t h e c o n f l u e n c e o f  and West A i s h i h i k R i v e r s .  between t h e b o t t o m o f O t t e r F a l l s is  only  for to  55 f e e t  and t h e t o t a l  t h e power g e n e r a t o r s  Since  and t h e power  i s about  incurring  NCPC s t a t e d i n September  canal  head o f t h e p r e s s u r e 630 f e e t ,  i n c r e a s e t h e amount o f e l e c t r i c i t y  p r o j e c t without  t h e head  tunnel  i ti s possible  p r o d u c e d by t h e  substantial costs.  1972 t h a t i t i n t e n d e d  t o implement  34 this  scheme, b u t l a t e r w i t h d r e w i t s p r o p o s a l .  Brandon  later  reported  t o Mr. Hunt  Mr.  that:  6 December 1972. The N.C.P.C. a d v i s e d t h a t t h e y h a d g i v e n up t h e i r p r o p o s a l o f pumping w a t e r b a c k o v e r O t t e r F a l l s as i t was u n e c o n o m i c and i n d i c a t e d t h a t t h e c o s t was o v e r $500,000 p e r y e a r . In f a c t t h i s cost can be d e m o n s t r a t e d t o be a b o u t one t h i r d o f t h i s and i t was a p p a r e n t t h a t t h e y were g o i n g t o c o n f r o n t t h e B o a r d w i t h i n c r e a s e d demands f o r w a t e r and i n a d e q u a t e e c o n o m i c and e n g i n e e r i n g and e n v i r o n m e n t a l a n a l y s i s t o justify their application. 35  VIII.  SUMMARY  Immediately  following the hearing,  t h e Water  Board  recommended t o t h e M i n i s t e r t h a t t h e p r o j e c t a p p e a r e d t o have c o n s i d e r a b l e m e r i t , by  but that the information  NCPC was n o t s u f f i c i e n t  of the p r o j e c t . requirements  to evaluate  The B o a r d p r o v i d e d  the e f f e c t s  a list  of information  t h a t w o u l d have t o be met b e f o r e  c o u l d be i s s u e d , and t h e M i n i s t e r a c c e p t e d recommendations.  provided  a  licence  the Board's  -  NCPC i n i t i a l l y  83  -  r e a c t e d t o t h e Board's  questioning  t h e Board's  alternative  licencing  d e c i s i o n by  jurisdiction,  arrangements.  a r r a n g e m e n t s were a v a i l a b l e ,  and by s e e k i n g No  alternative  however, and NCPC had no  c h o i c e b u t t o comply w i t h t h e Water B o a r d ' s  Although  t h e N.I.W.A. R e g u l a t i o n s were p r o m u l g a t e d  September 14 and a h e a r i n g f o r a w a t e r have b e e n h e l d yet  completed  Water  It  immediately  could  t h a t d a t e , NCPC had n o t  the information requirements  t h a t NCPC had a v e r y p o o r  responsibility  application, provided that  after  licence  on  listed  by t h e  Board.  appears  its  requirements.  very c l e a r  statements  t o NCPC by t h e W a t e r B o a r d  be  fulfilled  It  also  purpose  to supply information t o support i t s  even though  t h e Board's  licence  s u r v e y s t h a t were u n d e r t a k e n r e p o r t were c o n d u c t e d  impact  w o u l d have t o  c o u l d be i s s u e d .  t h a t NCPC d i d n o t f u l l y  o f an e n v i r o n m e n t a l  had been  and by t h e M i n i s t e r  information requirements  b e f o r e a water  appears  understanding of  appreciate the  statement,  since the  t o supplement t h e p r e l i m i n a r y  i n o n l y four days,  following a  d e l a y o f s e v e r a l months.  The r e p o r t  was v e h e m e n t l y  by a number o f p r o f e s s i o n a l  criticized  b i o l o g i s t s , who f i r m l y m a i n t a i n e d be  n e c e s s a r y t o complete  t h a t NCPC p r o v i d e d  that  an a d e q u a t e  a f u l l year  environmental  would survey.  - 84 -  Given  t h e degree  made a v a i l a b l e  of factual  t o NCPC a b o u t  before a licence  failed  effort  i t may be. c o n c l u d e d  Consequently,  on a c o u r s e o f a c t i o n of a water l i c e n c e ,  decision-makers  na,ture o f t h e i r  t h e Power C o m m i s s i o n  that  embarked  served to delay t h e r e c e i p t  c o n t r a r y t o i t s own a p p a r e n t  and s e c o n d  hearings  f  c o n d i t i o n s o f i t s water l i c e n c e t h e economic v i a b i l i t y  on h a v i n g t h e s e a d d i t i o n a l this  t h a t NCPC  such-  interests  objectives.  Between the. f i r s t  that  t o generate  to p e r c e i v e adequately the r e a l  position.  and  t h e need t o s u p p l y i n f o r m a t i o n  c o u l d be g r a n t e d , a n d g i v e n t h e f a c t  t h a t NCPC made v e r y l i t t l e information,  and o b j e c t i v e i n f o r m a t i o n  NCPC cha,nged t h e  application  of the project  and i n d i c a t e d c o u l d depend  requests granted.  During  p e r i o d o f t i m e NCPC a l s o d e c i d e d n o t t o i m p l e m e n t  t h e pumping scheme, c o n t r a r y t o p r e v i o u s  statements,  - 85 CHAPTER FOUR REFERENCES AND  NOTES  1.  L. B r a n d o n t o J . C h r e t i e n , A t t a c h m e n t 3.  26 May  1972, i n D a l b y R e p o r t ,  2.  Ibid.,  3.  J . Chretien  4.  Yukon T e r r i t o r y Water B o a r d , " M i n u t e s o f M e e t i n g No. 24 t o 26 May 1972, p.5,6.  5.  L . B r a n d o n t o A. B. Y a t e s , D i r e c t o r , , N o r t h e r n D e v e l o p m e n t B r a n c h , 5 J u n e 1972.  6.  J . M. Lowe t o B. R o b i n s o n , D e p u t y M i n i s t e r NCPC, 16 J u n e 1972, p . l .  7.  I b i d . , p.2.  8.  J . M. Lowe t o B. R o b i n s o n , 13 J u n e 1972, p . 5 .  9.  N. Simmonds, S e c r e t a r y , Y u k l n T e r r i t o r y Water B o a r d , "Comments on N.C.P.C.'s d r a f t l e t t e r t o t h e M i n i s t e r - J u n e 13, 1972", 20 J u n e 1972, p . l .  " S c h e d u l e B". t o L. B r a n d o n ,  1 4 . J u l y 1972. 3",  Economic  and C h a i r m a n  10.  Yukon T e r r i t o r y Water B o a r d , " M i n u t e s o f M e e t i n g No.3", 24 t o 26 May 1972, p . 3 .  11.  N. Simmonds,  12.  L . B r a n d o n t o D. Hunt,  13.  J . M. Lowe t o B. R o b i n s o n , 16 June 1972,  14.  J . Chretien  15.  F. Mooney t o L B r a n d o n , 28 A u g u s t 1972, p . l .  16.  L. B r a n d o n t o F. Mooney, 6 September  17.  F. Mooney t o L . B r a n d o n , 2 8 A u g u s t 1972, p . 3.  18.  L. B r a n d o n t o F. Mooney, 6 September  19.  Northern  20.  P e a r s e Bowden E c o n o m i c C o n s u l t a n t s , "A R e p o r t on B i o l o g i c a l and B o t a n i c a l S u r v e y s A i s h i h i k R i v e r Power D e v e l o p m e n t " , 15 O c t o b e r 1972, p.4.  "Comments", p . l . 25 M a r c h  1974, p . l .  t o B. R o b i n s o n , 25 J u l y  I n l a n d Waters A c t , S e c t i o n  p.3,4,5.  1972,p.1,2.  1972, p . l .  1972, p . 2 . 11(2).  - 86  -  21.  C a n a d i a n W i l d l i f e S e r v i c e , "A R e p o r t on B o t a n i c a l and B i o l o g i c a l S u r v e y s - A i s h i h i k Power D e v e l o p m e n t , Yukon T e r r i t o r y " , 15 J a n u a r y 1973, p.7. The C a n a d i a n W i l d l i f e S e r v i c e had a l s o p l a y e d a p r e v i o u s , i f abortive r o l e , i n conducting b i o l o g i c a l surveys f o r t h e A i s h i h i k p r o j e c t by o f f e r i n g t o NCPC an i m p a c t s t u d y p r o p o s a l on t e r r e s t r i a l c o m m u n i t i e s . A draft o f t h i s p r o p o s a l was s u b m i t t e d t o NCPC by t h e Water B o a r d on 1 A u g u s t 1972. (A. B. H o l l i n g s h e a d , C o n t r o l l e r o f W a t e r R i g h t s t o F. Mooney 2 A u g u s t 1972, p.2). The t o t a l c o s t o f t h e p r o p o s e d s t u d y was $37,000, and a c o n d i t i o n o f t h e s t u d y was t h a t i t w o u l d l a s t a minimum o f one y e a r , and c o u l d be e x t e n d e d f o r f o u r a d d i t i o n a l months i f more i n f o r m a t i o n was r e q u i r e d . D u r i n g a m e e t i n g between NCPC and t h e W a t e r B o a r d on A u g u s t 23, "NCPC r e p o r t e d t h e terms o f r e f e r e n c e f o r t h e s e s t u d i e s and t h a t t h e i r p r o p o s a l w o u l d be p r e s e n t e d t o t h e B o a r d and t h r o u g h t h e B o a r d t o t h e C a n a d i a n Wildlife Service". (Yukon T e r r i t o r y W a t e r B o a r d , " M i n u t e s o f M e e t i n g No.4", 23 and 24 A u g u s t 1972, p.4), A p p a r e n t l y t h e CWS and NCPC c o u l d n o t t h e n a g r e e on t h e s e t e r m s o f r e f e r e n c e , and t h e CWS d i d n o t c o n d u c t the s t u d i e s . I t i s l i k e l y t h a t t h e one y e a r minimum was r e q u i r e d by CWS i n o r d e r t o c o m p l e t e a p r o p e r s t u d y b u t was u n a c c e p t a b l e t o NCPC.  22.  Canadian W i l d l i f e  23.  G.  24.  J . S. N e l s o n , D e p a r t m e n t o f Z o o l o g y , U n i v e r s i t y o f A l b e r t a , L i c e n c i n g H e a r i n g T r a n s c r i p t , 17 J a n u a r y 1973, p.54,55.  25.  J . W o l f o r d , Department o f Zoology, U n i v e r s i t y t o L. B r a n d o n , 16 J a n u a r y 1973.  26.  R.  27.  F. Mooney t o L. B r a n d o n ,  28.  L. B r a n d o n  29.  A c r e s C o n s u l t i n g S e r v i c e s L i m i t e d , "Review o f S u b m i s s i o n on M a t e r i a l P e r t a i n i n g t o t h e A i s h i h i k H y d r o - E l e c t r i c P r o j e c t NCPC A p p l i c a t i o n f o r Amendment o f W a t e r Use L i c e n c e " , A u g u s t 1975, p.2.  30.  G. E . C r i p p e n & A s s o c i a t e s , " A i s h i h i k R i v e r Power D e v e l o p m e n t I n t e r i m S u p p l e m e n t a r y R e p o r t " , 23 O c t o b e r ,  Service,  "Review",  Bowden t o a u t h o r , 17 A p r i l  N.  Dalby  & Associates,  p.8.  197 9.  Dalby Report, 25 A u g u s t  of  Alberta,  p.12.  1972.  t o F. Mooney, 6 September  1972,  p.2.  1972.  -  87  -  31.  Ibid.,  p.3.  32.  Ibid.,  p.2.  33.  Ibid.,  p.4.  34.  L. B r a n d o n t o B. T r e v o r , R e g i o n a l 18 September 1972.  35.  L. B r a n d o n t o D. Hunt,  25  Director  M a r c h 1974,  p.2.  of  Resources,  -  88 -  CHAPTER F I V E SECOND HEARING AND OUTCOME, DECISION TO PROCEED - JANUARY TO APRIL, 19 73 I.  INTRODUCTION  This  chapter  hearing, events  d e s c r i b e s what t o o k p l a c e d u r i n g  and e x p l a i n s t h e outcome o f t h e h e a r i n g  t h a t took p l a c e p r i o r  and t h e  t o NCPC's d e c i s i o n t o  with  the construction of the p r o j e c t .  II.  DATE OF HEARING  The  the second  proceed  m i n u t e s o f a m e e t i n g o f t h e Water B o a r d h e l d on  November 28, 1972 s t a t e t h a t : Members a g r e e d t o t h e p r o p o s e d n o t i c e o f p u b l i c h e a r i n g and d e c i d e d t h a t i f b r i e f s were p r e s e n t e d a p u b l i c h e a r i n g w o u l d be h e l d i n W h i t e h o r s e on J a n u a r y 17, 1973 u n d e r S e c t i o n 15(2) o f t h e N o r t h e r n I n l a n d Waters A c t . 1  No r e c o r d i s a v a i l a b l e o f NCPC h a v i n g formal  a p p l i c a t i o n f o r a water  licence  submitted before  a new  the Board's  November 1972 m e e t i n g .  It  a p p e a r s t h a t t h e Water B o a r d  provide  set this  an i n c e n t i v e t o NCPC t o c o m p l e t e  s t u d i e s and s u r v e y s the p r o j e c t .  and t o e x p e d i t e  As t h e C h a i r m a n  later  date  i n order to  the necessary  the implementation reported:  I n o r d e r t o g e t t h e p r o j e c t underway, I s e t a mid-January date f o r the formal p u b l i c hearing. 2  of  III.  TERMS OF  NCPC's s e c o n d storage annual The of  be  THE  allowed  requested  on A i s h i h i k  application  storage  r a n g e and actually  and  600  r a n g e and  t h a t 12.5  Lake and  Otter F a l l s  i n May  c.f.s.  1972  4 40  requested  f o r an  a compromise p r o p o s a l , and of water would e n t a i l  no  be  flow r e l e a s e s over  feet  t h a t the  months f o r t h e  that i t s request  decreased  optimum u s e  of  average  c.f.s. only  months.  8  feet  flow r e l e a s e s .  increased  storage  Otter Falls  emphasized  a 17.5  foot  was  that  an  storage  flow r e l e a s e s .  SECOND HEARING  Submissions t o the  h e a r i n g were g i v e n by r e p r e s e n t a t i v e s  a number o f p u b l i c o r g a n i z a t i o n s .  represented  by Mr.  disappointment the  K.  with  availability  reports.  t h e n o t i c e g i v e n on  of the  engineering  Biologists  the environmental  both  of these  The  n o t b e e n c o r r e c t e d by  of  and  the  continued hearing  and  environmental  the Canadian S o c i e t y of  a l s o gave a s e v e r e  impact  submissions  problems encountered  C.E.L.R.F.,  Beauchamp, e x p r e s s e d  P r o f e s s o r Nelson  Environmental of  APPLICATION  application  NCPC c o n s i d e r e d  of  -  flow r e l e a s e s over  first  IV.  89  statement.  indicate  d u r i n g the  The  criticism contents  t h a t some o f t h e  first  h e a r i n g had  t h e Water B o a r d o r by  NCPC.  of major  still  -  90  The  cost  estimates  the  rate  s t r u c t u r e were a l s o q u e s t i o n e d d u r i n g  h e a r i n g s by Board.  NCPC's c u r r e n t $15  construction  Mr.  the  and  and  and  estimate  million,  of  i t s effect  the  f o r the  i t calculated  p r o j e c t would not  the  Public cost  on  Utilities  of  the  that  the  significantly  affect  rates.  Choate of  responsible area,  project  b o t h Yukon E l e c t r i c  p r o j e c t was  power  f o r the  -  f o r the  stated  maintain  Yukon E l e c t r i c ,  that  which i s a p r i v a t e  distribution  i t w o u l d be  i t s present  rate  of  power i n t h e  very d i f f i c u l t  structure  i f the  company Whitehorse  f o r NCPC t o  Aishihik  3 p r o j e c t were c o n s t r u c t e d . the  granting  of  The  a l i c e n c e be  more i n f o r m a t i o n  company recommended  deferred  until  NCPC  about a l t e r n a t i v e g e n e r a t i o n  that  provided  schemes,  and 4  about c a p i t a l The  Public  information and  the  and  operating  Utilities be  given  e f f e c t s of  and  that  by  the  of  the  NCPC on project  the  As  be  project  m e n t i o n e d , members o f  this  possibility  at the  the  more  production 5 structure.  rate  i n t e r e s t e d and  informed  t h e y were n o t  the  satisfied  resulting rate  t o have been  Water B o a r d  time of  project.  economic a n a l y s e s .  and  considered  costs  the  i t i s clear that  eventual  cannot t h e r e f o r e  on  very  e s t i m a t e s and  of  f o r the  requested  w i t h NCPC's c o s t cost  estimates  Board a l s o  T h e s e r e q u e s t s came f r o m two organizations,  cost  the  first  The increases  unforeseeable.  also  recognized  hearing.  .9.1  T-.  Another important submission a t the hearing was presented by Mr. P h i l l i p s o f T e s l i n E x p l o r a t i o n L t d .  Following  a d d i t i o n a l s t u d i e s conducted s i n c e the l a s t h e a r i n g , the company maintained t h a t i t would be p o s s i b l e t o i n s t a l l a thermal c o a l p l a n t a t D i v i s i o n Mountain  ( i . e . Nordenskiold)  t h a t would produce e l e c t r i c i t y a t c o s t s t h a t were lower than NCPC's c u r r e n t estimates f o r the c o s t o f power produced from t h e A i s h i h i k . ^  NCPC's estimates f o r power  c o s t s a t A i s h i h i k were, o f course, u n r e a l i s t i c a l l y low, yet T e s l i n ' s p r o p o s a l  The  Yukon Native  was s t i l l  competitive.  Brotherhood i n d i c a t e d o p p o s i t i o n t o the  p r o j e c t on the grounds t h a t t h e i r land claims had not been settled.  The A i s h i h i k Indian Band a l s o expressed  opposition  on the grounds t h a t there had not been enough n a t i v e i n p u t i n t o the s t u d i e s conducted f o r the p r o j e c t .  V.  THE WATER BOARD'S DECISION  On February 1, 1973, Mr. Brandon wrote t o the M i n i s t e r , g i v i n g the Board's recommendations on the water l i c e n c e application: On reviewing the e n g i n e e r i n g and environmental i n f o r m a t i o n provided by the a p p l i c a n t and the b r i e f s , the Board found t h a t the Northern Canada Power Commission had not completed some o f the s t u d i e s i n the d e t a i l r e q u i r e d i n Schedule B o f my l e t t e r t o you dated May 26. T h i s i s p a r t i c u l a r l y the case with r e s p e c t t o item 5 which r e q u i r e d a d e t a i l e d study o f the i n t e g r a t e d o p e r a t i o n o f the proposed A i s h i h i k p r o j e c t w i t h the Whitehorse Rapids p l a n t . I t was a l s o the case w i t h item 13 i n the same schedule which r e q u i r e s more f i e l d work. ...  -  92  -  On g o i n g t h r o u g h t h e f o r e c a s t power demand t o 19 83 c a l c u l a t i o n s show t h a t , w i t h i n t h e coming f i v e y e a r s , i f the A i s h i h i k c o n s t r u c t i o n commences now i t w o u l d be p o s s i b l e t o o p e r a t e t h e power c a n a l and i n t a k e t o meet f u l l power demand and s t i l l keep t h e A i s h i h i k l a k e l e v e l s to w i t h i n a s i x f o o t storage range. The Board concluded t h a t i n g r a n t i n g a water l i c e n c e t h e r e i s no. immediate need t o r a i s e the A i s h i h i k l a k e l e v e l above i t s n a t u r a l h i g h w a t e r . Consequently the Board agreed unanimously to recommending t o you t h a t t h e a p p l i c a t i o n f o r a w a t e r l i c e n c e be g r a n t e d and i n c l u d e t h e f o l l o w i n g provisional constraints. 1.  The r e g u l a t e d mean m o n t h l y l e v e l s o f A i s h i h i k Lake s h a l l n o t e x c e e d 3002.5 s h a l l t h e y f a l l below 2996.5.,,  nor  2.  The r e g u l a t e d mean m o n t h l y l e v e l s o f Canyon L a k e s h a l l n o t e x c e e d e l e v a t i o n 2975, n o r s h a l l t h e y f a l l b e l o w 2972.,.  3.  The f l o w r e l e a s e o v e r O t t e r F a l l s s h a l l be no l e s s t h a n 1000 c . f . s . months p e r y e a r . The p a t t e r n o f r e l e a s e s h a l l be s p e c i f i e d a t t h e B o a r d ' s d i s c r e t i o n and may be r e v i s e d from time t o time.  4.  The f l o w r e l e a s e o v e r Rainbow F a l l s s h a l l no l e s s t h a n 25 c . f . s . w h i l e f l o w r e l e a s e over Otter F a l l s takes place.  be  The above c o n s t r a i n t s may be r e l a x e d . However, t h i s w i l l r e q u i r e the f o l l o w i n g documentation: 1.  S y s t e m a n a l y s i s s t u d i e s by NCPC o f t h e p e r i o d 1975-1985 s h o w i n g t h e e c o n o m i c a d v a n t a g e s o f l a r g e r r a n g e s o f s t o r a g e on A i s h i h i k L a k e or smaller flow r e l e a s e s over Otter F a l l s .  2.  E n v i r o n m e n t a l s t u d i e s by c o n s u l t a n t s o r government a g e n c i e s r e g a r d i n g t h e r e s u l t a n t i m p a c t on s o c i a l and b i o l o g i c a l i n t e r e s t s i n the r e g i o n .  Because of the p o s s i b i l i t y of f u t u r e r e l a x a t i o n o f t h e above c o n s t r a i n t s t h e B o a r d w i l l a l l o w NCPC t o c o n s t r u c t t h e c o n t r o l dam on A i s h i h i k L a k e i n s u c h a manner t h a t a l a r g e r r a n g e o f r e g u l a t i o n w o u l d be p o s s i b l e . 7  -  The B o a r d  decided  that  as  the  environmental  effects  the  real  of  reduced  benefits f l o w s was  meet NCPC's  Board  costs  felt  l o n g as of  the  that  information project  increased  insufficient,  requests.  environmental the  an  -  93  storage  it  power  would  generation  about  range  was n o t  The r e q u e s t s  and  and  about  and  prepared affect  both  benefits,  neither  of  t h e s e were  conclusion that  an  increased  to  and  adequately  documented.  The B o a r d ' s was n o t its  necessary  own c o n s u l t a n t ,  Hydraulic and  author  Professor which  of  Professor the  on a d v i c e  E. Kuiper,  of water  that  integrated Lake".  resources.  prepared "there  a report  are  system with o  Professor  range  given  by  Chairman of  University of Manitoba  two w e l l - k n o w n t e x t b o o k s  Kuiper  found  Aishihik  l a r g e l y based  Engineering at  and development  the  was  storage  on t h e  economics  Following for  the  the  Water  no d i f f i c u l t i e s i n 6 feet Kuiper  of  noted  Board  operating  regulation  also  hearing,  of  that:  To p r o v e t h e d e s i r a b i l i t y o f p r o c e e d i n g i m m e d i a t e l y w i t h the A i s h i h i k R i v e r Power D e v e l o p m e n t , one w o u l d have t o c o n d u c t comparative systems a n a l y s e s , over a p e r i o d of at least ten years, of alternative sequences o f development. Such an a n a l y s i s has n o t been p r o v i d e d by NCPC. Therefore, i t i s at t h i s time not c e r t a i n t h a t the A i s h i h i k R i v e r Power Development i s i n d e e d the most economic a d d i t i o n t o the W h i t e h o r s e Power System. We c a n d o n o m o r e t h a n s u r m i s e t h a t t h i s i s probably the case.  -  94 -  I t i s t o be hoped t h a t i n t h e f u t u r e t h e N.C.P.C. w i l l p r o d u c e a d e q u a t e d o c u m e n t a t i o n t o b a c k up i t s a p p l i c a t i o n s f o r w a t e r l i c e n c e s . . . I f t h e r e i s no q u a n t i t a t i v e i n f o r m a t i o n on t h e e c o n o m i c a d v a n t a g e s o r on t h e e n v i r o n m e n t a l d e g r a d a t i o n i t becomes i m p o s s i b l e f o r t h e Board t o pass p r o p e r judgement.  Professor storage  Kuiper's analysis indicated that  r a n g e on A i s h i h i k L a k e w o u l d n o t r e s u l t i n d i e s e l  energy being in  a s i x foot  order  Aishihik  extensively  used over the f i r s t  t o make up f o r l o s t  power p r o d u c e d  six  years  from t h e  project.  T h e r e i s no d o u b t t h a t t h e d i e s e l e n e r g y , . . . c a n be r e d u c e d w i t h a l a r g e r r a n g e o f r e g u l a t i o n on A i s h i h i k L a k e . However, we a r e then g e t t i n g i n t o the problem... o f determining whether o r n o t t h e consequent f i n a n c i a l g a i n s would j u s t i f y the consequent e n v i r o n m e n t a l damages. The onus i s on t h e power company t o prove t h i s p o i n t . 11  The  conclusions  the  magnitude o f c o s t s  range stand the  benefits  Professor  made b y t h e Water B o a r d s c o n s u l t a n t  the  associated  with a larger  K u i p e r a l s o recommended  range.  i n h i s report  exactly  w h i c h were s u b s e q u e n t l y recommended t o  and c o n c l u s i o n s  Water B o a r d ' s  storage  w i t h NCPC's e v a l u a t i o n s o f  M i n i s t e r by t h e W a t e r B o a r d .  analysis the  r e s u l t i n g from a s i x f o o t  i n sharp c o n t r a s t  those c o n d i t i o n s  about  1  Evidently  had c o n s i d e r a b l e  decision.  Professor  influence  Kuiper's  over  -  Another important to only of  any  place  allow  reason  Certain  -  behind  the  a s i x foot storage  f l o o d i n g of i f the  95  the  natural  legal,  Water B o a r d ' s  range i n v o l v e d  high  w a t e r mark was  other  Native  political  Indian  land  claim  Board recognized negotiation  been made w i t h  organizations,  have e s t a b l i s h e d  an  and  the  to  i n the  No  A i s h i h i k Band  f l o o d the  North  was  and  Village  in general.  p o t e n t i a l complexity  p r o c e s s and  take  problems would  important precedent with respect  issues the  effects  exceeded.  have r e s u l t e d from f l o o d i n g A i s h i h i k V i l l a g e . yet  the  A i s h i h i k V i l l a g e , which would  s o c i o l o g i c a l and  a r r a n g e m e n t had  decision  of  the  r e l u c t a n t to create  could to  The  Water  necessary any  such  precedent.  In a l e t t e r President Minister of  the  claim  of  from J . C h r e t i e n the  himself  Yukon B r o t h e r h o o d on acknowledged the  p o t e n t i a l e f f e c t of i s s u e s , and  to Chief  explained  chose to accept the  Board's  the  Elijah April  Smith, 17,  g r a v i t y and  1973,  importance  A i s h i h i k p r o j e c t on  some o f  the  the  r e a s o n s why  land he  decision:  ... a t t h i s p o i n t where we a r e a b o u t t o e n t e r i n t o what may w e l l be one o f t h e most s i g n i f i c a n t n e g o t i a t i o n s e v e r u n d e r t a k e n between a g o v e r n m e n t and a g r o u p o f c i t i z e n s i n t h e h i s t o r y o f C a n a d a , I want t o a s s u r e you t h a t t h i s d e c i s i o n has b e e n t a k e n w i t h o u t p r e j u d i c e t o t h e e v e n t u a l outcome of these negotiations. At t h i s p o i n t i n time I do n o t b e l i e v e t h a t e i t h e r o f us can f o r e c a s t w i t h any d e g r e e o f r e l i a b i l i t y how l o n g t h e n e g o t i a t i n g p r o c e s s may t a k e and I c o n c l u d e d t h a t I c o u l d not d e l a y a d e c i s i o n a f f e c t i n g the l i v i n g c o s t s and t h e a v a i l a b i l i t y o f e l e c t r i c a l power f o r a l l Yukon r e s i d e n t s u n t i l we know t h e outcome o f o u r n e g o t i a t i o n s . 12  -  Mr.  Brandon l a t e r  96  reported  -  some o f t h e  reasons  behind  the Water Board's d e c i s i o n : Immediately a f t e r the h e a r i n g s , I a d v i s e d the D e p a r t m e n t t h a t t h e B o a r d were unanimous i n t h e i r o p i n i o n t h a t t h e p r o j e c t s h o u l d go a h e a d , b e c a u s e i t was c l e a r l y more e c o n o m i c t h a n p r e s e n t t h e r m a l power g e n e r a t i o n , t h e r e was an u r g e n t n e e d f o r more power d e v e l o p m e n t and t h e N.C.P.C. had no o t h e r a l t e r n a t e p l a n s . ... The c o n d i t i o n s i m p o s e d i n t h e l i c e n c e gave t h e N.C.P.C. a p p r o v a l t o c o n s t r u c t i m m e d i a t e l y and t i m e t o do t h e i r homework w i t h o u t f u r t h e r d e l a y . F u r t h e r m o r e , i t gave t h e D e p a r t m e n t t i m e t o r e s o l v e t h e p o l i t i c a l and s o c i a l p r o b l e m s a s s o c i a t e d w i t h the Indian V i l l a g e . 13  VI.  NCPC'S REACTION  After considering  the  contents  o f t h e Water  Board's  r e c o m m e n d a t i o n s t o t h e M i n i s t e r , NCPC management a report entitled Water L i c e n c e  " A p p r a i s a l of the  Conditions".  "Recommendations t o t h e  The  prepared  Proposed A i s h i h i k  r e p o r t made t h e  following  Commission":  The t e r m s o f t h e Water B o a r d ' s r e c o m m e n d a t i o n s impose s e v e r e r e s t r i c t i o n s on t h e p r o j e c t and i n t r o d u c e a c o n s i d e r a b l e element of u n c e r t a i n t y i n t o the p r o j e c t d e s i g n . While there i s e n c o u r a g e m e n t t h a t t h e r e s t r i c t i o n s may be r e l a x e d i n t h e f u t u r e , t h e r e i s no g u a r a n t e e of t h i s . No p r u d e n t i n v e s t o r w o u l d commit c a p i t a l t o a p r o j e c t where t h e p r o s p e c t s f o r n e t b e n e f i t s a r e so s e v e r e l y e m a s c u l a t e d and w h i c h r e m a i n s so uncertain. The C o m m i s s i o n must s e r i o u s l y q u e s t i o n w h e t h e r i t w o u l d be p r u d e n t t o commit funds to c o n s t r u c t i o n of the A i s h i h i k p r o j e c t under the p r e s e n t c o n d i t i o n s o f the l i c e n c e u n l e s s t h e r e s t r i c t i o n s c a n be r e l a x e d o r removed. 14  ^  In o r d e r to presented  support  the  97  -  t h e s e r e c o m m e n d a t i o n s , the.  following  report  findings:  The r e d u c t i o n o f t h e s t o r a g e r a n g e f r o m u n r e s t r i c t e d t o f e e t would c a u s e a l o s s o f between $ 0 , 8 m i l l i o n a n n u a l l y i n power b e n e f i t s , when t h e p l a n t i s f u l l y l o a d e d , as r e p r e s e n t e d by t h e p r e s e n t c o s t o f replacement d i e s e l p l a n t generation. This i s a l m o s t 50% o f t h e t o t a l e c o n o m i c b e n e f i t s o f t h e project. Over a 5 0 - y e a r p r o j e c t l i f e the c o s t o f r e p l a c e m e n t power w o u l d be $ 6 5 t o $ 8 5 m i l l i o n . ... The c o m b i n e d r e d u c t i o n i n t h e f l o w o f w a t e r a v a i l a b l e f o r power p r o d u c t i o n i n v o l v e s a c o s t o f between $ 0 . 4 and $ 0 . 5 m i l l i o n a n n u a l l y i n power b e n e f i t s . Over a 5 0 - y e a r p r o j e c t l i f e t h e l o s s o f power b e n e f i t s w o u l d be $ 3 4 - $ 4 2 m i l l i o n . As n o t e d t h e c o n d i t i o n s o f t h e l i c e n c e imposed by t h e Water Board s e v e r e l y r e s t r i c t the generation o f e l e c t r i c power. The power c o n s u m e r s o f t h e Yukon w i l l h a v e t o o b t a i n r e p l a c e m e n t f r o m a l t e r n a t i v e s o u r c e s a t c o n s i d e r a b l e c o s t , when t h e power c o u l d be o b t a i n e d f r o m t h e A i s h i h i k p r o j e c t f o r l i t t l e a d d i t i o n a l c o s t . ... The n e t e c o n o m i c b e n e f i t f r o m t h e A i s h i h i k P r o j e c t c a n be s t a t e d as t h e s a v i n g s i n c o s t by o b t a i n i n g power a t A i s h i h i k r a t h e r t h a n f r o m t h e n e x t b e s t a l t e r n a t i v e source. The t o t a l n e t a n n u a l b e n e f i t o f t h e r e s t r i c t i o n s imposed by t h e W a t e r B o a r d , i f m a i n t a i n e d f o r the l i f e of the p r o j e c t , r e q u i r e the s a c r i f i c e of $ 1 . 3 to $ 1 . 4 m i l l i o n of these annual b e n e f i t s , more t h a n 7 0% o f t h e n e t e c o n o m i c b e n e f i t of the p r o j e c t . 15  The  NCPC management's a n a l y s i s  the  net  the  Water Board's c o n d i t i o n s  economic b e n e f i t  used to best the on  a r r i v e at  a l t e r n a t i v e source cost  the  lost  this  of  basis  the of  power u s i n g  project.  of  the  estimated project  were n o t  conclusion  that  w o u l d be  relaxed.  assumes t h a t  i s d i e s e l generation,  Board's r e s t r i c t i o n s could how  much i t w o u l d c o s t  d i e s e l generation  7 0%  to  The  if  method  the  next that  calculated  supply  over the  lost  and  be  of  life  the of  the  6.  The of  report  also  states  98  -  that  NCPC c o n d u c t e d  investigations  a l t e r n a t i v e s i t e s t o the A i s h i h i k : The A i s h i h i k P r o j e c t . . . o f a l l t h e p o s s i b l e a l t e r n a t i v e s i t e s c o n s i d e r e d , had t h e l e a s t environmental impact. More e c o n o m i c s i t e s w i t h h i g h e r e n v i r o n m e n t a l c o s t s were p a s s e d o v e r . 16  Diesel other  power was n o t , t h e n , t h e o n l y  s i t e s were a p p a r e n t l y more e c o n o m i c , b u t NCPC  chose n o t t o i n v e s t i g a t e environmental  It  them b e c a u s e o f c o n c e r n f o r  impacts.  i s p e r h a p s q u e s t i o n a b l e w h e t h e r d i e s e l power w o u l d  been t h e n e x t b e s t a l t e r n a t i v e the  project.  Information  producing e l e c t r i c i t y that  cost  available  using  coal,  were o n l y  o f c o a l was n e v e r m e n t i o n e d  The  report  indicated than  f o r the  The p o s s i b l e  i n the report.  a l s o makes no m e n t i o n o f t h e p r o b l e m s  flooding  t h e most i m p o r t a n t  to  restrict  reasons behind  the storage range.  mention o f P r o f e s s o r  Kuiper's a n a l y s i s , which  range g i v e n t h e expected  S i n c e t h e NCPC r e p o r t  the Board's  load  f o r a larger  make  contends storage  growth.  indicated  w o u l d be l o s t  decision  Nor does t h e r e p o r t  t h e r e was no i m m e d i a t e n e e d  the project  associated  A i s h i h i k V i l l a g e , a l t h o u g h t h i s was one  of  that  estimates  $15 m i l l i o n .  use  with  about t h e c o s t o f  f o r instance,  power, e v e n t h o u g h c u r r e n t  of the project  have  source over the l i f e of  i t was c o m p a r a b l e , i f n o t l e s s e x p e n s i v e ,  Aishihik  of  a l t e r n a t i v e , and  that  t h e economic  i f t h e Water  Board's  viability  -  99  -  r e s t r i c t i o n s were e n f o r c e d , is  apparent  between t h e s e  then  a degree o f i n c o n s i s t e n c y  findings  and NCPC's e a r l i e r  c l a i m s about t h e p r o j e c t ' s o p e r a t i n g parameters. earlier and  a p p l i c a t i o n which requested  600 c . f . s . months c o m p e n s a t i o n  t o have made t h e p r o j e c t  It  8 feet of storage f l o w s , would n o t appear  economically  viable.  i s evident that the analysis presented  management's r e p o r t e x a g g e r a t e d t h e Water B o a r d ' s  VII.  NCPC's  i n t h e NCPC  the costs involved with  restrictions.  DECISION TO PROCEED  NCPC i n i t i a l l y  d e d i c e d n o t t o go ahead w i t h  under t h e l i c e n c e  conditions.  the project  I t was a p p a r e n t l y  by NCPC t h a t t h e c o n d i t i o n s o f t h e l i c e n c e were likely  t o r e m a i n even i f i t p r o v i d e d  surveys  requested  very  t h e s t u d i e s and  by t h e W a t e r B o a r d , and t h a t  c o n d i t i o n s would p r o b a b l y  assumed  d e s t r o y t h e economic  these viability  of the project.  After and  some c o n s u l t a t i o n w i t h  s e n i o r DIAND  w i t h Mr. B r a n d o n , NCPC d e c i d e d  proceed  with  the project,  the Water Board application.  almost  i n late April  t h r e e months  recommended on t h e w a t e r  Mr. B r a n d o n l a t e r  officials  after  licence  reported that:  1973 t o  - 100 -  Jan.... Apr. , 197 3',. i " ... The N.C.P.C. r e f u s e d to go ahead w i t h the p r o j e c t under the l i c e n c e conditions. I t i s my o p i n i o n t h a t the Department should have ordered the N.C.P.C. t o proceed a t once. Late i n A p r i l , I had t o f l y t o Ottawa and meet once more with the N.C.P.C. and persuade them t o go ahead though the c o n d i t i o n s of the water l i c e n c e remained u n a l t e r e d . I t was obvious, t h e r e f o r e , a f t e r the d i s c u s s i o n , t h a t the p r o j e c t should have commenced i n January. 17  The  f o l l o w i n g account o f events l e a d i n g t o the  i s provided  decision  i n the Dalby Report:  NCPC Management advised the Commission on March 28, 1973 t h a t "Management s t u d i e s c a s t s e r i o u s doubts on the a d v i s a b i l i t y o f proceeding at A i s h i h i k under the c o n s t r a i n t s imposed i n the recommendations, which, without m o d i f i c a t i o n , would r e s u l t i n making the small A i s h i h i k p r o j e c t uneconomic". Mr. Digby Hunt — "suggested t h a t the Commission would be w i l l i n g t o take the r i s k o f proceeding w i t h the f u l l A i s h i h i k p r o j e c t i f c e r t a i n o f the c o n d i t i o n s were r e l a x e d and d e f i n i t e assurances could be given by the Water Board as t o f u t u r e use o f water so as t o make the p r o j e c t economic. D e c i s i o n o f Commission A p r i l 9, 1973 "... i t was agreed t o proceed with A i s h i h i k power development a t 33MW c o n d i t i o n a l upon r e c e i p t o f the l e t t e r of i n t e r p r e t a t i o n from Mr. Brandon", Chairman o f the Yukon T e r r i t o r y Water Board. The Yukon T e r r i t o r y Water Board agreed t o grant NCPC a water l i c e n c e on A p r i l 24, 1973 w i t h certain conditions. A f t e r c o n s i d e r i n g the c o n d i t i o n s o f the l i c e n c e and the content o f the A p r i l 24 l e t t e r from the Chairman, Yukon T e r r i t o r y Water Board, Mr. J . M. Lowe, General Manager, NCPC, recommended t h a t t h e Commission should "... proceed w i t h the A i s h i h i k power development a t 33MW c a p a c i t y , i n the b e l i e f t h a t the Water Board w i l l r e l a x the i n i t i a l r e s t r i c t i o n s g r a n t i n g a l a r g e r storage range and  - 101  -  by r e d u c i n g the r e q u i r e d q u a n t i t y of compensation flow to values which- w i l l make t h i s development the most economic of the p r e s e n t l y a v a i l a b l e a l t e r n a t i v e s " , 18  The  delay  i n making t h i s d e c i s i o n to proceed w i t h  c o n s t r u c t i o n may  have had  an important e f f e c t on  the  c o s t of the p r o j e c t , s i n c e NCPC chose to avoid making expenditures d u r i n g t h i s time, p e r i o d on d e t a i l e d engineering  design  and  other  c o n s t r u c t i n g the. project.. t h a t i t was  very  likely  for  NCPC appeared to have, b e l l eyed  t h a t i t would not c o n s t r u c t  p r o j e c t under the c o n d i t i o n s recommendations, and  f i n a l preparations  imposed .by the WJater Board' s  t h a t i t was  avoid such, expenditures,  the.  therefore- prudent to  As the Dalby Report a l s o  mentions: NCPC management h e l d back on commitments f o r d e t a i l e d e n g i n e e r i n g to h o l d down c o s t s i n t h e event t h a t a s u i t a b l e l i c e n c e c o u l d not he obtained, 19  When the d e c i s i o n was i t was  taken to proceed with, c o n s t r u c t i o n ,  a l s o determined t h a t t h e p r o j e c t should  be. completed  i n time to meet the w i n t e r demands of 19.74'-5 which allowed f  a c o n s t r u c t i o n p e r i o d of o n l y twenty months,  NCPC  embarked upon t h i s c o n s t r u c t i o n schedule eyen. though d e t a i l e d preparations  had  not been completed,  combination of p o s s i b l y inadequate p r e p a r a t i o n s very  t i g h t scheduling  may  have had  a, very  The a,nd  important  on the f i n a l c o s t of the. p r o j e c t , as shown i n the f o l l o w i n g s e c t i o n on the c o s t overrun.  effect  VIII.  SUMMARY  NCPC's r e q u e s t s decreased the by  f o r an i n c r e a s e d  compensation  storage  r a n g e and  f l o w s were n o t g r a n t e d by  Water B o a r d , due t o a l a c k o f i n f o r m a t i o n NCPC.  licence it  102 -  supplied  The Water B o a r d d i d d e c i d e t o i s s u e t o permit construction  considered  that there  a water  of the project  because  was "an u r g e n t n e e d f o r more 20  power d e v e l o p m e n t and NCPC h a d no a l t e r n a t e  The  conditions  that  t h e Water B o a r d p l a c e d  a p p e a r t o have b e e n h e a v i l y  licence  consideration As  a result,  on  detailed  April  Professor  the r e s t r i c t i o n s  t o be v e r y  severe,  preparations  Kuiper.  and i t a p p a r e n t l y  to avoid until  given  imposed b y t h e w a t e r  t o abandoning the p r o j e c t i tdecided  i n the licence  i n f l u e n c e d .by a d v i c e  t o i t by i t s own c o n s u l t a n t ,  NCPC c o n s i d e r e d  plans".  making  gave  serious  altogether. expenditures  t h e d e c i s i o n was made i n  1973 t o p r o c e e d w i t h c o n s t r u c t i o n  of the project.  - 103 CHAPTER  FIVE  REFERENCES AND  NOTES  1.  Yukon T e r r i t o r y Water B o a r d , 28 November 1972, p.3.  2.  L. B r a n d o n  3.  R. C h o a t e , V i c e P r e s i d e n t , H e a r i n g T r a n s c r i p t , p.45.  4.  R.  5.  L. D i c k s o n , C h a i r m a n , E l e c t r i c a l t o L. B r a n d o n , 9 J a n u a r y 1973.  6.  M. P h i l l i p s , T e s l i n T r a n s c r i p t , p.51.  7.  L. B r a n d o n t o J . C h r e t i e n , 1 F e b r u a r y 1973, i n D a l b y R e p o r t , A t t a c h m e n t 4.  8.  E . K u i p e r , " R e p o r t , A i s h i h i k R i v e r Power D e v e l o p m e n t " , F e b r u a r y 1973, p.7. I t i s n o t known what o p p o r t u n i t y was g i v e n t o NCPC t o r e s p o n d t o P r o f e s s o r K u i p e r ' s r e p o r t b e f o r e t h e Water B o a r d made i t s d e c i s i o n .  9.  E. K u i p e r , "Report, A i s h i h i k R i v e r p.1,2.  Choate  t o D.  " M i n u t e s o f M e e t i n g No.  Hunt, 25 M a r c h 1974,  t o L. B r a n d o n ,  p.2.  Yukon E l e c t r i c ,  5 January  Licencing  1973.  Public U t i l i t i e s  Board  Exploration Ltd., Licencing Hearing  Power  p.2,3,4.,  Development",  10.  Ibid.,  11.  I b i d . , p.7,8.  12.  J . C h r e t i e n , t o C h i e f E. Smith, P r e s i d e n t , I n d i a n B r o t h e r h o o d , 17 A p r i l 1973.  13.  L. B r a n d o n  14.  NCPC, " A p p r a i s a l o f t h e P r o p o s e d C o n d i t i o n s " , F e b r u a r y 1973, p.7, A t t a c h m e n t 5.  15.  I b i d . , p.5,6.  16.  Ibid.,  17.  L. B r a n d o n  18.  R.  19.  Ibid.,  20.  L. B r a n d o n  N.  5",  p.7.  t o D.  Hunt, 25 M a r c h 1974,  Yukon  p.3.  A i s h i h i k Water L i c e n c e i n Dalby Report,  p.3.  Dalby  t o D.  Hunt, 25 M a r c h 1974,  & Associates,  p.3.  Dalby Report,  p.13,14.  p.4. t o D.  Hunt, 25 M a r c h 1974,  p.3.  -  104 -  CHAPTER SIX CONSTRUCTION OF THE PROJECT AND I. Part  COMPLIANCE WITH LICENCE CONDITIONS B o f the water l i c e n c e i s s u e d  required  plans,  schedules.  1.  The l i c e n c e e s h a l l f i l e w i t h t h e Water B o a r d f i n a l d e s i g n and c o n s t r u c t i o n p l a n s and s p e c i f i c a t i o n s f o r e a c h s t r u c t u r e and work, i n c l u d i n g c o n s t r u c t i o n camp p l a n s and f a c i l i t i e s , t o be a p p r o v e d by t h e . B o a r d p r i o r t o the s t a r t o f c o n s t r u c t i o n o f each structure....  4.  The l i c e n c e e s h a l l f i l e w i t h t h e W a t e r Board f o r i t s approval a d e t a i l e d construction schedule i n c l u d i n g planned release patterns during construction.  5.  The l i c e n c e e on  Territorial  According  shall  the construction  NCPC was a l s o r e q u i r e d  provide  progress  reports  works on a r e g u l a r  t o comply w i t h  L a n d s A c t and  basis.  1  a l l conditions of  Regulations.  t o t h e Water B o a r d C h a i r m a n , NCPC d i d n o t  comply w i t h a l l o f t h e c o n d i t i o n s water l i c e n c e nor with Territorial  that  24, 1973  q u a r t e r l y p r o g r e s s r e p o r t s and  planned water r e l e a s e  Mr.  on A p r i l  t h a t NCPC s u b m i t t o t h e Water B o a r d a l l  construction  the  THE COST OVERRUN  of Part  B of the  some o f t h e r e q u i r e m e n t s o f t h e  L a n d s A c t and R e g u l a t i o n s .  B r a n d o n w r o t e t o NCPC, i n f o r m i n g  On J u l y  27, 1973,  the General  c e r t a i n r e q u i r e m e n t s were n o t b e i n g  met:  The c o n d i t i o n s o f t h e w a t e r l i c e n c e f o r t h i s p r o j e c t r e q u i r e t h a t q u a r t e r l y r e p o r t s be provided t o the Board. The f i r s t r e p o r t i s now due, and a p r o p e r c o n s t r u c t i o n s c h e d u l e i s long overdue.  Manager  - 105 P a r t 'B' o f t h e w a t e r l i c e n c e r e q u i r e s y o u f i l e p l a n s w i t h t h e B o a r d and t h a t y o u r e c e i v e a p p r o v a l from t h e Board p r i o r t o construction. T h e r e have been a number o f i n s t a n c e s where work h a s p r e c e d e d t h e f i l i n g of plans without p r i o r approval.,... I have n o t r e c e i v e d any i n s t r u c t i o n s f r o m t h e M i n i s t e r r e q u i r i n g e x e m p t i o n f o r t h e N.C.P.C. from f u l l c o m p l i a n c e w i t h t h e T e r r i t o r i a l Land A c t and R e g u l a t i o n s , and t h e p r e s e n t f a i l u r e o f t h e N.C.P.C. t o comply w i l l i n g l y w i t h t h e s e A c t s seems t o r e v e a l an a t t i t u d e w h i c h i s n o t f o u n d h e r e when d e a l i n g w i t h i n d u s t r i e s l i k e o i l and m i n i n g companies and w i t h s u c h government D e p a r t m e n t s as P u b l i c Works. Your w i l l i n g compliance i s r e q u i r e d . R e c e n t l y y o u r o f f i c e s e n t some t e l e x e s t o m y s e l f r e q u e s t i n g f u r t h e r enlargement o f the canal c l e a r i n g b e y o n d t h e 300 f e e t shown i n y o u r p l a n s . I now u n d e r s t a n d y o u a r e r e q u e s t i n g an i n c r e a s e b e y o n d 400 f e e t f o r t h i s . You s h o u l d s e e t o i t that j u s t i f i c a t i o n f o r this i s provided. I m e n t i o n t h i s b e c a u s e i t i s t y p i c a l o f t h e demands made o f t h e B o a r d f o r e n l a r g e m e n t o f v a r i o u s p a r t s o f t h i s hydro e l e c t r i c p r o j e c t . 2  Mr.  Brandon  also  later  reported  t o Mr. Hunt  that:  "there  have b e e n many b r e a c h e s o f L a n d Use R e q u i r e m e n t s on the p r o j e c t  and t h e Water,  L a n d s and F o r e s t s  had t o c o n t i n u a l l y p r e s s u r e  Staff  have  t h e N.C.P.C. t o p r o d u c e  plans  In c o n t r a v e n t i o n o f t h e terms o f t h e water l i c e n c e ,  which  3 and p r o g r e s s  stipulated Aishihik the  reports".  that  " t h e r e g u l a t e d mean m o n t h l y l e v e l s a t  Lake s h a l l  n o t e x c e e d 3 0 0 2 . 5 f e e t " , NCPC  level of Aishihik  L a k e above  most o f t h e summer o f 1975.  this  elevation  This action  raised during  constitutes  the  106  r-.  most s i g n i f i c a n t v i o l a t i o n  requirements t h a t took p l a c e  of legal  during  and a d m i n i s t r a t i v e  the construction  of the p r o j e c t .  The  following  contained  "Statement o f A l l e g e d V i o l a t i o n " i s  i n a r e p o r t on t h e c a s e b y t h e N o r t h e r n  Natural  R e s o u r c e s and E n v i r o n m e n t B r a n c h o f DIAND: Between 13 May 1975 and 30 September 1975 t h e N o r t h e r n Canada Power C o m m i s s i o n d i d u n l a w f u l l y r e g u l a t e t h e mean m o n t h l y l e v e l s a t A i s h i h i k Lake i n e x c e s s o f 3002.5 f e e t i n c o n t r a v e n t i o n t o t h e i r Water Use L i c e n c e Y3L5-0001 and t h e N o r t h e r n I n l a n d Waters A c t s e c t i o n 3 ( 2 ) . 4  In  late  J u l y t h e maximum e l e v a t i o n was r e a c h e d a t 3004.5 5  f e e t , which i s only According held  t o s u b m i s s i o n s made a t t h e t h i r d  i n August  extensive  a few f e e t above t h e h i s t o r i c  1975, t h i s  erosion  populations  part of Aishihik V i l l a g e .  Fisheries  still  hearing,  resulted i n  o f the s h o r e l i n e o f A i s h i h i k Lake,  c a u s e d damage t o f i s h flooded  increase  high.  and M a r i n e S e r v i c e  and w i l d l i f e , and A s u b m i s s i o n by t h e  o f t h e Department o f t h e  Environment mentioned t h a t : ... t h e N o r t h e r n Canada Power C o m m i s s i o n h a s a l l o w e d w a t e r l e v e l s on A i s h i h i k L a k e t o f a r exceed those s p e c i f i e d i n i t s i n t e r i m water l i c e n c e and has p r e c i p i t a t e d s e v e r e s h o r e l i n e e r o s i o n and s l u m p i n g . These o c c u r r e n c e s a r e s u g g e s t i v e o f contempt f o r t h e terms o f t h e i r l i c e n c e and f o r t h e e n v i r o n m e n t a l c o n s e q u e n c e s of t h e i r a c t i o n s . 6  -  107 -  S y n e r g y West, a p r i v a t e c o n s u l t i n g hired  by t h e Yukon N a t i v e  impact o f t h e proposed reported  f i r m w h i c h was  Brotherhood  t o assess the  l i c e n c e on A i s h i h i k  Village,  that:  ... e r o s i o n i s o c c u r r i n g , one s p i r i t h o u s e has f a l l e n i n t o t h e l a k e , o t h e r s a r e e n d a n g e r e d . The d o c k h a s been a l m o s t i n u n d a t e d ; t h e f r e s h water s p r i n g , t h e v i l l a g e ' s water supply, has b e e n r e n d e r e d u s e l e s s and f l o o d e d , s e v e r a l s t r u c t u r e s have b e e n p a r t i a l l y i n u n d a t e d , and a c c e s s i b i l i t y t o c a b i n s h a s b e e n c u t o f f . ... M a s s i v e s i l t i n g a s a c o n s e q u e n c e o f slumpage and e r o s i o n h a s o c c u r r e d , w i t h t h e n e g a t i v e c o n s e q u e n c e s a s p r e d i c t e d by t h e F i s h e r i e s . I n f a c t , NCPC h a s f a i l e d t o p o l i c e t h e i r own a c t i v i t i e s , and r a i s e d t h e l e v e l o f t h e l a k e i n e x c e s s o f t h e l e v e l g r a n t e d by t h e i r w a t e r l i c e n c e , w i t h no a d e q u a t e w a r n i n g t o t h e A i s h i h i k Band s o t h a t t h e y m i g h t p r o t e c t t h e i r p r o p e r t y . 7 The  e f f e c t s on A i s h i h i k V i l l a g e  increased  water l e v e l s  y e t NCPC d i d n o t i n f o r m i n c r e a s e s were t o t a k e  According  a p p e a r t o have b e e n  significant,  t h e A i s h i h i k Band t h a t t h e place.  to the Northern Natural  Branch r e p o r t , t h e main r e a s o n s lake  r e s u l t i n g from t h e  R e s o u r c e s and E n v i r o n m e n t  f o r the increase  l e v e l were t h e p o o r p r o g r e s s  on t h e c o n t r o l  i nthe structures  a t Canyon and A i s h i h i k L a k e s and t h e p o w e r h o u s e , and higher  than normal r u n o f f s d u r i n g  NCPC d e c i d e d  that  i n order  the e a r l y  t o e n s u r e an a d e q u a t e  of  storage  a t t h e r e s e r v o i r , i t would a l l o w  of  the lake  of  s u b s e q u e n t l y making r e l e a s e s  to rise  summer.  t o 3002.5 f e e t , w i t h to hold  reserve  the l e v e l  the i n t e n t i o n the lake a t  that  elevation.  p l a n was n o t f i l e d  108 -  Contrary with  t h e Water  When NCPC r a i s e d t h e l a k e elevation, and of  runoff  licence, this  Board.  t o t h e maximum  allowable  t h e c o n t r o l s t r u c t u r e s were n o t y e t c o m p l e t e  were n o t t h e r e f o r e flow.  t o t h e water  able  to withstand  high  rates  D u r i n g t h e e a r l y summer an u n e x p e c t e d  peak o c c u r r e d ,  second  and i t was d e t e r m i n e d t h a t  enough w a t e r t o m a i n t a i n  the lake  levels  could  releasing  cause  damage t o t h e two c o n t r o l s t r u c t u r e s .  However, t h e N o r t h e r n N a t u r a l Branch r e p o r t by  R e s o u r c e s and E n v i r o n m e n t  found t h a t i n s u f f i c i e n t  NCPC t o r e d u c e t h e i n c r e a s e s .  a c t i o n was t a k e n  As t h e r e p o r t  concludes:  The l i c e n c e d l a k e l e v e l c o u l d have b e e n r e a c h e d 1 J u l y , 1975 w i t h t h e r e l e a s e o f t h e maximum p o s s i b l e f l o w s . However, t h e maximum p o s s i b l e was n o t r e l e a s e d b e c a u s e t h e Canyon L a k e o v e r f l o w w e i r h a d n o t b e e n inspected. For safety reasons t h i s explanation i s a c c e p t a b l e , however, t h e r e i s no apparent j u s t i f i c a t i o n f o r the long delay i n inspecting t h e s t r u c t u r e ( f r o m 25 June t o 21 J u l y ) . From 21 J u l y t o 30 September, N.C.P.C. r e l e a s e d l e s s t h a n t h e maximum p o s s i b l e . Except f o r t h e p e r i o d when t h e breakdown o c c u r r e d a t t h e power p l a n t t h e r e does n o t a p p e a r j u s t i f i c a t i o n for this action. I n summary, i t d o e s n o t a p p e a r t h a t N.C.P.C. took a l l necessary steps t o reduce t h e lake l e v e l s o f A i s h i h i k when t h e o p p o r t u n i t y was a v a i l a b l e a f t e r 2 5 June 19 7 5 a n d t h e p r o b l e m was n o t a t t a c k e d w i t h a l l due d i l i g e n c e . 9  -  109 -  E v i d e n t l y NCPC d i d n o t comply w i t h a l l a d m i n i s t r a t i v e and  legal  requirements during  particularly  the construction  as t h e y r e l a t e d t o p r o v i d i n g  Board w i t h plans  and r e p o r t s ,  L a k e was n o t i n c r e a s e d  II. A.  the l e v e l  above t h e l i c e n c e d  t o take  of Aishihik limit.  THE COST OVERRUN Introduction  The  cost  $17  million  of about line).  of the A i s h i h i k project at the s t a r t  $39 m i l l i o n  increased  of construction  (both  excluding  from  i n the cost  an o v e r r u n  of the project,  should  cost  the transmission o r a 130%  i f i t i s accepted  be c a l c u l a t e d a s b e i n g  between t h e e s t i m a t e d c o s t  approximately  to a f i n a l  The o v e r r u n amounts t o $22 m i l l i o n ,  increase that  t h e Water  and t h e n f a i l e d  adequate measures t o ensure t h a t  period,  at the start  the d i f f e r e n c e  of construction  and  the f i n a l  cost.  The  c o s t o f t h e p r o j e c t h a s t o be b o r n e s o l e l y  by e l e c t r i c  power c o n s u m e r s i n t h e Yukon, and h a s r e s u l t e d i n significant  In o r d e r the  t o account  overrun,  during  three  1976, a f t e r  Engineering and  increases  i n power  rates.^®  f o r and e x p l a i n different  reports  the reasons were  compiled  t h e p r o j e c t was c o m p l e t e d .  provided  a report,"Analysis  t h e NCPC management c o m p i l e d  behind  of Cost  Crippen Overrun",  t h e R e p o r t on A i s h i h i k . ^  - no Another  document, known a s t h e D a l b y  Report,  was w r i t t e n  12 by  an i n d e p e n d e n t  intended  consultant.  t o "review  the p u b l i c project",  The D a l b y  Report  and r e p o r t on t h e f a c t s  was  surrounding  concern  surrounding the cost of the A i s h i h i k  as s t a t e d  i n t h e terms o f r e f e r e n c e f o r t h e  13 report. B.  Formulation o f Cost  The  following  cost and  table provides a h i s t o r i c a l  estimates  constructing the project,  Estimated July  7  October  4  March —  Cost*  Source  $9 m i l l i o n  Crippen Engineering A n a l y s i s o f Cost Overrun, A p p e n d i x 1, p . l .  million  application  Ibid. submitted  $12.9 m i l l i o n  May 2 4 . — F i r s t October  events.  D. S t e e n , " C o s t C o m p a r i s o n : Aishihik River vs. N o r d e n s k i o l d C o a l " , NCPC R e p o r t on A i s h i h i k , s . 2 .  First  April  and o f r e l a t e d  $7 m i l l i o n  December 28...$11 1972  record of the  formulated during the course o f planning  Date 1971  Estimates  water  licence  19....$16.2 m i l l i o n  t o Water  Ibid,  p. 2.  hearing. Ibid.  (size of project  increased 1973  January  17 —  March 2 0 April  12  t o 33  MW).  Second h e a r i n g h e l d . $16.75 m i l l i o n  —  Board.  Report  on A i s h i h i k ,  s.8,p.3.  NCPC d e c i d e s t o b e g i n c o n s t r u c t i o n o f p r o j e c t .  O c t o b e r 19  —  "The f i r s t r e a l i n d i c a t i o n o f A i s h i h i k c o s t s g e t t i n g o u t o f hand came i n an O c t o b e r 19, 1973 letter (from) D.R.Duguid, P.Eng., P r o j e c t Manager, C r i p p e n Engineering..." Dalby Report, p.14.  December  $17.82 m i l l i o n  1974  October  1975  March  $32.9  1976  January  $39  * Excluding  It  10  —  appears t h a t the  T h e r e i s no reviewed The by  and  assessed the  hearing  the  C.  Economic  One  set of  c o n s i s t s of rates 9.5%  the  accuracy of  January  factors that  17,  part,  responsibility  organization  the  cost  estimates.  questioned  Public U t i l i t i e s  Board  197 3.  contributed  changes i n the  the  Report.  s.8,p.  of managing i t s c o n s t r u c t i o n .  independent  the  most  Factors  14 Dalby  and  f o r f i n a n c i n g the during  an  w h i c h had  e s t i m a t e s were, however,  on  Aishihik,  e s t i m a t e s were, f o r t h e  p r o j e c t and  b o t h Yukon E l e c t r i c the  R e p o r t on  Cost Overrun, p.11.  line.  cost  the  Analysis of A p p e n d i x 1,  million  evidence that  accuracy of  during  million  Crippen Engineering,  of both designing  Cost Overrun, p.6.  " O c t o b e r 10, 1974 m e e t i n g o f t h e C o m m i s s i o n Mr. Lowe gave l a t e s t c o s t e s t i m a t e s a t $28.5 m i l l i o n f o r t h e power p r o j e c t . . . " Dalby Report, p.15.  transmission  p r e p a r e d by  A n a l y s i s of A p p e n d i x 1,  to the  cost  n a t i o n a l economy.  p r o j e c t rose  construction  period,  Interest  from about according  overrun  6% to  to the  Labour c o s t s The  112  -  a p p e a r t o have b e e n an  NCPC Management r e p o r t m e n t i o n s  important  factor.  that:  Labour T h i s was a most o b v i o u s c u l p r i t i n n e a r l y every area of the works. Union j u r i s d i c t i o n , l a r g e r than a n t i c i p a t e d labour f o r c e s , e s c a l a t i o n o f s a l a r i e s and wages a l l c o n t r i b u t e d to i n c r e a s e d c o s t s . 15 Other c o s t s the  also  increased  Crippen report  at unprecedented r a t e s .  As  states:  The y e a r 1974 saw t h e w o r s t c o s t e s c a l a t i o n experienced f o r decades, both d o m e s t i c a l l y and internationally. S t a t i s t i c s Canada shows t h e H y d r o i n d e x up 16%, s t e e l p r i c e s up 46%, l a b o u r up 20%. I n c r e a s e s i n f r e i g h t and s u p p o r t i v e s e r v i c e s , together w i t h the h i g h volume o f c o n s t r u c t i o n work, o f t e n r e s p o n s i b l e f o r low c o n t r a c t o r and s u p p l i e r i n t e r e s t w i t h r e s u l t i n g h i g h e r b i d s , r e s u l t e d i n most c o n s t r u c t i o n p r o j e c t s , and p a r t i c u l a r l y t h o s e i n i s o l a t e d northern locations overrunning estimates considerably. 16 However, no of  the  quantitative analysis  cost overrun  i n f l a t i o n was on  D. As  the  The  cost  total  i n any  of  the  proportion  unforeseen  three  reports  written  overrun.  i n the  t h e main t u n n e l the  i s a t t r i b u t a b l e to  provided  Tunnel  stated  s h o w i n g what  Contract NCPC management r e p o r t , contract  cost overrun  overruns  in  compose a l a r g e p r o p o r t i o n  f o r the  project.  The most s i g n i f i c a n t c o s t o v e r r u n i s t h e m a i n t u n n e l c o n t r a c t which i n c r e a s e d from $4.2 m i l l i o n t o $14.3 m i l l i o n . . . . D o u b l i n g t h e l a b o u r f o r c e t o s a t i s f y u n i o n r e q u i r e m e n t s compounded by s l o w p r o g r e s s i n t u n n e l e x c a v a t i o n plus h i g h wage e s c a l a t i o n s a r e t h e p r i n c i p a l c a u s e s o f the c o s t o v e r r u n i n t h i s c o n t r a c t . 17  of  E.  The  The  construction  factor  Construction  113  -  Schedule  s c h e d u l e a p p e a r s t o have b e e n a m a j o r  c o n t r i b u t i n g to  the  overrun., ,  construction  i t was  be  i n t i m e t o meet t h e w i n t e r demands o f  completed  a time p e r i o d  of  anticipated that  When NCPC began  t w e n t y months.  This  construction  s c h e d u l e was  considered  construction  p r o g r a m , and  was  the  need to  install  the  winter of  the  p r o j e c t was  The  project  and  d i e s e l g e n e r a t o r s had  for  the w i n t e r of  the  use  the  project  would 1974-5,  twenty-month t o be  adopted  a  "crash"  i n order  to  additional d i e s e l generation  1974-5, w h i c h w o u l d become s u r p l u s  prevent for once  completed.  took twenty-rsix  1974-5.  months t o c o m p l e t e ,  t o be The  installed extra  o f d i e s e l g e n e r a t o r s was  NCPC's G e n e r a l Manager, l a t e r  $4  cost  and  operated  r e s u l t i n g from  million.  reported  however,  to the  As  Mr.Lowe,  NCPC  Chairman: Another c o s t r e s u l t i n g from the d e l a y was t h a t i n v o l v i n g the i n s t a l l a t i o n at Whitehorse o f some 7500 kW o f d i e s e l t o meet t h e 1974/75 w i n t e r peak. The c a p i t a l c o s t o f t h i s d i e s e l c a p a c i t y was $2 m i l l i o n and t h e a d d i t i o n a l c o s t o f f u e l i n g and o p e r a t i n g p e a k i n g d i e s e l u n i t s f o r t h e e x t r a y e a r was a f u r t h e r $2 m i l l i o n . ... I t i s n o t e d e l s e w h e r e . . . t h a t t h e key f a c t o r i n the i n c r e a s e d cost i s the delay i n i m p l e m e n t a t i o n of the p r o j e c t from e a r l y 1972 t o mid-1973, a l o n g w i t h t h e a t t e n d a n t n e e d t o r u s h t o c o m p l e t i o n so as t o meet l o a d g r o w t h and m i n i m i z e c o s t l y d i e s e l g e n e r a t i o n . 18  - 114 I t i s perhaps q u e s t i o n a b l e i n d i e s e l generation  whether the  $4  expenses i s a g r e a t e r  million amount  than the c o s t of the c r a s h c o n s t r u c t i o n program, which was  unsuccessfully  implemented .in order  to save, ttjese  expenses.  The  f o l l o w i n g e n t r i e s i n NCPC management's and  r e p o r t s d e s c r i b e how c o s t of the p r o j e c t .  Crippen's  the c r a s h schedule a f f e c t e d The  the  Report on A i s h i h i k s t a t e s :  In order to m a i n t a i n any s o r t of schedule a c r a s h program was necessary on v i r t u a l l y every major aspect of the p r o j e c t . 19 F i n a n c i a l c o n t r o l and e f f i c i e n c y c o n t r o l a t A i s h i h i k was l e s s than optimum due. i n l a r g e p a r t to the i n i t i a l delay followed by panic start. L i t t l e or no time was allowed to assemble and s i t e t r a i n a w e l l rounded f i e l d crew before h e c t i c c o n s t r u c t i o n a c t i v i t y occurred. 20 The d r i v e to meet the completion date v i r t u a l l y converted c o s t c o n t r o l i n t o c o s t a u d i t . 21  And  Crippen Engineering's  " A n a l y s i s of Cost Overrun"  states: End of 1973, , , The most s i g n i f i c a n t f a c t o r a f f e c t i n g both schedule and c o s t at t h i s p o i n t was undoubtedly the delay i n i n i t i a t i o n of the p r o j e c t which had r e s u l t e d i n an unduly a c c e l e r a t e d design and c o n t r a c t p r e p a r a t i o n schedule w i t h the n e c e s s i t y of fragmenting the c o n t r a c t packages; and a schedule so t i g h t t h a t there was a poor chance of making up time l o s t on even one o p e r a t i o n , such as the two months on the access s h a f t . The e x t r a c o s t of overtime and other adjuncts of the r e s u l t i n g c r a s h program were j u s t b e g i n n i n g to show by the end of 1973. 22  - 115 E n t e r i n g t h e y e a r 1974, t h e c h i e f c o n c e r n was t o r e c o v e r t h e t i m e l o s t on e x c a v a t i n g t h e a c c e s s s h a f t , powerhouse and t a i l r a c e t u n n e l , and so t h r e e s h i f t o p e r a t i o n was c o n t i n u e d s e v e n d a y s a week. 23  E v i d e n t l y NCPC m a i n t a i n e d a number o f i m p o r t a n t Not  until  the crash schedule  p r o b l e m s and d e l a y s  even  after  occurred.  t h e summer o f 1974 d i d NCPC a p p a r e n t l y  begin  to q u e s t i o n whether i t c o u l d complete the p r o j e c t i n time.  As s t a t e d i n t h e D a l b y  Report:  NCPC management r e p o r t s t o t h e C o m m i s s i o n on O c t o b e r 10, 1974 t h a t a work s t o p p a g e f r o m J u l y 22, 1974 t o A u g u s t 1, 1974 on t h e A i s h i h i k p r o j e c t "... c a u s e d new d e l a y s and o n - t a r g e t c o m p l e t i o n d a t e now seems u n l i k e l y " .  F.  24  Detailed Preparations  According design  t o the Crippen  report, detailed  engineering  and s p e c i f i c a t i o n w r i t i n g h a d n o t been  completed  when NCPC began c o n s t r u c t i o n o f t h e p r o j e c t . As s o o n as t h e work ( s i c ) t o p r o c e e d was g i v e n i n m i d A p r i l 1973, d e t a i l e d d e s i g n , p r e p a r a t i o n o f s p e c i f i c a t i o n s and c o n t r a c t documents p r o c e e d e d on a c r a s h b a s i s . The work t o be done was i n c r e a s e d by t h e n e c e s s i t y o f f r a g m e n t i n g t h e work i n t o s m a l l p a c k a g e s , so t h a t t h e s e c o u l d be c a l l e d as soon as t h e d e s i g n had p r o g r e s s e d f a r enough, w i t h o u t w a i t i n g f o r f u r t h e r d e s i g n work n o t y e t c o m p l e t e d . 25  The  twenty-month c o n s t r u c t i o n s c h e d u l e  been v e r y  optimistic  preparatory  a p p e a r s t o have  i n view o f the f a c t  that  these  a r r a n g e m e n t s h a d n o t been c o m p l e t e d  prior  to the  start  of  116  -  construction.  Completion of  a r r a n g e m e n t s p r i o r t o the. B e g i n n i n g o f was  considered  e s s e n t i a l i f the  completed w i t h i n the  the  Crippen report  these  construction  p r o j e c t was  to  be  t w e n t y - m o n t h time, p e r i o d .  As  states;  The o r i g i n a l s c h e d u l e f o r t h e p r o j e c t w a s f o r 26 months f r o m i n i t i a t i o n t o c o m m i s s i o n i n g . When i t became a p p a r e n t i n 1972 t h a t t h e p r o j e c t i n i t i a t i o n w o u l d be d e l a y e d by t h e r e g u l a t o r y p r o c e s s , t h i s s c h e d u l e was r e d u c e d t o a c r a s h p r o g r a m o f 20 months i n l i g h t o f the n e c e s s i t y of m e e t i n g the continued h i g h r a t e of l o a d growth. T h i s program c o u l d be a c h i e v e d o n l y i f no m a j o r p r o b l e m s o r d e l a y s o c c u r r e d , and i f s u f f i c i e n t d e t a i l e d d e s i g n and s p e c i f i c a t i o n w r i t i n g had b e e n done b e f o r e initiation. With, a f u r t h e r d e l a y o f one. y e a r i n o b t a i n i n g a l i c e n c e t h e 20 m o n t h s c h e d u l e was r e t a i n e d and p r o j e c t i n i t i a t i o n was necessary by M a r c h 19-73, With a u t h o r i z a t i o n to proceed delayed a f u r t h e r month, o n l y 19 months were a v a i l a b l e t o have t h e f i r s t u n i t c o m m i s s i o n e d b e f o r e Xmas o f 1974 and p r e p a r a t i o n o f d e s i g n s and c o n t r a c t documents was l i t t l e a d v a n c e d , e x c e p t i n g t h o s e f o r t h e t u r b i n e s and g e n e r a t o r s , (emphasis addedL  According why  to the  NCPC management r e p o r t ,  detailed preparations  prior  to the  start  s u r r o u n d i n g the NCPC a v o i d  of  had  not  been  c o n s t r u c t i o n was  l i c e n c i n g process  s p e n d i n g money on  such  the  26  reason  completed that  "dictated"  the  uncertainty  that  preparations,  Delays i n a c q u i r i n g the land r e s e r v a t i o n combined w i t h t h e w a t e r l i c e n c e d e l a y s prevented the intended s c h e d u l i n g of the project. N o t e t h a t i f w a t e r l i c e n c e had been o b t a i n e d "on a p p l i c a t i o n " as c o n t e m p o r a r y laws p r o v i d e d , p r o j e c t e n g i n e e r i n g and f u r t h e r i n v e s t i g a t i o n w o u l d have b e e n i n i t i a t e d a t a " f u l l s p e e d a h e a d "  -  117  -  basis. I n s t e a d , t h e l a c k o f a n s w e r s and i n d e c i s i o n d i c t a t e d a much s l o w e r a p p r o a c h t o e n s u r e t h a t e n g i n e e r i n g money was n o t w a s t e d i n c a s e a s u i t a b l e l i c e n c e was n o t forthcoming. U n d o u b t e d l y t h e l o s s o f more t h a n one y e a r c a u s e d by t h e s e d e l a y s (which r e s u l t e d i n tightened schedules f o r design and c o n t r a c t s p e c i f i c a t i o n / a w a r d p r o c e s s e s and c o n s t r u c t i o n ) was t h e key f a c t o r i n t h e project's higher cost. 27  G.  I n f l u e n c e o f Water L i c e n c e  Both the concluded was  NCPC management and t h a t the major  the d e l a y  i n the  report prepared  by  Delays  Crippen  factor  issuance  Engineering  causing  of a water  the  reports  overrun  licence.  NCPC management c o n c l u d e s  The  that:  The s i n g l e most s i g n i f i c a n t f a c t o r c o n t r i b u t i n g to c o s t overrun i s undoubtedly the d e l a y i n i n i t i a t i o n , or simply delay i n o b t a i n i n g a water l i c e n c e . T h i s s i n g l e f a c t o r i s a l s o the key f a c t o r i n t h a t t h e d e l a y r e s u l t e d i n a s i t u a t i o n w h i c h b r o u g h t a b o u t most o f t h e other... factors. F u r t h e r study would r e v e a l t h e w e i g h t o f t h i s s i n g l e f a c t o r t o be w e l l o v e r 60%. 28  The  Crippen  Engineering  report similarly  concludes  that:  Delayed Initiation T h i s was t h e s i n g l e most i m p o r t a n t f a c t o r and was a d i r e c t r e s u l t o f t h e d e l a y i n o b t a i n i n g a water l i c e n c e . I t was t h e key f a c t o r because i n t u r n i t r e s u l t e d i n the a p p l i c a t i o n o f t h e o t h e r most s i g n i f i c a n t i n f l u e n c e s , i n c l u d i n g the delay of c o n s t r u c t i o n i n t o t h e peak i n f l a t i o n p e r i o d o f 1974/75, d e l a y o f f i n a n c i n g i n t o a p e r i o d o f much h i g h e r i n t e r e s t r a t e s , and t h e n e c e s s i t y of a c o s t l y c r a s h program t o m a i n t a i n the c o m p l e t i o n d a t e r e q u i r e d t o meet t h e g r o w i n g l o a d on t h e W h i t e h o r s e s y s t e m . 29  The  a n a l y s i s used  applied  118 -  i n t h e NCPC management r e p o r t  as t h e base f i g u r e f o r c a l c u l a t i n g t h e c o s t  o v e r r u n t h e e s t i m a t e t h a t was p r e p a r e d w h i c h was when NCPC o r i g i n a l l y construction  intended  i n e a r l y 1972, to start  of the project.  In a t t e m p t i n g t h e d i s t r i b u t i o n o f o v e r r u n s , t h e f i r s t p a r a m e t e r t o be d e c i d e d must be the p o i n t i n time a t which r e f e r e n c e s f o r b o t h s c h e d u l e and e s t i m a t e have b e e n e s t a b l i s h e d . For A i s h i h i k , t h i s "point i n time" i s e a r l y 1972, t h e N.C.P.C.'s s c h e d u l e d d a t e o f s t a r t of c o n s t r u c t i o n . The b a s e e s t i m a t e f o r t h i s " p o i n t i n t i m e " i s $13.9 m i l l i o n f o r a 3 u n i t 33 MW i n s t a l l a t i o n , a s c o n t a i n e d i n t h e A p r i l , 1972 e n g i n e e r i n g r e p o r t . 30 By  using  early  as t h e base f i g u r e t h e e s t i m a t e p r e p a r e d i n  1972, t h e w a t e r  l i c e n c e delays  could  be  included  i n NCPC's a n a l y s i s .  A  letter  Mr.  t o Mr. J . S m i t h , C h a i r m a n o f NCPC  from  Lowe, NCPC's G e n e r a l Manager on M a r c h 29, 197 6,  states too  sent  that  the.cost  low, b u t t h a t  overrun s t i l l  estimates  f o r the project  a substantial proportion  r e s u l t e d from d e l a y s  were  of the  i n obtaining the  w a t e r l i c e n c e , and t h a t NCPC c u s t o m e r s s h o u l d n o t have t o b e a r t h e s e  costs.  ... t h e benchmark e s t i m a t e f o r t h e 19 72 s t a r t i s $14 m i l l i o n . B a s e d on a c t u a l b i d d i n g and u n f o r e s e e n (now known) c o n d i t i o n s ( m a i n l y u n d e r g r o u n d ) and g e n e r a l e s c a l a t i o n d u r i n g t h e 1972 and 1973 p e r i o d , t h e $14 m i l l i o n e s t i m a t e may have been t o o low by some $6 t o $10 m i l l i o n . I am s a y i n g , t h e r e f o r e , t h a t t h e p r o j e c t w o u l d have c o s t  -  119 -  $2Q-$2.4 m i l l i o n i f i t h a d k e e n a l l o w e d t o p r o c e e d a s p l a n n e d by NCPC, The p r o j e c t , however, was d e l a y e d o v e r a y e a r and c o s t some $40 m i l l i o n . I t i s my o p i n i o n t h a t t h e additional cost of the Aishihik- plant, a r i s i n g out o f t h e d e l a y i n o b t a i n i n g a water licence., s h o u l d be b o r n e by t h o s e r e s p o n s i b l e f o r the. d e l a y and n o t NCPC c o n s u m e r s , 31  On A p r i l  10, 1976, Mr, S m i t h w r o t e t o t h e M i n i s t e r ,  J u d d B u c h a n a n , and p r o p o s e d t h a t assist  i n bearing  the cost  the federal  government  o f the Aishihik., s i n c e the  federal  government was r e s p o n s i b l e  delays,  and n o t NCPC,  f o r t h e water  licence  The e l e c t r i c i t y consumer i n Yukon must s u r e l y b e e n t i t l e d t o some, a s s i s t a n c e in. . b e a r i n g t h i s burden o f t h e h i g h e r c o s t r e s u l t i n g from delay i n o b t a i n i n g a water l i c e n c e . Your b e s t e f f o r t s on b e h a l f o f t h o s e u s e r s t o s e c u r e some a l l e v i a t i o n o f t h e c a p i t a l c o s t s of A i s h i h i k i s e a r n e s t l y sought, 32  To  summarize, t h e c h a i r m a n o f t h e C o m m i s s i o n f o r NCPC,  NCPC management, and C r i p p e n E n g i n e e r i n g , that in  t h e m a j o r c a u s e o f t h e c o s t o v e r r u n was t h e d e l a y  t h e i s s u e o f a water  this  a r g u m e n t , the- c o s t  originally  intended  licence,  In order  estimate prepared  start  of construction  was u s e d a s t h e benchmark f i g u r e , r a t h e r estimate prepared p r i o r to the s t a r t Using  a l l argued  this  federal  alleviate  f o r the i n e a r l y 1972 than the l a s t  of construction.  argument, NCPC t h e n r e q u e s t e d  government p r o v i d e  to justify  that the  a s s i s t a n c e , t o NCPC t o  t h e burden o f t h e c o s t  overrun.  H. On  The  120  Water B o a r d ' s  J u l y 7,  197 6,  Mr.  Reaction B.  B o y d , new  W a t e r B o a r d , w r o t e t o Mr. on  the  c o n t e n t s o f Mr.  NCPC C h a i r m a n , Mr.  letter  i s contained  reflects  the  Boyd e x p l a i n e d  i n the  Buchanan and  Smith.  of  Minister  the  commented 1976  letter  A c o p y o f Mr.  NCPC management's  conclusions  to the  Chairman o f  Lowe's M a r c h 29,  to the  and  -  that  report.  Lowe's  report Mr.  that:  T h e r e was o b v i o u s l y some d e l a y i n t h e s t a r t o f c o n s t r u c t i o n as a r e s u l t o f t h e d e c i s i o n t o p r o c e e d by way o f t h e new N o r t h e r n I n l a n d Waters A c t , but i t i s d i f f i c u l t to u n d e r s t a n d why N.C.P.C. was n o t p r e p a r e d f o r these r e q u i r e m e n t s c o n s i d e r i n g the Chairman o f t h e N o r t h e r n Canada Power C o m m i s s i o n was t h e Deputy M i n i s t e r o f t h e D e p a r t m e n t . G o i n g beyond the d i r e c t i n v o l v e m e n t o f the Water Board, i t i s i n t e r e s t i n g t o note t h a t i n Mr. Lowe's l e t t e r t o Mr. S m i t h d a t e d M a r c h 29, 1976, " t h e main r e a s o n f o r t h e i n c r e a s e d c o s t i s t h e d e l a y i n i n i t i a t i o n o f t h e p r o j e c t due to the delay i n issuance of the water l i c e n c e " . However, t h e p r o j e c t e s t i m a t e i n M a r c h 1973, immediately p r i o r t o the i s s u e of the water l i c e n c e was $16,475 m i l l i o n as p e r attached page 8.01 o f t h e N.C.P.C. r e p o r t . Nine months l a t e r - , w h i c h was e i g h t months a f t e r t h e l i c e n c e was i s s u e d and s i x months a f t e r t h e award o f t h e main c o n t r a c t , a new estimate s h o w i n g o n l y $17.8 m i l l i o n was p r e p a r e d . I t i s a l s o of i n t e r e s t to note t h a t the c o n s t r u c t i o n s c h e d u l e e n v i s a g e d a time span of f i f t e e n months f r o m t h e d a t e o f a w a r d i n g t h e main c o n t r a c t (C9-04) t o c o m m i s s i o n i n g o f t h e f i r s t u n i t , where i n f a c t , i t t o o k t w e n t y f o u r months t o c o m p l e t e t h i s work. Surely t h i s d e l a y and t h e a s s o c i a t e d c o s t s c a n n o t be a t t r i b u t e d t o d e l a y i n i s s u i n g t h e w a t e r l i c e n c e . ...  - 121  -  I t i s f a i r t o s a y t h a t N.C.P.C. d i d i n c u r c o s t s on A i s h i h i k as a r e s u l t o f d e l a y s , however, t h e Water B o a r d r e q u i r e m e n t s were not unusual or unwarranted. Mr. Lowe's s t a t e m e n t " t h a t t h e p r o j e c t w o u l d have c o s t $20-24 m i l l i o n i f i t had b e e n a l l o w e d t o p r o c e e d as p l a n n e d by N.C.P.C." i s n o t substantiated. 33  A reply  t o Mr.  Boyd's l e t t e r was  M i n i s t e r , Warren Allmand,  p r o v i d e d by  on September  29,  the  new  1976:  This i s i n r e p l y to your l e t t e r of J u l y 7 t o t h e H o n o u r a b l e J u d d B u c h a n a n and p r e v i o u s l y acknowledged, about the c o s t o v e r r u n s o f the A i s h i h i k P r o j e c t . Y o u r comments were t h o r o u g h , and w i l l be most h e l p f u l t o us i n o u r r e v i e w . I t would appear t h a t no s i n g l e f a c t o r c a n be i d e n t i f i e d as c a u s i n g t h e o v e r r u n s , b u t t h a t i t was a s e r i e s of events. I have n o t r e l e a s e d your r e p o r t t o the N.C.P.C, n o r w i l l I do so w i t h o u t y o u r c o n s e n t . I would s a y , however, t h a t t h e r e d o e s n o t seem t o be any c o m p e l l i n g reason, to•• d i s s e m i n a t e t h i s ; i n f o r m a t i o n any f u r t h e r . 34  I.  The  Dalby  The  Dalby  Minister,  Report  R e p o r t was  written  at the request of  J u d d B u c h a n a n , and was  commissioned  C h a i r m a n o f NCPC, James S m i t h , who of reference.  The  the by  prepared the  main f i n d i n g s o f t h e R e p o r t  the terms  are:  1)  We f o u n d no e v i d e n c e o f g r o s s n e g l i g e n c e , w r o n g d o i n g o r m i s c o n d u c t on t h e p a r t o f NCPC's management.  2)  The f a c t o r s c o n t r i b u t i n g t o t h e h i g h e r than estimated c o s t f o r A i s h i h i k a r e : a) The o r i g i n a l c o s t e s t i m a t e , w h i c h was b a s e d on p r e l i m i n a r y e n g i n e e r i n g , was t o o low.  -  122  -  b)_ D e l a y i n s t a r t i n g c o n s t r u c t i o n due t o the. d e l a y s a s s o c i a t e d w i t h t h e i s s u i n g o f a "water l i c e n c e " . c) An a b n o r m a l r a t e o f i n f l a t i o n . d) A c t u a l i n t e r e s t r a t e s b e i n g h i g h e r than, anticipated — e s t i m a t e b a s e d on 6% i n t e r e s t w h e r e a s a c t u a l i n t e r e s t was .9.5%.  Poor c o n t r a c t o r performance under certain contracts. Deficiencies i n planning, preparation o f t e n d e r documents and c o s t c o n t r o l . More r i g i d e n v i r o n m e n t a l r e q u i r e m e n t s than a n t i c i p a t e d . C o s t o f l a b o u r , due t o p o o r l a b o u r p r o d u c t i v i t y and l a b o u r u n i o n ' s s u c c e s s i n o b t a i n i n g l a r g e wage i n c r e a s e s and i n t r o d u c i n g c o s t l y c h a n g e s t o work r u l e s . The r e - r o u t i n g o f t h e t r a n s m i s s i o n line for e c o l o g i c a l reasons. I n t e r e s t during c o n s t r u c t i o n , which i s i n f l u e n c e d by a l l o f t h e a b o v e , b e i n g much h i g h e r t h a n a n t i c i p a t e d . NCPC management h e l d b a c k on commitments f o r d e t a i l e d e n g i n e e r i n g t o h o l d down c o s t s i n the event t h a t a s u i t a b l e l i c e n c e c o u l d n o t be o b t a i n e d . When t h e p e r m i t was f i n a l l y i s s u e d t h e company was p r o j e c t e d i n t o a v e r y t i g h t scheduling f o r d e t a i l e d engineering, p r e p a r a t i o n of c o n t r a c t s p e c i f i c a t i o n s , awarding c o n t r a c t s and s t a r t i n g c o n s t r u c t i o n . An u n f o r t u n a t e d e c i s i o n w h i c h added s i g n i f i c a n t l y t o the c o s t of the p r o j e c t . 35  It  appears t h a t  implicitly  accept  management and in  the  of  acceptance of  f i n d i n g s of  the  the  of  the this  as  a  no  weight i s given  the  Dalby  argument p r e s e n t e d  Crippen Engineering  issuance  proportion  the  water  overrun.  to  i n the  reports  l i c e n c e caused Finding  "2)b)"  argument, a l t h o u g h  "contributing", rather  Report  i t is  than a c a u s a l  i t s influence.  that  NCPC delays  some indicates cited  factor,  and  Unfortunately,  -  the  Dalby r e p o r t  figure the  123 -  never mentions whether t h e base  t o be u s e d t o c a l c u l a t e  estimate  formulated  i n early  at the s t a r t  of  On t h e b a s i s  of the findings  Minister,  t h e o v e r r u n s h o u l d be 1972 o r t h e e s t i m a t e  construction.  o f the Dalby Report, the  Judd Buchanan, s t a t e d  that  i n t o NCPC's h a n d l i n g o f t h e p r o j e c t  a public  inquiry  w o u l d n o t be  36 necessary,  III.  SUMMARY AND CONCLUSIONS  T h e r e a p p e a r s t o be l i t t l e to  follow  the crash  preparations  doubt t h a t  construction  f o r construction  program, when d e t a i l e d  o f the project  yet  been c o m p l e t e d , added s i g n i f i c a n t l y  the  project.  NCPC's r a t i o n a l e the  f o rcreating  sufficient  NCPC a p p a r e n t l y b e l i e v e d  a high p r o b a b i l i t y that be  obtained  be  built,  and t h a t  diesel  a suitable  the project,  licence  generation.  have  t h e r e was  could not  therefore,  l i c e n c e was n o t o b t a i n e d  that  uncertainty  should  that  e v e n t h o u g h i t had no a l t e r n a t e  case a s u i t a b l e use  to the cost of  e x p e n d i t u r e s on d e t a i l e d p r e p a r a t i o n s  been a v o i d e d .  had n o t  s u c h a s i t u a t i o n was  water l i c e n c i n g process created  that  NCPC's a t t e m p t  might n o t  plans i n except t o  -  124 -  Once t h e d e c i s i o n t o c o n s t r u c t NCPC c o n s i d e r e d construction install  i tnecessary  to avoid  crash having to  and o p e r a t e d i e s e l g e n e r a t o r s d u r i n g t h e  in  meeting t h i s  to  install  cost only prevent  The c r a s h  objective,  p r o g r a m was  unsuccessful  and i t was s t i l l  necessary  and o p e r a t e t h e d i e s e l g e n e r a t o r s , $4 m i l l i o n .  this  The p e r c e i v e d  construction  added s i g n i f i c a n t l y  probability that  which  opportunity  expenditure apparently  adoption of a crash  The  t o adopt a  schedule i n order  w i n t e r o f 1974-5.  itself  t h e p r o j e c t was made,  j u s t i f i e d the  program, which  to the cost  the p r o j e c t  could  of the project. be c o m p l e t e d i n  t w e n t y months a l s o a p p e a r s t o have b e e n r a t h e r since d e t a i l e d design not  It  provided  t o account  of the last  cost  of c o n s t r u c t i o n . 'originally 1972  could  start  was e i t h e r i m p l i c i t l y  a result,  the delays  be i n c l u d e d  overrun are  reports  that  the causes  f i n d i n g s on t h e  estimate prepared before  Instead,  intended'  t h a t have been  f o r , and e x p l a i n  t h e o v e r r u n do n o t p r e m i s e t h e i r  use  of construction.  the cost  because each o f t h e three  were w r i t t e n of  the explanations  f o r the reasons behind  misleading,  small,  and s p e c i f i c a t i o n w r i t i n g had  been completed p r i o r t o t h e s t a r t  would appear t h a t  to  the s t a r t  the f i g u r e prepared of construction or e x p l i c i t l y  i n the issuance  i n the analyses  i n early  used.  o f a water  presented  f o r the  As licence  i n these  reports.  - 125 -  T h i s t y p e o f a n a l y s i s m i g h t be a c c e p t a b l e i f no further delays  c o s t e s t i m a t e s were p r e p a r e d . i n the issuance of the licence  However,  had o c c u r r e d  when NCPC b e g a n c o n s t r u c t i o n o f t h e p r o j e c t , t h a t time  t h e p r o j e c t was e s t i m a t e d t o c o s t  million.  I f t h e water  cost of the project,  licence  then  this  and  a l l subsequent  in  excess  prepared these  $16.75  s h o u l d have been  i n t h e p r e p a r a t i o n o f t h e $16.75 m i l l i o n  the f i n a l  and a t  delays a f f e c t e d the  for  Since  a l l  accounted  estimate,  estimates.  c o s t o f t h e p r o j e c t was  substantially  of a l l of the cost estimates that f o r the project,  were  i t may be c o n c l u d e d  c o s t e s t i m a t e s were n o t a d e q u a t e l y  that  formulated, 37  and  t h a t NCPC s h o u l d be h e l d a c c o u n t a b l e  f o r them.  -  126  -  CHAPTER  SIX  REFERENCES AND  NOTES  1.  A i s h i h i k water  l i c e n c e , L i c e n c e number Y3L5-0001, P a r t  2.  L.  Brandon t o  3.  L.  B r a n d o n t o D.  4.  N o r t h e r n N a t u r a l R e s o u r c e s and E n v i r o n m e n t a l B r a n c h , D e p a r t m e n t o f I n d i a n A f f a i r s and N o r t h e r n D e v e l o p m e n t , "Case Summary, The R a i s i n g o f A i s h i h i k L a k e i n E x c e s s o f W a t e r Use L i c e n c e Y3L5-0001 May-September, 1975", u n d a t e d , p.2.  5.  Ibid.,  6.  D e p a r t m e n t o f t h e E n v i r o n m e n t , F i s h e r i e s and M a r i n e S e r v i c e , Northern Operations Branch, "Presentation to t h e Yukon T e r r i t o r i a l Water B o a r d I n q u i r y i n t o t h e Aishihik Hydroelectric Project", in Aishihik Transcript, 28 A u g u s t 1975, E x h i b i t #7, p.3.  7.  S y n e r g y West L t d . , " A i s h i h i k V i l l a g e Impact i n A i s h i h i k T r a n s c r i p t , E x h i b i t #5, p.15.  8.  Crippen Engineering Ltd., i n "Case Summary", p.15.  9.  Northern Natural "Case Summary",  J . Lowe, 27  July  1973,  Hunt, 2 5 M a r c h 1974,  B.  p.1,2. p.3.  p.10.  t o F.  R e s o u r c e s and p.3.  Mooney, 22 Environment  Analysis", August  1975,  Branch,  10.  I t s h o u l d be n o t e d t h a t a new g e n e r a t i o n f a c i l i t y s u c h as t h e A i s h i h i k was n e e d e d , and t h a t some i n c r e a s e i n power r a t e s w o u l d have been an i n e v i t a b l e i m p a c t o f any new project.  11.  NCPC, R e p o r t on A i s h i h i k , M a r c h 1976. C r i p p e n E n g i n e e r i n g L t d . , " A i s h i h i k Power A n a l y s i s o f C o s t O v e r r u n " , March 1976.  Development,  12.  R. N. D a l b y & A s s o c i a t e s , H y d r o - E l e c t r i c D e v e l o p m e n t , A i s h i h i k Yukon, S t r u t t L a k e NWT., and N o r t h e r n Canada Power C o m m i s s i o n , ( D a l b y R e p o r t ) , A p r i l 1976.  13.  Mr. D a l b y was a t t h e t i m e an e n g i n e e r i n g consultant w i t h e x t e n s i v e u t i l i t y i n d u s t r y e x p e r i e n c e , former s e n i o r v i c e p r e s i d e n t of the Canadian U t i l i t i e s L t d . , and p r e s e n t c h a n c e l l o r o f t h e U n i v e r s i t y o f A l b e r t a .  14.  R. N. D a l b y & A s s o c i a t e s , D a l b y R e p o r t , p.3. I t i s n o t s t a t e d what p r o p o r t i o n o f NCPC's b o r r o w i n g s were made a t what r a t e .  - 127 15.  NCPC, R e p o r t on A i s h i h i k ,  16.  Crippen E n g i n e e r i n g L t d . , "Analysis o f Cost C o n c l u s i o n s , p.2.  17.  NCPC, R e p o r t on A i s h i h i k ,  18.  J . Lowe t o J . S m i t h , C h a i r m a n , i n R e p o r t on A i s h i h i k .  19.  NCPC, R e p o r t on A i s h i h i k ,  20.  Ibid.., S e c t i o n  21.  Ibid.  22.  Crippen E n g i n e e r i n g L t d . , " A n a l y s i s of Cost A p p e n d i x 1.  23.  Ibid.  24.  R. N. D a l b y  25.  C r i p p e n E n g i n e e r i n g L t d . , " A n a l y s i s o f C o s t O v e r r u n " , p.5.  26.  Ibid.  27.  NCPC, R e p o r t on A i s h i h i k , S e c t i o n 4, I n t r o d u c t i o n . D e l a y s i n r e c e i v i n g a l a n d r e s e r v a t i o n a p p e a r t o be i n large part a t t r i b u t a b l e to the o f f i c e o f the C o m m i s s i o n e r o f t h e Yukon, Mr. J . S m i t h . NCPC, R e p o r t on A i s h i h i k , r e f s . 4.02, 4.03, 4.04.  28.  NCPC, R e p o r t on A i s h i h i k ,  29.  C r i p p e n E n g i n e e r i n g L t d . , C o n c l u s i o n s , p.2.  30.  NCPC, R e p o r t on A i s h i h i k ,  31.  J . Lowe t o J . S m i t h ,  32.  J . Smith t o J . Buchanan, M i n i s t e r A f f a i r s , 10 A p r i l 1976.  33.  B. Boyd, C h a i r m a n , Yukon T e r r i t o r y Water B o a r d , t o Hon. J . B u c h a n a n , 7 J u l y 1976.  34.  W. Almand, M i n i s t e r o f I n d i a n and N o r t h e r n A f f a i r s , t o B. Boyd, 2 9 September 197 6.  35.  R. N. D a l b y  7,  p.8-0.  Section  Overrun",  8, p . 2 .  NCPC, 2 9 M a r c h 1976,  Section  4, p . 5 .  p.l.  & Associates,  Overrun",  Dalby R e p o r t , p.15.  Section  Section  9, p . 2 .  9, p . l .  29 M a r c h 1976, i n R e p o r t on A i s h i h i k .  & Associates,  o f I n d i a n and N o r t h e r n  Dalby Report,  p.3,4.  -  128 -  36.  D e p a r t m e n t o f I n d i a n and N o r t h e r n A f f a i r s , "NCPC R e p o r t R e l e a s e d " ( p r e s s r e l e a s e ) , 22 A p r i l 1976.  37.  The c o s t o v e r r u n f o r t h e A i s h i h i k p r o j e c t , t o p l a c e i t i n b r o a d e r c o n t e x t , i s n o t w i t h o u t p r e c e d e n t among p r o j e c t s c o n s t r u c t e d i n t h e n o r t h d u r i n g t h e same time p e r i o d . A t r e n d a p p e a r s t o have d e v e l o p e d i n t h e a c c u r a c y o f q u a n t i t a t i v e e s t i m a t e s p r o v i d e d by p r o j e c t proponents which reduces the a b i l i t y f o r r e s p o n s i b l e a g e n c i e s and t h e p u b l i c i n g e n e r a l t o make i n f o r m e d d e c i s i o n s . R e c a l l t h a t d u r i n g t h e May 1972 h e a r i n g , t h e c o s t e s t i m a t e g i v e n by NCPC was f o r $12 m i l l i o n , and i t was s t a t e d t h a t t h e p r o j e c t w o u l d n o t r e q u i r e an i n c r e a s e i n e l e c t r i c a l r a t e s . As J u s t i c e Berger points out: "In t r y i n g t o p r e d i c t t h e impact o f l a r g e - s c a l e f r o n t i e r p r o j e c t s , we s h o u l d be r e a l i s t i c a b o u t the c o s t e s t i m a t e s t h a t t h e companies p r e s e n t . L a r g e - s c a l e f r o n t i e r p r o j e c t s u s u a l l y c o s t much more t h a n was i n i t i a l l y e s t i m a t e d . We have s e e n t h e e s t i m a t e d c o s t o f t h e James Bay p r o j e c t i n c r e a s e t h r e e - f o l d , f r o m $6 b i l l i o n i n 1971 t o $16 b i l l i o n i n 1976. I n 1970, t h e e s t i m a t e d c o s t o f t h e t r a n s - A l a s k a p i p e l i n e was $900 million; today, with the p r o j e c t near completion, i t i s a p p a r e n t t h a t t h e c o s t w i l l be a p p r o x i m a t e l y $8 b i l l i o n . The A l a s k a P i p e l i n e S e r v i c e Company o r i g i n a l l y advised the State o f Alaska that i t w o u l d r e q u i r e some 6,000 t o 8,000 w o r k e r s t o b u i l d the p i p e l i n e . In f a c t , during both the 1975 and 1976 c o n s t r u c t i o n s e a s o n s , 24,000 w o r k e r s were e m p l o y e d on i t . We have s e e n t h e e s t i m a t e d c o s t o f t h e A r c t i c Gas p r o j e c t r i s e f r o m 5.6 b i l l i o n i n M a r c h 1974 t o a p p r o x i m a t e l y $8 b i l l i o n t o d a y . This estimate i s not, o f c o u r s e , t h e c o s t o f t h e whole p i p e l i n e , but only o f t h e p a r t o f i t t h a t w i l l run through Canada. The F o o t h i l l s p i p e l i n e n o r t h o f 60 h a s u n d e r g o n e a s i m i l a r i n c r e a s e , f r o m an e s t i m a t e d $1.71 b i l l i o n , when i t was f i r s t p r o p o s e d i n 1974, t o o v e r $3 b i l l i o n i n 1977. A r c t i c Gas w i l l be a s k i n g t h e Government o f Canada and t h e Government o f t h e U n i t e d S t a t e s t o g u a r a n t e e repayment o f t h e i r b o r r o w i n g s , f o r c o s t o v e r r u n s , and F o o t h i l l s w i l l seek a s i m i l a r g u a r a n t e e . " ( J u s t i c e T'. R. B e r g e r , R e p o r t o f t h e M a c k e n z i e V a l l e y P i p e l i n e I n q u i r y , 1977, V o l . 1 , p . 8 8 ) .  -  129 -  CHAPTER SEVEN FINAL STUDIES AND THE THIRD HEARING - AUGUST, 1975 I.  INTRODUCTION  The  course of the h i s t o r y of the A i s h i h i k p r o j e c t  two  somewhat s e p a r a t e p a t h s a f t e r t h e w a t e r  granted  to permit construction  involves and  the construction  One p a t h  and c o m m i s s i o n i n g o f t h e p r o j e c t , while the  c o n s i s t s o f t h e p r o c e s s t h a t was u n d e r t a k e n t o  amend t h e w a t e r l i c e n c e . a  l i c e n c e was  i n e a r l y 1973.  how t h e c o s t o v e r r u n s were d e a l t w i t h ,  other  takes  NCPC d i d f i n a l l y  s y s t e m s s t u d y and a d d i t i o n a l i n f o r m a t i o n  provide on t h e  environmental e f f e c t s of changing the c o n d i t i o n s water l i c e n c e . sufficient  The f i n d i n g s o f t h e s e  to receive  a water  over P t t e r F a l l s .  were  l i c e n c e t h a t would  NCPC t o u s e a 12.5 f o o t s t o r a g e releases  studies  of the  permit  r a n g e and r e d u c e d  flow  The l i c e n c e was i s s u e d , b u t  NCPC had n o t y e t t a k e n a d v a n t a g e o f t h e i n c r e a s e d allowable  This place  storage  range.  chapter describes during  the t h i r d  the important hearing,  and t h e s t u d i e s  were u n d e r t a k e n by NCPC's c o n s u l t a n t s request  f o r an amended l i c e n c e .  events that  took that  t o support i t s  II.  130 -  THE THIRD HEARING  The  third  hearing  t o o k p l a c e on A u g u s t  September 17, 1975.  28 and 29, and  Mr. B r a n d o n was no l o n g e r  Chairman  o f t h e Water B o a r d , and was r e p l a c e d by Mr. B. Boyd. Most o f t h e r e s t  o f t h e members o f t h e B o a r d had a l s o  been c h a n g e d s i n c e t h e p r e v i o u s  hearing.  M a j o r b r i e f s were made on b e h a l f organizations and  Procedural  frequently during the hearing,  the  At  and f r u s t r a t i o n  difficulties  occurred  and an a t m o s p h e r e o f a p p e a r t o have c h a r a c t e r i z e d  proceedings.  the outset  Fisheries on  Native  and by r e p r e s e n t a t i v e s o f t h e F i s h e r i e s  Marine S e r v i c e .  confrontation  of l o c a l  of the hearing,  a representative of the  and M a r i n e S e r v i c e o b j e c t e d  to the  proceedings  t h e g r o u n d s t h a t t h e Water B o a r d had n o t p e r m i t t e d  a recent The  r e p o r t compiled  hearing  continued,  by t h e S e r v i c e t o be t a b l e d .  and s i n c e t h e r e p o r t had a l r e a d y  become a v a i l a b l e t o t h e p u b l i c , t h e B o a r d that  i t be t a b l e d .  The r e a s o n  later  agreed  why t h e r e p o r t was n o t i  initially of being The of  accepted  i s that i t s contents  i n accordance with  were n o t a s s u r e d  f e d e r a l government  policy.  D e p a r t m e n t o f t h e E n v i r o n m e n t and t h e D e p a r t m e n t Indian  and N o r t h e r n  at a senior l e v e l  Affairs  had, a p p a r e n t l y ,  that a l l presentations at  agreed  - 131 Water B o a r d h e a r i n g s  c o n s i s t only of the f o l l o w i n g :  1.  The s t u d i e s o r p r e s e n t a t i o n s s h o u l d be s c i e n t i f i c , o b j e c t i v e , f a c t u a l analyses pertinent to the application.  2.  The s t u d i e s o r p r e s e n t a t i o n s s h o u l d be t a b l e d w i t h t h e Water B o a r d p r i o r t o t h e h e a r i n g and p u b l i c l y r e l e a s e d . The a u t h o r o r o t h e r c o n t r i b u t o r s may t h e n r e s p o n d t o q u e s t i o n s , but should not present the study o r o t h e r m a t e r i a l i n t h e form o f a b r i e f at a p u b l i c hearing. Comments made must be c o n s i s t e n t w i t h f e d e r a l government p o l i c y and t h e p e r s o n a l o p i n i o n s of t h e a u t h o r o r o t h e r c o n t r i b u t o r s h o u l d be a v o i d e d . 2  Mr.  Boyd e x p l a i n e d  that:  We have r e p e a t e d l y r e q u e s t e d a s s u r a n c e t h a t t h i s document r e p r e s e n t s t h e p o s i t i o n of the Department o f t h e Environment as opposed to the p e r s o n a l views o f t h e authors, but s u c h a s s u r a n c e h a s n o t been f o r t h c o m i n g . 3  It  i s surprising  that a policy  agreement o f t h i s  w o u l d have been made and t h a t i t w o u l d have been by  t h e Board,  nature accepted  s i n c e by r e f u s i n g t o h e a r a r e p r e s e n t a t i o n  t h e B o a r d ' s d e c i s i o n c o u l d be a p p e a l e d  u n d e r s e c t i o n 21  of  willing  t h e N.I.W.A.  with  this  policy  Mr. Boyd's a p p a r e n t l y  agreement c o n t r a s t s w i t h  s t r o n g and immediate r e f u s a l  t o accept  The  to the f i r s t  Mr. B r a n d o n ' s  any o f t h e g u i d e l i n e s  t h e A s s i s t a n t Deputy M i n i s t e r a t t e m p t e d Water B o a r d p r i o r  compliance  t o p l a c e on t h e  hearing.  F i s h e r i e s S e r v i c e r e p o r t t h a t was t a b l e d a t t h e  h e a r i n g was v e r y  critical  of the q u a l i t y  of information  -  132  contained  i n the Pearse  May,  and  1975  Bowden "Compendium R e p o r t "  the Crippen E n g i n e e r i n g / P e a r s e  r e p o r t o f J u n e , 1975,  w h i c h were p r e s e n t e d  B o a r d by NCPC t o s u p p o r t licence. Service  -  i t s application  In the o p i n i o n o f the  authors  liberties  i n the  interpretation  Bowden  to the  f o r an of the  r e p o r t , NCPC's c o n s u l t a n t s t o o k  of  Water  amended Fisheries  "considerable  of c e r t a i n  biological  4  and  engineering data".  c o n s u l t a n t s on  the v a l u e of the  degree of s i l t a t i o n the  fish  was  questioned  The  main r e a s o n  Information  caused  p o p u l a t i o n s , and  by  fishery,  flooding  the n a t u r e  NCPC's  i t s use,  and  the  i t s effect  of the  lake  on  itself,  i n the F i s h e r i e s r e p o r t . behind  the c r i t i c i s m s  involves the view expressed economic  p r o v i d e d by  justification  offered  i n the r e p o r t  by NCPC t h a t t h e r e was  f o r the environmental  no  safeguards  5 recommended by one  the F i s h e r i e s  of the authors  Service.  Mr.  W.  J . Schouwenburg,  of the r e p o r t , s t a t e d t h a t :  ... i t i s c l e a r f r o m t h e c o n s u l t a n t ' s r e p o r t s p r e p a r e d on b e h a l f o f NCPC t h a t NCPC i s u n w i l l i n g to provide s u f f i c i e n t flow r e l e a s e s from A i s h i h i k Lake t o m a i n t a i n f i s h p r o d u c t i o n and i s u n w i l l i n g t o expend r e s o u r c e s t o m a i n t a i n t h e e n v i r o n m e n t a l and a e s t h e t i c q u a l i t i e s of A i s h i h i k Lake. 6  L o c a l N a t i v e o r g a n i z a t i o n s came w e l l - p r e p a r e d hearing.  A detailed  b r i e f was  A i s h i h i k Band, s p o n s o r e d  by  submitted  by  t h e Yukon N a t i v e  to  the  the Champagne/  Brotherhood  and  133 -  t h e C o u n c i l f o r Yukon I n d i a n s .  The c o n s u l t i n g f i r m  S y n e r g y West o f C a l g a r y was c o m m i s s i o n e d impact Mr.  an  a n a l y s i s o f t h e p r o j e c t on A i s h i h i k V i l l a g e , and  Lueck, a Whitehorse  role  t o conduct  i n the hearing,  lawyer  who p l a y e d  a l s o attended  a very  to represent  active Native  interests.  III.  INFORMATION PROVIDED FOR THE HEARING  A.  The S y s t e m s  The  first  Study  systems study,  i n November, 1974.  termed  "Phase I " , was  The s t u d y was b a s e d on a  computer p r o g r a m and was n o t , a p p a r e n t l y ,  completed  simple  c o n s i d e r e d by 7  the Board  t o be s u f f i c i e n t l y  comprehensive.  s t u d y was t h e r e f o r e u n d e r t a k e n , May, 1975.  This study  for a larger  storage  w h i c h was g r a n t e d  both  r a n g e and r e d u c e d  by t h e Water B o a r d  in  Crippen  NCPC's  request  flow r e l e a s e s ,  f o l l o w i n g the August  Engineering  conducted  studies.  In o r d e r and  and i t was c o m p l e t e d i n  was u s e d t o j u s t i f y  September 1975 h e a r i n g s .  The "Phase  t o overview  general  methods,  a p p r o a c h a d o p t e d by C r i p p e n  undertaking  Acres  the procedures,  t h e systems study,  that Acres  Engineering  t h e Water B o a r d  C o n s u l t i n g S e r v i c e s o f Vancouver.  intended  criteria  The Water  hired Board  w o u l d be a b l e t o c o n f i r m t h e  acceptability  o f t h e e c o n o m i c e v a l u a t i o n s made by t h e  systems study  o f changes i n t h e water  Q  licence.  -  134  The  Water Board's c o n s u l t a n t  the  m e t h o d o l o g y and  In  a report  prepared  Acres stated  was  conclusions  i n agreement of  the  with  systems  f o r the Water Board  study.  i n August,  1975,  that:  H a v i n g e x a m i n e d t h e m e t h o d o l o g y and b a s i c c r i t e r i a a d o p t e d by NCPC's c o n s u l t a n t , we believe that t h e i r analysis provides a r e a l i s t i c assessment of the v a l u e of the A i s h i h i k water. 9  1.  Evaluation  of  Benefits  The  method u s e d t o e v a l u a t e  to increase  the  Otter  i s described  Falls  storage  the  benefits of  r a n g e and as  the  reduce the  proposal  flows  over  follows:  ,.. power b e n e f i t s were e v a l u a t e d on t h e b a s i s of present worth d o l l a r savings a t t a i n a b l e through deferment i n terms of complete years of the next r e q u i r e d hydroe l e c t r i c development, or stage t h e r e o f , r e s u l t i n g f r o m i n c r e a s e d s t o r a g e on A i s h i h i k Lake and r e d u c e d f l o w s o v e r O t t e r F a l l s and t h r o u g h t h e r i v e r r e a c h u p s t r e a m o f Canyon Lake. 10 Evaluation  of  the  restrictions  on  b a s e d on  cost  of and  the  the  to  the  power s y s t e m due  Aishihik plant operation  resulting  f u t u r e hydro p l a n t s ,  from e a r l i e r  labelled  i n the  to  were  therefore  commencement study p l a n t s  "X"  "Z".  A c o s t w o u l d be new  losses  hydro p l a n t s  exceeds the  i n c u r r e d by t o the  rate of  an  earlier  degree that  inflation  the  over the  construction rate of period  of  of  interest analysis.  The  135 -  Phase I I study mentioned  that:  The e v a l u a t i o n was c o n d u c t e d on t h e b a s i s o f ... assumed c a p i t a l and o p e r a t i n g c o s t s ; and i n t e r e s t , d i s c o u n t , and i n f l a t i o n r a t e s . . . The s e l e c t i o n o f t h e s e f a c t o r s was p a r t i c u l a r l y d i f f i c u l t a t a t i m e when t h e i n f l a t i o n r a t e i s o f t h e same o r d e r a s t h e i n t e r e s t r a t e and both are changing r a p i d l y . I t might appear that a c a p i t a l expenditure delayed a year c o u l d r e s u l t i n no s a v i n g , s i n c e t h e y e a r ' s c a r r y i n g c h a r g e s c o u l d be e q u a l l e d by t h e i n c r e a s e i n c o s t due t o a y e a r ' s i n f l a t i o n . O v e r any s u b s t a n t i a l p e r i o d o f t i m e , t h i s c a n n o t be t h e c a s e , s i n c e t h e i n t e r e s t r a t e w i l l adjust to provide a r e t u r n over i n f l a t i o n , and t h e e a r l i e r r e q u i r e m e n t of additional generating capacity w i l l incur s u b s t a n t i a l s y s t e m c o s t s w h i c h must be r e f l e c t e d i n t h e rates f o r e l e c t r i c i t y . 11  U s i n g an assumed m a g n i t u d e o f d i f f e r e n c e between t h e r a t e o f i n t e r e s t and t h e r a t e o f i n f l a t i o n sixteen-year that  study p e r i o d ,  F a l l s would s e r v e  new g e n e r a t i n g  2. A  t h e systems study  i n c r e a s i n g the storage  over Otter  plants,  over the determined  r a n g e and r e d u c i n g to defer  flows  t h e need t o i n s t a l l  thus r e s u l t i n g i n c a p i t a l  savings.  Assumptions l a r g e number o f a s s u m p t i o n s h a d t o be made t o c a r r y  out  t h e Phase I I s t u d y . The  Some o f t h e s e  include:  f o l l o w i n g r a t e s w o u l d be m a i n t a i n e d  sixteen-year General  period  Interest  Inflation  Rate  Hydro F i x e d Charges Discount  of analysis:  Inflation  Hydro C a p i t a l  over the  5%  p e r annum  6%  9%  and O p e r a t i n g  Rate  11%  9% p e r  annum  12  - 136 The  -  study d i d not e x p l a i n why  r a t e s were s e l e c t e d .  these p a r t i c u l a r  I t a l s o d i d not p r o v i d e  an  e v a l u a t i o n using d i f f e r e n t s e t s of i n t e r e s t and i n f l a t i o n rates.  A small change i n these  assumed r a t e s of i n t e r e s t and  i n f l a t i o n would  have a s i g n i f i c a n t e f f e c t on the economic made by the  systems study of c a p i t a l  evaluations  savings  r e s u l t i n g from p l a n t postponements.  The  study assumed t h a t NCPC would be  in bringing plants  "X"  required, that plant Five Fingers  and  "X"  successful  "Z" on l i n e j u s t when  would be  l o c a t e d at  Rapids on the Yukon R i v e r , and  plant  "Z" would be l o c a t e d at the Upper Canyon s i t e the Frances R i v e r , and  on  t h a t they would c o s t $138.5 13  m i l l i o n and  $159.5 m i l l i o n r e s p e c t i v e l y . "(19.75. $)_  change i n any  one  A  of these assumptions would a l s o  have a s i g n i f i c a n t e f f e c t on the outcome of  the  analysis. I t was  assumed t h a t the system demands would grow  c o n t i n u a l l y at a more or -less uniform r a t e , and the most important use be to help  of the storage  range would  "smooth out" otherwise abrupt changes  i n the system's generating  capability resulting  from the commissioning of each new  that  plant.  The  v a l u e o f the  derived  137  storage  from i t s a b i l i t y  r a t e s o f l o a d growth w i t h a d d i t i o n s t o the Phase.II  -  r a n g e was  therefore  largely  to help c o o r d i n a t e the the  generation  "abrupt"  system.  "uniform"  incremental  As  e x p l a i n e d i n the  study:  ... t h e most i m p o r t a n t u s e o f s u c h r e s e r v e s p a r t i c u l a r l y i n a system w i t h a growing l o a d demand - may be t h a t o f s t o r i n g e n e r g y w h i l e e x c e s s g e n e r a t i n g c a p a c i t y i s a v a i l a b l e and d r a w i n g upon i t l a t e r t o p o s t p o n e e x p e n d i t u r e s on t h e n e x t h y d r o p l a n t . The l o a d demand t e n d s t o grow c o n t i n u a l l y a t a more o r l e s s u n i f o r m rate; whereas the c a p a c i t y o f the g e n e r a t i n g system t o supply the l o a d i s i n c r e a s e d i n a b r u p t s t e p s as new p l a n t s a r e a d d e d . 14 (emphasis added)  The of  study  does not  s e v e r a l new  a  single  storage  l a r g e mine w o u l d have on  range of A i s h i h i k system.  "a m a j o r i n d u s t r i a l  significantly  the  development  mines w i t h i n a s h o r t p e r i o d o f time,  a d d i t i o n s to the that  i n d i c a t e what e f f e c t  change t h e  i n being The  the  value of  able to  study  or  the  postpone  d o e s , however, m e n t i o n  or m i n e r a l  p r o c e s s i n g l o a d would  p i c t u r e on  the  small  Whitehorse  15 system".  3.  Study  Findings  The  Phase I I study  concluded  b e n e f i t s would r e s u l t and  reducing  the  flows  that significant  from i n c r e a s i n g the over  Otter  Falls.  economic  storage  range  -  138  -  The l o s s e s due- t o s t o r a g e r e s t r i c t i o n s are. f u l l y as g r e a t as i n d i c a t e d i n t h e Phase. I s t u d y and i n a p p r o x i m a t e f i g u r e s a r e as b e l o w : S t o r a g e Range  6 ft •< $14,5  System L o s s Total  Loss;  $25  10. f t 12,5 f t 17 .,5 f t >~ < « =>• million $5 m i l l i o n $5,5 m i l l i o n  million  i n the  16-year study  period.  T h i s t o t a l l o s s i s t h e r e s u l t o f an average, e a r l i e r r e q u i r e m e n t f o r P l a n t 'X' by 3 1/2 y e a r s and P l a n t 'Z' by 1 1/2 years... The. power l o s s e s due t o i n c r e a s e d r e q u i r e d minimum f l o w s o v e r O t t e r F a l l s a r e a p p r o x i m a t e l y as b e l o w ; Minimum Summer F l o w -. _ ' .. „ ,, 100 n  Over O t t e r  n  It  i s not  to these 4. On  60.0  c f s-m  $3 m i l l i o n  Loss;  $6,5  million  m e n t i o n e d how  cfs-m  i n the  $3,5  million  16_^year s t u d y  much: a c c u r a c y c o u l d  be  period."*"^  attached  findings.  Presentation the. b a s i s  of  of the  Study  Findings  f i n d i n g s o f the. P h a s e I I s t u d y , NCPC's  R e g i o n a l Manager s t a t e d  during  the  third  hearing  .,. a d d i t i o n a l r e v e n u e , w i t h a p r e s e n t o f a b o u t 28 m i l l i o n d o l l a r s w o u l d have o b t a i n e d f r o m i n d i v i d u a l and c o r p o r a t e c o n s u m e r s o v e r t h e n e x t s i x t e e n yearsa d d i t i o n a l c o s t s would c o n t i n u e beyond t i m e as l o n g as t h e w a t e r r e s t r i c t i o n s made. 17 A n o t h e r NCPC o f f i c i a l present  c  1000  Falls  System Loss Total  -innn  c  cfs^m  stated during  licence restrictions  power p r o d u c e d  from the  the  that:  worth, to be Yukon and that are  hearing  that  i n e f f e c t doubled the  project:  H e r e a r e t h e s o b e r i n g f a c t s . The b u s b a r c o s t at A i s h i h i k p l a n t w i l l , w i t h the e x i s t i n g l i c e n c e , be a b o u t 6 c e n t s p e r k i l o w a t t h o u r . The b u s b a r c o s t o f A i s h i h i k p l a n t w i t h t h e amended l i c e n c e as o u t l i n e d i n o u r a p p l i c a t i o n w i l l be a b o u t 3 c e n t s p e r k i l o w a t t h o u r . 18  the  cost  of  - 139 -  D e s p i t e t h e l a r g e number o f d i f f i c u l t  assumptions  p r e d i c t i o n s made i n t h e s y s t e m s s t u d y , NCPC appear  and  officials  t o have p r e s e n t e d t h e f i n d i n g s o f t h e s t u d y i n  a manner t h a t p u r p o r t e d a g r e a t d e a l o f a c c u r a c y .  B.  Assessment o f E n v i r o n m e n t a l  Costs  I n May 1975, P e a r s e Bowden c o m p l e t e d Implications  of Aishihik  "Environmental  R i v e r Power D e v e l o p m e n t , A  19 Compendium R e p o r t " . included costs and  a quantified  The f i n d i n g s o f t h i s assessment  t h a t would r e s u l t  decreased  providing so t h a t  this  report  of the environmental  f r o m an i n c r e a s e d s t o r a g e  flows over O t t e r F a l l s . assessment  range  The p u r p o s e o f  of environmental  c o s t s was  t h e y c o u l d be "compared w i t h t h e v a l u e o f power  production  i n d e t e r m i n i n g t h e optimum u s e o f A i s h i h i k  20 water". As t h e r e p o r t e x p l a i n e d : I t i s r a t i o n a l t o c o n t i n u e use o f the A i s h i h i k system and i n c r e a s e t h e d i v e r s i o n o f water f o r power p r o d u c t i o n o n l y i f t h e v a l u e o f t h e energy o b t a i n e d from d o i n g so i s i n e x c e s s of the costs o f obtaining i t . An a n a l y s i s o f how e n v i r o n m e n t a l c o s t s i n c r e a s e a s t h e d e g r e e t o w h i c h t h e s y s t e m i s u s e d f o r power g e n e r a t i o n i n c r e a s e s has been u n d e r t a k e n , t o a s s i s t i n d e c i d i n g on t h e optimum u s e o f A i s h i h i k w a t e r . 21  I t was i n t e n d e d , t h e n , t h a t and  the a n a l y s i s would  evaluate a l l o f the important  the implemention  o f the proposed  identify  costs involved water  licence.  with  -  The  140  -  r e s u l t s o f P e a r s e Bowden's a s s e s s m e n t s o f  c o s t s were compared w i t h t h e study  i n another r e p o r t ,  Environmental Studies  jointly  Crippen  Engineering.  The  benefits  t h a t would accrue  as  determined  the by  various  instance,  Phase I I s t u d y t h a t  a 17.5  result  million  the  i n about  total  from the  Phase I I s t u d y ,  For  $25  II  quantified cost  foot  and  Licence  a u t h o r e d by  environmental costs  P e a r s e Bowden.  Phase  Recommended Water  and  from the  the  "Review o f Power S y s t e m  and  A p p l i c a t i o n " , w h i c h was  r e s u l t s of  environmental  P e a r s e Bowden  licence application, far  exceeded  t h a t were c a l c u l a t e d i t was storage  f o u n d by  the  range would  i n power b e n e f i t s ,  t h a t would r e s u l t  whereas  from  using  22 this  storage  quantified of  The  cost  consisted  c l e a r i n g the  Village, of  r a n g e w o u l d be  f i s h e r y and report  wildlife  d i d recognize  storage  arbitrarily  range. doubled.  the  report  the  f o r the and  the  total cost  Aishihik value  losses. that costs  Estimated This  explains:  This  assessment of  facilities,  some a l l o w a n c e had associated costs  were  a p p r o a c h was  more t h a n a d e q u a t e l y a c c o u n t As  an  $531,000.  repair costs  protection  made f o r n o n - q u a n t i f i e d the  of  lakeshore,  erosion  only  with  to  be  increasing  therefore considered  for non-quantified  to  costs.  -  141  -  S i n c e t h e m a i n component o f t h e e s t i m a t e d storage costs i s f o r erosion preventive work and p r o t e c t i o n o f A i s h i h i k V i l l a g e , w h i c h c a n be e s t i m a t e d r e a s o n a b l y a c c u r a t e l y , the e f f e c t of doubling a l l costs i n t h i s manner i s r e a l l y t o expand t h e c o s t s e s t i m a t e d f o r f i s h e r i e s and w i l d l i f e by a f a c t o r o f a b o u t 12. 23 I t was  a l s o s t a t e d i n the  quantified  "Compendium R e p o r t " t h a t  a e s t h e t i c e f f e c t s were n o t  of  non-  importance:  ... w h i l e t h e e s t i m a t e s do n o t i n c l u d e n o n - q u a n t i f i e d a e s t h e t i c impacts, i t i s not b e l i e v e d t h a t t h e s e w o u l d add s i g n i f i c a n t l y to the values estimated. 24  NCPC's c o n s u l t a n t s the be  determined that  Yukon T e r r i t o r y relatively  L a k e was  The  indifferent  r a i s e d above t h e  as  appears only  c o u l d be  example, t h e  readily total  was  c a l c u l a t e d on  and  was  of  aesthetic point of  historic  high  level.  t o have r e c o g n i z e d  by  NCPC's  those  values  q u a n t i f i e d i n economic terms.  value  view,  to whether or not A i s h i h i k  e v a l u a t i o n of environmental c o s t s provided  consultants that  w o u l d , f r o m an  the p o p u l a t i o n  o f t h e b e a v e r and  muskrat  the b a s i s o f economic r e t u r n s  For populations  for  trapping,  25 determined  subsistence  t o be  f i s h e r y was  $1,000.  The  value  c a l c u l a t e d i n the  of  the  f o l l o w i n g manner:  In terms o f the f i s h f e d t o dogs, approximately f i v e thousand pounds, r e p l a c e m e n t dog f o o d c o u l d e a s i l y be d e l i v e r e d t o t h e v i l l a g e f o r 25c p e r pound. The v a l u e o f t h e f i s h u s e d as dog f o o d w o u l d t h u s be $1,250. To r e p l a c e t h e f i s h t a k e n f o r human c o n s u m p t i o n w o u l d p r o b a b l y c o s t more i n t h e o r d e r o f $1.00 p e r pound, i n d i c a t i n g a t o t a l v a l u e o f $1,500.  -  142  -  The t o t a l a n n u a l v a l u e o f t h e s u b s i s t e n c e f i s h e r y i n terms o f i t s r e p l a c e m e n t c o s t , i s thus about $ 2 , 7 5 0 . With a d i s c o u n t rate o f nine per cent the present c a p i t a l i z e d value over the 16 year period i s $ 2 3 , 0 0 0 . 26 The  report  a l s o mentions  that:  I t i s r e c o g n i z e d t h a t t h e r i g h t t o f i s h has i n i t s e l f a value t o the Indian people which transcends t h e replacement c o s t o f the a c t u a l f i s h e x t r a c t e d o v e r any p e r i o d o f time. 27 T h i s a d d i t i o n a l v a l u e was g i v e n no f u r t h e r however.  Thus, f o r t h e purpose  use o f w a t e r ,  o f d e t e r m i n i n g t h e optimum  the value of theA i s h i h i k  t o t h e I n d i a n p e o p l e was c a l c u l a t e d of replacement  It  consideration,  system  i n terms  fishery  of the cost  foodstuffs.  i sinteresting  t o note that, while the r e p o r t  by P e a r s e Bowden d e t e r m i n e d  that  the t o t a l  t h e f i s h e r y w o u l d have a v a l u e o f  $40,000  prepared  losses to i fa  17.5  foot  28  s t o r a g e r a n g e was u s e d , spent  i n the order o f  the Fisheries  $250,000  and Marine  Service  to assess the f i s h e r i e s 29  implications  It was  i s also  arising  from t h e p r o j e c t .  interesting  t o note t h a t  made b y an NCPC o f f i c i a l  i n response produced  the following  statement  during the third hearing,  t o a q u e s t i o n c o n c e r n i n g t h e c o s t o f power  from t h e p r o j e c t :  ... t o g i v e i n that the and a l l t h e f o r damages  143  -  a p r e c i s e answer i s n o t p o s s i b l e p r o j e c t i s not y e t completed e n v i r o n m e n t a l c o s t s and claims have n o t y e t been f i n a l i z e d . 30  T h e r e a p p e a r s t o be  some i n c o n s i s t e n c y  t h a t NCPC o f f i c i a l s  felt  determine the costs  and  a report  c o s t o f the  claims  w h i l e at the  storage  e v e n more s t r i k i n g substantially  The  cost  historic the  historic  project.  had  Brotherhood t o the  had  filed  had  received, completed  only  the  is  project,  several  level  to these  million  substantial  been exceeded  period. the  for  i n order  b e e n any  Yet, at  the  2.5  by total  feet  i n P e a r s e Bowden's  $316,000.  significantly  a claim  Aishihik Village  of  determined  only  June 16,  been  that  some j u s t i f i c a t i o n  could  On  not  construction  was  fact  order  had  high  high  NCPC o f f i c i a l s  the  yet  "environmental  inconsistency  cost of  for maintaining  t h a t damage c l a i m s of  the  i n the  "Compendium R e p o r t " , t o be  The  This  final  even though t h e r e  quantified  not  fact  yet  quantified costs  range.  change t h e  feet during  above t h e  total  i n view of  c o s t s w o u l d have t o be  1.5  not  p r o j e c t because  f o r damages" had  which provided  flooding.  they could  same t i m e NCPC's c o n s u l t a n t s  i n c r e a s i n g the  dollars,  that  between t h e  1976,  the  for anticipating  affect Yukon  the  cost  Native  f o r $4,850,000 f o r damage done  r e s u l t i n g from the  maintenance  -  144  o f w a t e r l e v e l s above t h e  natural  l e v e l s and  the  illegal  The  Pearse  31 increases  during  Bowden r e p o r t and  the  d i d not  quantified costs  Village  only  certain  remedial  IV.  construction deal  type of  question,  r e s u l t i n g f r o m damages t o A i s h i h i k  i n terms of the  cost  of  undertaking  measures.  r e s u l t s of the  studies  were f o u n d a d e q u a t e by i s s u i n g an that  increased  storage  the Water Board  the  benefits r a n g e and  would g r e a t l y exceed the be  c a u s e d by  If  any  of  these  use  of  these  degree of  studies  reduced  an  flows over Otter  environmental costs  that  i n the  s t u d i e s , t h e n NCPC c l e a r l y  should  be  making  Close  to  $25  12.5  foot  can  storage  range.  w o u l d have been g a i n e d ,  1975.  Falls  would  placed  i f the  NCPC has  authorization, despite economic  These  purpose  changes.  u s e d a f t e r NCPC r e c e i v e d of  f o r the  consultants  t h a t would r e s u l t from  reliability  these s t u d i e s ,  fall  licence.  NCPC's  be  the  (.1975 $)  u n d e r t a k e n by  amended w a t e r  indicated  of  with t h i s  SUMMARY  The  of  period.  sacrifice.  12.5  according  foot  not  yet  range  so  in  a  findings was  the  taken advantage of  what a p p e a r s t o be  million  to the  storage  a l i c e n c e t o do  findings  this  considerable  - 145 The  r e a s o n why NCPC h a s n o t made u s e o f t h e 12.5 f o o t  s t o r a g e r a n g e a p p e a r s t o be b e c a u s e what t h e r e a c t i o n might be.  is  of the Native Indian  I t would  c o u r s e h a s been  be i n t e r e s t i n g  chosen  freely  responding to i n s t r u c t i o n s  Indian A f f a i r s  o f a concern  and N o r t h e r n  about  organizations  t o know w h e t h e r  by NCPC o r w h e t h e r  NCPC  from t h e M i n i s t e r o f Development.  this  -  146  -  CHAPTER SEVEN REFERENCES AND  NOTES  1.  W.J. Shouwenburg, F i s h e r i e s and M a r i n e S e r v i c e , Northern Operations Branch, A i s h i h i k T r a n s c r i p t , 28 A u g u s t , 1975, p. 11.  2.  B. Boyd, C h a i r m a n , Yukon T e r r i t o r y W a t e r B o a r d , Aishihik T r a n s c r i p t , 28 A u g u s t , 1975, p. 74. A l t h o u g h Mr. Boyd u n d e r s t o o d t h a t t h e D e p a r t m e n t o f t h e E n v i r o n m e n t and t h e D e p a r t m e n t o f I n d i a n and N o r t h e r n A f f a i r s had e n t e r e d i n t o an a g r e e m e n t , t h e r e i s no r e c o r d t h a t s u c h an agreement was f o r m a l l y made.  3.  I b i d . , p.  4.  D e p a r t m e n t o f t h e E n v i r o n m e n t , F i s h e r i e s and M a r i n e S e r v i c e , Northern Operations Branch, "Presentation t o t h e Yukon T e r r i t o r i a l Water B o a r d I n q u i r y i n t o the A i s h i h i k H y d r o e l e c t r i c P r o j e c t " , i n A i s h i h i k T r a n s c r i p t , 28 A u g u s t , 1975, E x h i b i t #7, p. 2.  5.  Ibid.  6.  I b i d . , , p.  7.  C r i p p e n E n g i n e e r i n g L t d . , " A i s h i h i k R i v e r Power Development, A i s h i h i k - W h i t e h o r s e System Study Phase I I R e p o r t , 2 May, 1975, p. 1-1.  8.  A c r e s C o n s u l t i n g S e r v i c e s L t d . , "Review o f S u b m i s s i o n M a t e r i a l P e r t a i n i n g to the A i s h i h i k H y d r o - E l e c t r i c P r o j e c t NCPC A p p l i c a t i o n F o r Amendment o f Water Use L i c e n c e " , A u g u s t , 1975, p. 1.  9.  I b i d . , p.  7.  10.  I b i d . , p.  4.  11.  Crippen Engineering Ltd.,  12.  I b i d . , Appendix  I I , p. v i .  13.  I b i d . , Appendix  I I , p.  14.  I b i d . , A p p e n d i x I I I , p. i i . The a s s u m p t i o n o f u n i f o r m l o a d g r o w t h r a t e s seems i n c o s i s t e n t w i t h t h e f o l l o w i n g a s s e s s m e n t made by t h e NCPC|;s G e n e r a l Manager o f t h e e x p e c t e d l o a d g r o w t h i n t h e W h i t e h o r s e s y s t e m made d u r i n g t h e May 1972 hearing:  75.  19.  "Phase I I R e p o r t " , p.  4-1.  v.  - 147  -  " I w o u l d l i k e t o p o i n t o u t two f a c t o r s w h i c h underline the complexity of load f o r e c a s t i n g f o r the Whitehorse system. These a r e : a. The m i n e r a l o r i e n t e d n a t u r e o f t h e economy w i t h i t s i n h e r e n t d e p e n d e n c e on w o r l d m i n e r a l pricing. M o r e o v e r , d i r e c t and i n d i r e c t c o n s u m p t i o n by t h e mine c o n n e c t e d t o t h e s y s t e m c o n s t i t u t e s r o u g h l y 70% o f t h e t o t a l energy g e n e r a t i o n from t h i s system. b. The r e l a t i v e l y s m a l l s i z e o f t h e s y s t e m as w e l l as i t s i s o l a t i o n f r o m any o t h e r s y s t e m means t h a t new l o a d s and l a r g e i n c r e m e n t a l b l o c k s has a h i g h p e r c e n t a g e e f f e c t on l o a d growth" J o h n Lowe, G e n e r a l Manager, NCPC, A i s h i h i k H e a r i n g T r a n s c r i p t , 24 May, 1972. Ltd.,  General  15.  Crippen Engineering II, p . i .  "Phase I I R e p o r t " ,  Appendix  16.  Ibid.,  17.  F. Mooney, R e g i o n a l Manager, NCPC, A i s h i h i k T r a n s c r i p t , 28 A u g u s t , 1975, p.3.  18.  D. S t e e n , p.88.  19.  P e a r s e Bowden E c o n o m i c C o n s u l t a n t s , "Environmental I m p l i c a t i o n s o f A i s h i h i k Power D e v e l o p m e n t , A Compendium R e p o r t " , May, 197 5.  20.  C r i p p e n E n g i n e e r i n g L t d . , and P e a r s e Bowden E c o n o m i c C o n s u l t a n t s , " A i s h i h i k Power D e v e l o p m e n t , Review o f Power S y s t e m and E n v i r o n m e n t a l S t u d i e s and Recommended W a t e r L i c e n c e A p p l i c a t i o n " , J u n e , 1975, p . 2 - 1 .  21.  P e a r s e Bowden E c o n o m i c C o n s u l t a n t s , May, 1975, p.57.  22.  Ibid.,  23.  C r i p p e n E n g i n e e r i n g L t d . , and P e a r s e Bowden E c o n o m i c C o n s u l t a n t s , "Review o f Power S y s t e m " , p.3-6.  24.  P e a r s e Bowden E c o n o m i c May, 1975, p.44-45.  p.5-1.  Planning  D e p a r t m e n t , NCPC, A i s h i h i k T r a n s c r i p t ,  "Compendium  Report",  p.58.  C o n s u l t a n t s , "Compendium  Report",  -  148  -  25.  Ibid.,  p.43.  26.  Ibid.,  p.42.  27.  Ibid.  28.  Ibid.  29.  W. F. S i n c l a i r , F i s h e r i e s and M a r i n e S e r v i c e , "Presentation t o t h e Yukon T e r r i t o r i a l Water B o a r d " , i n A i s h i h i k T r a n s c r i p t , 28 A u g u s t , 1975, E x h i b i t #7, p.4.  30.  D. S t e e n , A i s h i h i k T r a n s c r i p t ,  28  August,  1975,  p.88.  A n o t h e r NCPC o f f i c i a l , Mr. W a t k i s s , a l s o m e n t i o n e d during the hearing that the cost of the p r o j e c t could n o t be d e t e r m i n e d a t t h a t t i m e b e c a u s e damage c l a i m s had n o t y e t . b e e n r e c e i v e d : "The c o s t o f t h e p r o j e c t c a n n o t be f i n a l l y d e t e r m i n e d u n t i l we know what we a r e g o i n g t o do on t h e p r o j e c t . We've r e c e i v e d no c l a i m s from t h e Indians y e t d e s p i t e seven months o f w a i t i n g . There a r e suggestions that c l a i m s a r e g o i n g t o be v e r y g r e a t . " A i s h i h i k T r a n s c r i p t , p.85. 31.  I n t e r v i e w , D a v i d J o e , Yukon N a t i v e A u g u s t , 197 8.  Brotherhood,  -  149 -  PART THREE CHAPTER EIGHT CONCLUSIONS I. It  AND  RECOMMENDATIONS  INTRODUCTION i s evident  during  that  a number o f p r o b l e m s were e n c o u n t e r e d  the course o f the h i s t o r y of the A i s h i h i k  T h e s e p r o b l e m s may be b r o a d l y were e x p e r i e n c e d d u r i n g that  affected  This  chapter w i l l  the of  that  be p r o v i d e d  II.  recommendations w i l l  contributed  and t h o s e  t o the development  More s p e c i f i c  occurred. be  that  p r o c e s s and i d e n t i f y  p r o c e s s and t h e  explanations  f o r why t h e p r o b l e m s t h a t  outcome o f t h e p r o j e c t  those  outcome.  problems c o n c e r n i n g both the d e c i s i o n  also  into  process,  review the d e c i s i o n  outcome o f t h e p r o j e c t .  of  the decision  the project's  major f a c t o r s  categorized  project.  Finally,  will  affected the a brief set  given.  REVIEW OF THE DECISION PROCESS  A number o f e v e n t s t o o k p l a c e  during  t h e p l a n n i n g and  development o f t h e A i s h i h i k p r o j e c t which process d i d not proceed  indicate  the  decision  and  i n a manner t h a t was s a t i s f a c t o r y t o a l l p a r t i c i p a n t s .  Following  NCPC's f i r s t  on  31, 1971, i t was i n f o r m e d by s e n i o r  August  application  smoothly,  that  f o r a water  efficiently,  licence DIAND  officials  that  150 -  an e n t i r e l y  new p r o c e d u r e w o u l d be u s e d  to p r o c e s s the water l i c e n c e a p p l i c a t i o n . a p p e a r t h a t NCPC e x p e c t e d t h a t  Despite as  advice  given  this  change w o u l d  an e n v i r o n m e n t a l  s t a t e m e n t w o u l d n e e d t o be p r e p a r e d o f one s h o u l d  did not hire a consultant  Water Board inadequate  The  impact  have begun a t t h a t  contrary  was n o t h e l d  be  to issue  Regulations  of  and  be i s s u e d .  botanical  because  f o r t h e N.I.W.A. had n o t been  a f t e r the hearing  t h e Water B o a r d  surveys u n t i l  promulgated.  informed  about t h e e n v i r o n m e n t a l  NCPC d i d n o t i n i t i a t e  was  i t would n o t  time  t h e p r o j e c t w o u l d have t o be s u p p l i e d  could  hearing,  the hearing  that  a licence at that  NCPC t h a t more i n f o r m a t i o n  t o be  licence.  as a l i c e n c e  On t h e same day t h a t  t h e Water B o a r d d e c i d e d  Immediately  was f o u n d  t o the  of a l l p a r t i c i p a n t s i nthe  t o be h e l d ,  the  of  The p r e l i m i n a r y  s t a t e m e n t w h i c h was s u p p l i e d  to the expectations  possible  t i m e , NCPC  f o r the purpose o f i s s u i n g a water  decision process.  impact  t o undertake the preparation  f o r t h e May, 1972 h e a r i n g  May, 197 2 h e a r i n g  Board  and t h a t work on t h e  s u c h a s t a t e m e n t u n t i l M a r c h , 1972. environmental  occur.  by t h e Chairman o f t h e Water  e a r l y a s November, 1971 t h a t  preparation  I t does n o t  before further  a f t e r the Regulations  effects  a licence biological had  - 151  actually  -  been p r o m u l g a t e d , w h i c h was  f o u r months a f t e r  the  i n September,  hearing.  A h e a r i n g c o u l d have been h e l d i m m e d i a t e l y Regulations  were p r o m u l g a t e d  h a v e recommended on t h a t time. of  Due  until  January,  1972  and  issuance of a water  January,  1973  of new  Otter  i n the  the p r o j e c t .  i n f o r m a t i o n had  hearings,  requests  L a k e and  1973  and  not  held  the  indicated  f o r an  reduced  The  hearing,  licence  that  the  increased  compensation  the Water  been s u p p l i e d t o s u p p o r t  the economic v i a b i l i t y  grant that  these  NCPC's insufficient changes.  t h e Water B o a r d ' s c o n s u l t a n t ,  o f the p r o j e c t would not  the r e s t r i c t i o n s  Board  to permit c o n s t r u c t i o n  Water B o a r d d i d n o t  t o s t u d i e s made by  by  completion  h e a r i n g was  r e q u e s t s , however, s i n c e i t d e t e r m i n e d  affected  at  Falls.  t o i s s u e a water  According  licence  o f t h e p r o j e c t d e p e n d e d on  r a n g e on A i s h i h i k  F o l l o w i n g the January, decided  delays  could  t e r m s o f i t s a p p l i c a t i o n between  Water B o a r d g r a n t i n g i t s new  flows over  the  t h e Water B o a r d  s t u d i e s , the next  the economic v i a b i l i t y  storage  after  197 3.  NCPC c h a n g e d t h e May,  the  and  t o NCPC's own  the necessary  1972,  imposed  i n the  be  severely  licence.  NCPC d i d n o t d e c i d e t o a c c e p t not  undertake the d e t a i l e d design  April,  1973.  plans,  i tfelt  constructed the  that  the c o n d i t i o n s the project  o f t h e water  should  a t a l l . As a r e s u l t ,  f o r construction  construction  on t h e p r o j e c t .  NCPC a l s o d e c i d e d order  This  crash  until  the necessity  i tdecided  construction  The c r a s h  operating  schedule  f o r construction  the fact  that  had n o t b e e n  s c h e d u l e was a l s o u n s u c c e s s f u l i n  m e e t i n g i t s o b j e c t i v e , and t h e a d d i t i o n a l c o s t and  t o begin  t h e w i n t e r o f 1974-75.  p r o g r a m was i m p l e m e n t e d d e s p i t e  completed.  and o t h e r  o f i n s t a l l i n g and  d i e s e l generators during  detailed preparations  licence  i t c h o s e n o t t o make  t o adopt a c r a s h  to prevent  operating  until  p e r h a p s n o t be  n e c e s s a r y e x p e n d i t u r e s on d e t a i l e d d e s i g n  preparations  the  of the project  A l t h o u g h NCPC d i d n o t have any a l t e r n a t i v e  were s o s e v e r e t h a t  in  t h e w a t e r l i c e n c e and d i d  d i e s e l generators during  of i n s t a l l i n g  the winter  o f 1974-75  was $4 m i l l i o n .  It  i s likely  before project in  that  t h e d e c i s i o n t o adopt t h e c r a s h  d e t a i l e d preparations  f o r the construction  schedule of the  h a d been c o m p l e t e d r e s u l t e d i n a s i g n i f i c a n t  the f i n a l  cost  of the p r o j e c t .  to cost  $17 m i l l i o n  finally  cost  a t the s t a r t  $39 m i l l i o n .  increase  The p r o j e c t was e s t i m a t e d o f c o n s t r u c t i o n , and  The  decision  and  generally  and  an i n e f f i c i e n t  III. A.  process  153 i s marked, t h e n , b y a  unsatisfactory  water  confusing  l i c e n c i n g process  and c o s t l y c o n s t r u c t i o n  phase.  FACTORS AFFECTING THE DECISION PROCESS AND OUTCOME Structure  o f the Decision  System  T h e r e a r e two d i f f e r e n t c h a r a c t e r i s t i c s o f t h e d e c i s i o n system which a f f e c t e d  the progress o f the decision-making  p r o c e s s and t h e outcome o f t h e p r o j e c t . the  a l l o c a t i o n of functions  The f i r s t  concerns  and r e s p o n s i b i l i t i e s t h a t  taken during  the course of planning  the  and t h e s e c o n d c o n c e r n s t h e n a t u r e o f t h e  project,  were  and d e v e l o p m e n t o f  r e l a t i o n s h i p between t h e Water B o a r d , NCPC and DIAND.  1.  The A l l o c a t i o n o f R e s p o n s i b i l i t y  Certain actors The  r e s p o n s i b i l i t i e s were assumed by e a c h o f t h e m a j o r i n the decision process  project.  a c t u a l d i v i s i o n o f r e s p o n s i b i l i t i e s a p p e a r s t o have  b e e n an i m p o r t a n t problems t h a t it  f o r the Aishihik  element t h a t  arose during  the project's  allocated a large proportion  to the planning  contributed  t o many o f t h e  history,  of the a c t i v i t i e s  and d e v e l o p m e n t o f t h e p r o j e c t  since essential  exclusively  t o NCPC.  NCPC had t h e r e s p o n s i b i l i t y o f u n d e r t a k i n g t h e f o l l o w i n g tasks:  estimation  o f demand, s e l e c t i o n o f t h e p r o j e c t ,  design to  support  cost the  of the project,  supplying  t h e necessary  i t s a p p l i c a t i o n f o r a water  estimates,  and i m p l e m e n t i n g  stages o f planning  information  licence,  the project.  formulating A l l of  and d e v e l o p m e n t o f t h e p r o j e c t  came u n d e r t h e p u r v i e w o f NCPC a n d , a s shown b e l o w , no other  a g e n c y became i n v o l v e d  In o r d e r  t o accomplish  NCPC r e l i e d  The  this  extensively  i n many o f t h e s e  range o f r e s p o n s i b i l i t i e s ,  on i t s  consultants.  Water B o a r d was c h a r g e d w i t h  the r e s p o n s i b i l i t y of  i m p l e m e n t i n g t h e N.I,W.A., and t h e r e f o r e w h e t h e r NCPC's p r o p o s a l the  water r e s o u r c e s ,  necessary  The  represented  t o make t h i s  M i n i s t e r s who were i n p l a c e  were u l t i m a t e l y r e s p o n s i b l e and  consisted  decision.  between 1971 a n d 1976  f o r a l l o f NCPC's a c t i o n s ,  The d i r e c t r o l e p l a y e d  o f making s p e c i f i c  by these  d e c i s i o n s , which  to accept  a l l o f t h e Water B o a r d ' s  d e c i s i o n to request  i n t o NCPC's h a n d l i n g  of the p r o j e c t .  Ministers  1971,  the  recommendations,  an i n d e p e n d e n t r e p o r t  o v e r r u n , and t h e d e c i s i o n n o t t o h o l d  Board's  include:  d e c i s i o n t o u s e t h e N.I.W.A. i n September,  decisions the  f r o m NCPC t h e  f o r t h e a c c e p t a n c e o r r e j e c t i o n o f t h e Water  recommendations.  the  had t o d e c i d e  t h e optimum u s e o f  and t o a c q u i r e  information  tasks.  a public  on t h e c o s t inquiry  -  By  v i r t u e of  the  DIAND o f f i c i a l s  155  positions may  -  they h e l d ,  have p l a y e d  important  project's  h i s t o r y , although there  available  that  are  progress of  the  project.  The  most n o t e w o r t h y c h a r a c t e r i s t i c o f  the  responsibilities  of  the  i s that  no  actors  influenced  project. may  investigate estimates,  The  absence of  such  to  schedule the  these functions  to t h i s p o s s i b l e that  of  affected  the  and  to  development  thoroughly  planning  and  of  problems  cost  the  project  associated  p a r t i a l l y ^attributable  decision  p a r t i c i p a t i o n of  at  were no  strong  system.  additional  It is  organizations  development of  project  countervailing  some o f NCPC's a c t i o n s , the  and  the  the  its final  on  the  course of  outcomes.  influences  Water B o a r d  Water B o a r d ' s h e a r i n g s may  a substantial influence the  important  have l e d t o a more s a t i s f a c t o r y outcome.  Although there  had  be  weakness i n t h e  these stages i n the  intervenors  most  implementation  may  that  t o NCPC  a l t e r n a t i v e s , t o p r o v i d e more a c c u r a t e  w i t h each of  p r o j e c t may  a l l o c a t i o n of  have l i m i t e d NCPC's i n c e n t i v e  and  of  countervailing  Thus, the  in  the  affected  outcome  planning  more c a r e f u l l y t h a n i t d i d .  concluded  the  external  the  the  records  the  many o f  t h a t were made d u r i n g  influences  roles in  few  d e c i s i o n p r o c e s s and  i t s consultants  decisions  senior  these i n d i v i d u a l s s i g n i f i c a n t l y  the  and  certain  still the  and  have  history  First,  156 -  t h e i n t e r v e n t i o n o f Mr. R u s s e l l A n t h o n y a t t h e  May, 1972 h e a r i n g t h e Water B o a r d  a p p e a r s t o be t h e f a c t o r t h a t  to decide  that i t could not issue a  water l i c e n c e a t t h a t time. may have b e e n r e s p o n s i b l e the  licence,  that the  the information  o f a water  opportunity directly  the issuance of  the Board might s t i l l  have  a result  of this  decided  s u p p l i e d by NCPC was i n a d e q u a t e f o r  licence,  to request  responsible  information.  Nevertheless,  t o cause a d e l a y  and gave t h e W a t e r B o a r d t h e  more i n f o r m a t i o n w i t h o u t  for delaying  delay,  i nthe  making i t  the l i c e n c i n g  NCPC was a b l e  This additional information  process.  t o gather  more  c a u s e d NCPC  s u b s t a n t i a l l y change t h e c o n d i t i o n s o f i t s w a t e r l i c e n c e  application: intervention of  single intervention  f o r delaying  i n t e r v e n t i o n was s u f f i c i e n t  issuance  to  This  p u r p o s e o f d e c i d i n g upon a w a t e r l i c e n c e .  this  As  although  caused  The d e l a y  f r o m Mr. A n t h o n y ' s  c o u l d t h e r e f o r e have l e d t o t h e c o n c e p t u a l i z a t i o n  a better plan  f o r the p r o j e c t .  Second, t h e c r i t i c i s m s provided  resulting  o f t h e adequacy o f i n f o r m a t i o n  by NCPC c o n c e r n i n g  the environmental e f f e c t s of  the. p r o j e c t which, were l e v e l l e d a t t h e Water Board's h e a r i n g s  by a number o f p a r t i c i p a n t s may have h e l p e d  to  support  t h e Water B o a r d i n r e q u i r i n g t h a t t h e l i c e n c e a d h e r e t o environmental c o n s t r a i n t s .  - 157 The  Water Board  thorough  of  not, the  have  been  however,  project,  design,  its  procedures  consideration of  otherwise did  and  on the  the  have  a  reliability  directly affect  2.  Inter-Organizational factor  process  from  and the  Water Board  by  it  key  project  the  NCPC was  it  is  the  and  did  the  decision-making that  both  NCPC  This  hindered  the  decision-making  process  a greater to  Water Board then  opportunity  fulfill  a l l of for  to  the  question obligations  a water  d i r e c t l y questioned  the  the  actions  licence  this  report  would  authority  company and n o t  even more water  a n d NCPC d i d n o t  NCPC's  account  a private  perhaps  approached  project  the  same M i n i s t e r .  and  carefully into  If  of  need  occasions.  same M i n i s t e r ,  more  selection  the  it  i f  on the  implemented.  smoothly i s  under  Perhaps  process  to  was n e c e s s a r y  several  was  prevented  an a p p l i c a n t  on  licencing  might  Relationships  report  N.I.W.A.,  than  estimates,  and r e s p o n s i b i l i t i e s o f the  project  features  cost  p r o g r e s s i n g more  p r o v i d i n g NCPC w i t h  whether  of  may h a v e  may h a v e  more  The w a t e r  the  how t h e  that  in  significant effect  o n some o f  Another  proposed  case.  not  arrangement  the  resulted  have  of  the  a Crown  likely  that- i t  would  licencing  process  with  to taken  Water  Board.  corporation, have  more  care.  B.  Differences  It  i s evident  perceptions  158 -  i n Objectives  and  Perceptions  t h a t major d i f f e r e n c e s  i n o b j e c t i v e s and  between NCPC a n d t h e Water B o a r d i n h i b i t e d  the  smooth p r o g r e s s o f t h e d e c i s i o n  The  most i m p o r t a n t o p e r a t i o n a l  process,  objective  t h a t NCPC p u r s u e d  o v e r most o f t h e c o u r s e o f t h e A i s h i h i k p r o j e c t , in  its initial  site.  As a r e s u l t ,  receive of  objectives  Section  stages,  was t o d e v e l o p t h e A i s h i h i k  a n o t h e r o f NCPC's o b j e c t i v e s was t o  a s u i t a b l e l i c e n c e t h a t would p e r m i t  the project  The  planning  beginning  construction  t o p r o c e e d w i t h o u t any u n n e c e s s a r y  o f t h e Water B o a r d were n o t a s  9 o f t h e N.I.W.A. s t a t e s  delays.  straightforward.  that:  The o b j e c t s o f t h e b o a r d s a r e t o p r o v i d e f o r t h e c o n s e r v a t i o n d e v e l o p m e n t and u t i l i z a t i o n o f t h e w a t e r r e s o u r c e s o f t h e Yukon T e r r i t o r y and t h e N o r t h w e s t T e r r i t o r i e s i n a manner t h a t w i l l p r o v i d e t h e optimum b e n e f i t t h e r e f r o m f o r a l l Canadians and f o r t h e f u t u r e r e s i d e n t s o f t h e Yukon T e r r i t o r y and t h e N o r t h w e s t T e r r i t o r i e s in p a r t i c u l a r . 1 The a  objectives  p u r s u e d by t h e Water B o a r d were  f u n c t i o n o f i t s j u d g e m e n t s a s t o what c o n s t i t u t e d t h e  optimum u s e o f t h e w a t e r r e s o u r c e s River.  outlined  o f the East  Aishihik  A n o t h e r o f t h e Water B o a r d ' s o b j e c t i v e s was t o  ensure that  it  therefore  i t fulfilled  the provisions  i n t h e N.I.W.A. as f u l l y  was s u c c e s s f u l  and d u t i e s  as p o s s i b l e ,  and t h a t  i n e s t a b l i s h i n g i t s e l f a s an e f f e c t i v e  w a t e r management a g e n c y .  Consequently, i t intended  that  - 159 NCPC w o u l d about  the  was t o  be  have  t o meet  effects  the  its  project  before  the  Aishihik  project  before  it  supplied sufficient  Water Board  to  have  that  because  perceived  a water  for  information  a water  licence  that  the  requirements  established  unnecessary  in  the  encumbrance.  NCPC m a n a g e m e n t ' s  indicative  this  Board's respect under  o f NCPC's  the  It  for  for the  N.I.W.A.,  appears  the  i t  more procedural amounted  statement  Report on A i s h i h i k , towards  the  decision,  The f o l l o w i n g  attitude  implemented  information to  Water B o a r d ' s requests  and the  an  s h o u l d be  licence issued.  NCPC h a d a l r e a d y made  information,  Water  requests  issued.  NCPC d e c i d e d t h a t well  of  a l l of  may  to made  be  influence of  the  Board: The w a t e r l i c e n c i n g p r o c e s s s t i l l r e m a i n s o n e o f t h e most u n p r e d i c t a b l e and c h a l l e n g i n g o b s t a c l e s i n t h e way o f p r o g r e s s i v e p l a n n i n g and i m p l e m e n t a t i o n o f f u t u r e (and c u r r e n t ) p r o j e c t s n e c e s s a r y f o r t h e o r d e r l y and e c o n o m i c a l development o f power r e s o u r c e s i n the T e r r i t o r y . 2  This and  statement, actions  the  progress  a number o f  made b y NCPC d u r i n g t h e  indicates that adversary.  i n a d d i t i o n to  NCPC p e r c e i v e d o f  Such an a t t i t u d e of  the  decision  the  other  history of Water Board  c e r t a i n l y would process.  statements  the as  have  project, an hindered  160  r-  C. An  Experience with the Decision entirely  first  project.  hydroelectric  Lack  water l i c e n c i n g process a hydro  important during  facility cause  o f comparable  such  that  t o be i s s u e d  encountered  to conflicting  t h e Water  that  i n dealing  very  few o f t h e s e  with t h i s  of the participants  new t y p e o f p r o c e s s .  o f t h e N.I,W.A.  of certain procedural  perceptions of the r o l e  led  requirements, and p u r p o s e o f  Board.  Some o f t h e m a i n p r o b l e m s e n c o u n t e r e d f o r t h e water l i c e n c e apparent  failure  during the decision  include:  of a l l participants  i t was n o t p o s s i b l e  section  process  t h e A i s h i h i k w a t e r l i c e n c e was  according t o the .provisions  to misunderstandings  that  were  i n the decision  Inexperience with the implementation  The  built  a s t h e A s i h i h i k was p r o b a b l y an  some i n d i v i d u a l s i n v o l v e d  any e x p e r i e n c e  process  size  and w i t h t h e d e s i g n and c o n s t r u c t i o n  N.I.W.A., i t i s a p p a r e n t  and  was a l s o  of experience with the  o f many o f t h e p r o b l e m s t h a t  may have e x p e c t e d  had  project  the h i s t o r y o f the project.  Although  likely  The A i s h i h i k  project  by NCPC f o r many y e a r s .  of  Process  new w a t e r l i c e n c i n g p r o c e s s was f o l l o w e d  for the Aishihik the  r-  to issue  a water l i c e n c e  15(2) o f t h e N.I.W.A. w i t h o u t  h a v i n g been  promulgated.  to realize under  the Regulations  -  161 -  NCPC's r e l u c t a n c e  to supply  the  Water B o a r d .  Given the M i n i s t e r ' s  the  Water Board's recommendations,  best by  i n t e r e s t to provide  adequate i n f o r m a t i o n  t o do s o r e s u l t e d i n d e l a y s licence, not  a l l o f NCPC's  NCPC a l s o d i r e c t l y  as p o s s i b l e .  the  fact  that  information  the necessity  by t h e M i n i s t e r  i t deems n e c e s s a r y  N.I.W.A.  did  n o t have a v e r y  the  Water B o a r d ' s  The  fact  that  with greater  This  action  of providing despite  t o do s o , and d e s p i t e  i s very  t o r e q u i r e any  clearly  stated i n  i n d i c a t e s t h a t NCPC d e c i s i o n - m a k e r s  good u n d e r s t a n d i n g o f t h e e x t e n t  of  jurisdiction.  senior  DIAND o f f i c i a l s  d i d not provide  d i r e c t i o n i n t h e p r o c e s s may a l s o  a l a c k o f e x p e r i e n c e on t h e p a r t It  o f a water  i t requested,  t h e Water B o a r d ' s a u t h o r i t y  the  Failure  o f a l i c e n c e which d i d  t h e Water B o a r d w i t h t h e i n f o r m a t i o n d i r e c t i o n given  required  requests.  questioned  the  i t was i n NCPC's  i n the issuance  and i n t h e i s s u a n c e  grant  acceptance of  a l l o f the information  t h e Water Board as p r o m p t l y  to  NCPC  indicate  o f these i n d i v i d u a l s .  a p p e a r s r e a s o n a b l e t o assume t h a t  i f p e r s o n s such as  Mr.  D. Hunt, who was a member o f t h e C o m m i s s i o n  and  Assistant  and  Mr. B. R o b i n s o n , who was C h a i r m a n o f t h e C o m m i s s i o n  and  D e p u t y M i n i s t e r o f DIAND, were c o g n i z a n t  Deputy M i n i s t e r  r e s u l t s o f NCPC's a c t i o n s w i t h  f o r Northern  respect  f o r NCPC  Development,  of the l i k e l y  t o t h e water  licencing  p r o c e s s , they would have i n s t r u c t e d  undertake  the necessary  and  s u r v e y s and s t u d i e s  f o r a water  licence.  NCPC's a c t i o n s do n o t ,  however, a p p e a r t o have b e e n s c r u t i n i z e d  the various p a r t i c i p a n t s  the water l i c e n c i n g for  the Aishihik  stressed  that  the in  process, the entire decision  than  i tdid.  a l s o took  little  with  process  progressed  r e g a r d i t must  l i c e n c e p r o c e s s was  p l a c e d u r i n g an e a r l y  t h e development o f environmental  surprising  individuals.  one e v e r made u n d e r t h e N.I.W.A., b u t  l i c e n c i n g process  proceedings  have  In t h i s  t h e A i s h i h i k water  not only t h e f i r s t  by t h e s e  had g r e a t e r e x p e r i e n c e  p r o j e c t would p r o b a b l y  much more s m o o t h l y be  promptly,  to respect a l l o f the procedural requirements i n  applying  Had  NCPC t o  i n Canada i n g e n e r a l .  assessments  stage  and r e v i e w  I t i s thereforenot  t h a t t h e m a j o r a c t o r s a p p e a r t o have h a d v e r y  e x p e r i e n c e w i t h t h e t y p e o f p r o c e s s p r e s c r i b e d by  t h e N.I.W.A.  A t t h e same t i m e licencing design  t h a t NCPC was d e a l i n g w i t h t h i s  p r o c e s s , i t was a l s o  an o n - g o i n g projects. built  responsible f o r the engineering  and c o n s t r u c t i o n o f t h e p r o j e c t .  most p u b l i c power u t i l i t i e s ,  new w a t e r  In contrast with  NCPC was n o t a c c u s t o m e d t o  p r o c e s s o f d e s i g n i n g and c o n s t r u c t i n g h y d r o The A i s h i h i k  p r o j e c t was t h e f i r s t  b y NCPC s i n c e t h e W h i t e h o r s e  Rapids  of i t s size  p l a n t was  installed the  i n t h e 1950's.  NCPC's l a c k o f e x p e r i e n c e  d e s i g n and c o n s t r u c t i o n  may t h e r e f o r e  have h a d s i g n i f i c a n t  outcome o f t h e p r o j e c t . in  this  area,  perceived the was,  of projects  that  the task  such as t h e A i s h i h i k  a d v e r s e e f f e c t s on t h e  As a r e s u l t  f o r instance,  of a lack of experience  NCPC d e c i s i o n - m a k e r s may  of designing  and  p r o j e c t was g o i n g t o be much s i m p l e r and t h a t  consultants  i tcould  afford to rely  to design the project  cost  estimates  detailed  than i t a c t u a l l y  very heavily  completed p r i o r construction  D.  f o r construction  construction.  encouraged  detail,  f o r t h e p r o j e c t more c a r e f u l l y ,  to construction,  on i t s  and t o manage i t s  alternatives i n greater  preparations  have  constructing  G r e a t e r e x p e r i e n c e may, on t h e o t h e r hand, have NCPC t o i n v e s t i g a t e  with  prepare  have t h e  of the project  and t o a v o i d  the crash  schedule.  Lack o f Resources  In a d d i t i o n  to lacking experience  i n the planning  development o f h y d r o e l e c t r i c p r o j e c t s , o t h e r t e c h n i c a l and p r o f e s s i o n a l not  have a l a w y e r , h y d r o l o g i s t  have b e n e f i t t e d  greatly  NCPC a l s o  resources.  lacked  NCPC d i d  or geologist,  and i t may  from h a v i n g p e o p l e w i t h  b a c k g r o u n d s on i t s s t a f f .  and  Because i t l a c k e d  these  such  resources,  NCPC was c o m p l e t e l y d e p e n d e n t upon i t s c o n s u l t a n t s f o r important elements i n the planning The a  small  serious  professional question  and d e s i g n o f t h e p r o j e c t .  and t e c h n i c a l s t a f f  about t h e c a p a c i t y  d e s i g n and c o n s t r u c t  the project.  NCPC had r a i s e s  i t had t o p l a n ,  IV.  164 -  PROBLEMS AFFECTING THE OUTCOME  The  f o l l o w i n g p r o b l e m s had s i g n i f i c a n t  e f f e c t s on t h e  outcome o f t h e p r o j e c t : Inaccurate  cost  e s t i m a t e s were  formulated.  NCPC made c e r t a i n d e c i s i o n s w h i c h i n d e p e n d e n t l y  added  to the cost o f the p r o j e c t . NCPC d i d n o t u n d e r t a k e any t h o r o u g h i n v e s t i g a t i o n o f alternatives. The  r e a s o n s b e h i n d why e a c h o f t h e s e p r o b l e m s  are, an  f o r t h e most p a r t , v e r y  a d e q u a t e body o f i n f o r m a t i o n  these problems developed be  difficult  stressed  only  that  to ascertain,  since  on t h e r e a s o n s why e a c h o f  i s not a v a i l a b l e .  the following  occurred  I t must  set of explanations  therefore  can  be t e n t a t i v e .  A.  Cost  Estimates  The  fact  that  inaccurate  cost  e s t i m a t e s were f o r m u l a t e d  have b e e n t h e r e s u l t o f t h e f o l l o w i n g O v e r - o p t i m i s m on t h e p a r t the  likely  factors:  o f NCPC d e c i s i o n - m a k e r s  cost of the project.  may  The f o l l o w i n g  about  statement  made by Mr. S t e e n o f NCPC t o Mr. Lowe, NCPC's G e n e r a l Manager, on O c t o b e r latest of  this  cost  23, 1972 on t h e s u b j e c t  estimate provides  factor:  of the  an example o f t h e p r e s e n c e  Since the estimate f o r the transmission l i n e i n t o the g r i d from t h e A i s h i h i k s i t e i s $1.5 m i l l i o n , we c o u l d be l o o k i n g a t a t o t a l c a p i t a l c o s t o f $17.7 m i l l i o n - i f Duguid's e s t i m a t e i s r i g h t . I f e e l we s h o u l d be a b l e t o c u t t h i s down by c e r t a i n e n g i n e e r i n g and a d m i n i s t r a t i v e t a c t i . e . we've g o t Mooney on o u r s i d e ! 3 Crippen Engineering  was p l a c e d  i n a s i t u a t i o n which  gave i t an i n c e n t i v e t o p r o d u c e e s t i m a t e s t h a t help be  assure approval  responsible  f o r design  construction. be  quite  of the p r o j e c t , studies  since  The r e s p o n s e t o s u c h an i n c e n t i v e c a n  unconscious;  there  i s no e v i d e n c e t h a t  construction  given  schedule,  of construction  decision to hold  the  d e c i s i o n t o adopt a c r a s h  were b o t h made d u r i n g this  being  t h e s p r i n g o f 1973.  i n October,  i s therefore  fact  the  p r o j e c t was $16.2 m i l l i o n ,  the  estimated  estimates.  the cost  and  schedule Evidence given  1972 t h e e s t i m a t e d  c o s t was s t i l l  by  cost of  and i n December, 1973  only  $17.82 m i l l i o n  of the transmission  these d e c i s i o n s  had a s i g n i f i c a n t  of  then t h i s  the project,  of cost  construction  the  both excluding  made p r i o r t o t h e  b a c k on d e t a i l e d p r e p a r a t i o n s  lack of consideration that  to the e f f e c t o f the  i n the formulation  The  of  to assure  and t o t h e e f f e c t o f t h e  lack of d e t a i l e d preparations start  Crippen  o f the p r o j e c t .  Inadequate c o n s i d e r a t i o n crash  i t was t o  and management o f  i n t e n t i o n a l l y minimized estimates of costs approval  would  line.  If  e f f e c t on t h e c o s t  e f f e c t i s not r e f l e c t e d i n  the  cost estimates  the  time t h a t t h e s e  B.  hack o f D e t a i l e d  The  reasons  behind  expenditures  t h a t were p r e p a r e d  preparations  Preparations  NCPC's d e c i s i o n t o a v o i d  tendering  are very  design,  c o n t r a c t s and o t h e r  difficult  detailed  to ascertain.  The NCPC  "... t h e l a c k o f a n s w e r s  i n d e c i s i o n s d i c t a t e d a much s l o w e r  that engineering  making  preparation of contract  management's r e p o r t e x p l a i n s t h a t : and  subsequent t o  d e c i s i o n s were made.  on d e t a i l e d  specifications,  166 -  money was n o t w a s t e d  approach t o ensure i n case  a suitable  4  l i c e n c e was n o t f o r t h c o m i n g " . a similar  explanation  This explanation  The D a l b y R e p o r t  f o r this decision.^  i s very  difficult  NCPC d i d n o t have any a l t e r n a t i v e case use  a "suitable" diesel  to accept, plans  however,  since  to utilize i n  l i c e n c e was n o t o b t a i n e d ,  except t o  generation.  In a d d i t i o n , i t i s apparent t h a t t h e l i c e n c e  that the  Water Board d i d i s s u e - t h e c o n d i t i o n s o f which NCPC t o a v o i d u n d e r t a k i n g construction capability  provides  detailed  preparations f o r  - d i d not severely affect  the generation  o f t h e p r o j e c t i n t h e s h o r t term.  Board a l s o i n d i c a t e d i n very  clear  prompted  terms t h a t  The Water these  c o n d i t i o n s c o u l d be removed o n c e NCPC p r o v i d e d t h e  necessary  information  concluded  t h a t NCPG d i d n o t have s u f f i c i e n t  avoid  these  ensuring  t o support  preparations,  i t s requests.  a smooth c o n s t r u c t i o n  The f i r s t  have c o n s i d e r e d expenditures detailed  schedule.  explanations  concerns the p o s s i b i l i t y  f o r why  t h a t NCPC may  i t was a c c u s t o m e d t o m a k i n g , t h e c o s t s o f  design  and o t h e r  sense o f p r o p o r t i o n  preparations  could  expenditures  i s that.the  may have been t h e r e s u l t  on t h e p a r t o f NCPC d e c i s i o n - m a k e r s .  issuance  o f a r e s t r i c t e d water as t h e l a s t  of a long  C.  The C r a s h C o n s t r u c t i o n  schedule  o f an  emotional  The  resulting  NCPC d e c i s i o n - m a k e r s  i n a manner t h a t was e n t i r e l y  objective.  NCPC's j u s t i f i c a t i o n  avoidance of  series of frustrations,  f r o m t h e p r e s e n c e o f t h e Water B o a r d .  and  o n l y be  l i c e n c e may have b e e n  d i s a p p o i n t m e n t s and u n n e c e s s a r y encumbrances  may n o t have r e a c t e d  NCPC d e c i s i o n -  should  reaction  perceived  high.  necessary.  second p o s s i b l e e x p l a n a t i o n expenditures  were v e r y  have m o t i v a t e d  t h a t these  made o n c e i t was a b s o l u t e l y  these  was  t h a t i n c o m p a r i s o n t o t h e amount o f  makers t o c o n s i d e r  The  to  d e c i s i o n t o h o l d back on d e t a i l e d p r e p a r a t i o n s  made.  The  reason to  w h i c h were so i m p o r t a n t  T h e r e a r e two p o s s i b l e b u t p a r t i a l this  It is  rational  Schedule  f o r i t s d e c i s i o n t o adopt a c r a s h  i s t h a t i t would r e d u c e t h e c o s t o f e l e c t r i c i t y  by  preventing  generators believed crash  t h e need t o i n s t a l l  that  the additional costs  construction  meeting  possibility  construction  of  The  this  $4 m i l l i o n  i n meeting  construction  i t s objective.  s c h e d u l e was n o t s u c c e s s f u l i n  i ts t i l l  cost  that  the p r o j e c t could  involved  considerably  the cost of  t o use e x t r a  there  diesel  was a s t r o n g  generators.  the winter  ascertainable.  i n this  d e c i s i o n a p p e a r t o have  o u t w e i g h e d any p o s s i b l e b e n e f i t .  w o u l d NCPC h a v e d e c i d e d  than  possibility  n o t be c o m p l e t e d b e f o r e  1974-75 was a p p a r e n t l y  risks  that  p r o g r a m was s u b s t a n t i a l l y g r e a t e r  addition, the fact  that  and t h a t  the crash  i s available, i t i s likely  implementing  In  that  as t h e  i t s o b j e c t i v e , however, and a l t h o u g h no q u a n t i t a t i v e -  information  the  apparently  r e s u l t i n g from t h e  use o f d i e s e l generators,  was a s t r o n g  crash  I t was  s c h e d u l e w o u l d n o t be a s g r e a t  s c h e d u l e w o u l d be s u c c e s s f u l  The  and o p e r a t e d i e s e l  f o r t h e w i n t e r o f 1974-75.  cost of the extra there  168 -  t o embark on t h i s  Why,  crash  then,  construction  schedule?  One  possible explanation  previous the  for this  d e c i s i o n concerns the  e x p e r i e n c e o f NCPC d e c i s i o n - m a k e r s .  construction  installing  Prior to  of the A i s h i h i k project, the cost of  and o p e r a t i n g  d i e s e l g e n e r a t o r s was b y f a r  t h e most e x p e n s i v e component o f N C P C s t o t a l 1  operations.  The that  NCPC d e c i s i o n - m a k e r s these  the use o f d i e s e l t o reduce  may t h e r e f o r e have p e r c e i v e d  c o s t s would c o n t i n u e  o f NCPC's e x p e n d i t u r e s ,  The  169 -  t o be t h e most  and t h a t any e f f o r t  t o prevent  g e n e r a t o r s would a u t o m a t i c a l l y s e r v e  the cost of supplying  perceived relative  electricity.  importance  of diesel  c o s t s may a l s o have been s t r e n g t h e n e d accurate cost estimates  by t h e a b s e n c e o f It  t o make an i n f o r m e d  about the b e s t c o n s t r u c t i o n schedule  decision  to follow i f accurate  i n f o r m a t i o n about the c o s t o f t h e p r o j e c t The l i k e l y  generation  f o r the Aishihik project.  w o u l d have b e e n v e r y d i f f i c u l t  available.  important  costs resulting  itself  from  o f t h e c r a s h p r o g r a m w o u l d have b e e n r e d u c e d  the  was n o t implementation  i n proportion  t o t h e d e g r e e t o w h i c h t h e c o s t o f t h e p r o j e c t was underestimated.  Finally,  the lack of extensive experience  NCPC d e c i s i o n - m a k e r s projects  and  those  the f a m i l i a r i t y  and o p e r a t i n g d i e s e l  NCPC d e c i s i o n - m a k e r s account  with the construction of h y d r o e l e c t r i c  contrasts with  cost of i n s t a l l i n g  they  had w i t h t h e  generators.  The  may have t a k e n more s t r o n g l y i n t o  f a c t o r s with which they  familiarity.  on t h e p a r t o f  As a r e s u l t ,  associated with d i e s e l  had most  experience  t h e p r e v e n t i o n o f known c o s t s  g e n e r a t i o n may have b e e n  considered  more h e a v i l y t h a n thecosts " t o be a s s o c i a t e d w i t h a c r a s h 1  construction  schedule.  D. It  Investigation  170 -  of Alternatives  i s very d i f f i c u l t to explain  any  detailed  investigations  why NCPC d i d n o t u n d e r t a k e  of alternative  schemes.  Explanation  forthis  decision  difficult  considering  the fact  that  about t h e A i s h i h i k  site  when NCPC f i r s t  water l i c e n c e t o develop the s i t e  Between J u n e , of  field  It  and A p r i l ,  of the project,  inferior call  little  The l a c k  on A u g u s t  fora  31, 1971.  field  there  i s no r e c o r d  NCPC s e l e c t e d  t h a t any  were  the A i s h i h i k  undertaken.  site  of investigation of alternatives  i n the development o f a p r o j e c t  to question the veracity  best available explanation  o f NCPC's own  so  may  that i s  t o some o t h e r a l t e r n a t i v e , and i t w i l l  not f u l l y  investigation  1973, when NCPC began  inevitably  judgements.  i s n o t one t h a t  t o NCPC d e c i s i o n - m a k e r s , b u t i t i s p o s s i b l e did  was known  applied  of alternative projects  i s surprising that  have r e s u l t e d  The  site,  investigations  readily.  i s particularly  1971, when NCPC made i t s f i r s t  the A i s h i h i k  construction  very  generation  i s charitable  that  NCPC  recognize the importance o f i n v e s t i g a t i n g  a l t e r n a t i v e s to the A i s h i h i k .  Once NCPC d e t e r m i n e d  that  a new g e n e r a t i o n  f a c i l i t y was n e e d e d , and o n c e i t had  established  the A i s h i h i k  it  that  may h a v e c o n s i d e r e d  investigation  that  a p p e a r e d t o be a v i a b l e  the costs  involved  o f a l t e r n a t i v e s were g r e a t e r  site,  i n the  than the l i k e l y  benefits  t o be d e r i v e d  may have p e r c e i v e d alternative  171 from such i n v e s t i g a t i o n s .  that  i t was so u n l i k e l y t h a t  to the A i s h i h i k  could  NCPC a  superior  be f o u n d t h a t t h e  i n v e s t i g a t i o n o f a l t e r n a t i v e s w o u l d p r o b a b l y be a w a s t e d effort.  In a d d i t i o n ,  readily,  the e n t i r e process of the planning  of  the next a d d i t i o n  simplified  by s e l e c t i n g t h e A i s h i h i k  to the generation  and e x p e d i t e d .  have c o n s i d e r e d  and d e v e l o p m e n t  s y s t e m was  greatly  NCPC d e c i s i o n - m a k e r s may  t h i s t o be an i m p o r t a n t  NCPC's p e r c e p t i o n s o f l i k e l y have g r e a t l y  s i t e so  benefits  also  benefit.  and c o s t s  may,  then,  inhibited i t s motivation to investigate  alternatives.  V.  RECOMMENDATIONS  Some t i m e h a s e l a p s e d between t h e c o m p l e t i o n project  and t h e t i m e o f w r i t i n g  therefore  not possible  with respect  owing t o changes t h a t  f o r t h i s study.  t o make d e t a i l e d  to hydroelectric  of the Aishihik  recommendations  power p l a n n i n g  may h a v e a l r e a d y  It is  taken  i n t h e Yukon, place.  Recommendations c o n c e r n i n g t h e w a t e r l i c e n c i n g p r o c e s s a r e also  not necessary,  since  t h e p r i m a r y r e a s o n why so many  p r o b l e m s were e n c o u n t e r e d d u r i n g  t h e water  process  i s that  lacked  f o r the Aishihik project experience  i n dealing  with  i t .  licencing  a l l participants  Greater  experience  is  t h e most i m p o r t a n t means by w h i c h t h i s p r o c e s s may  be  improved.  -  172 -  However, i n v i e w o f t h e p r o b l e m s t h a t were during  the h i s t o r y of the A i s h i h i k p r o j e c t ,  r e c o m m e n d a t i o n s c a n be made w i t h r e s p e c t design in  1.  some  t h e Yukon.  to help  firms  employed t o u n d e r t a k e  for a project  should  a.  whether r e l e v a n t  studies  and  of the p r o j e c t .  An i n d e p e n d e n t p a n e l o f e x p e r t s the M i n i s t e r  feasibility  be i n e l i g i b l e f o r  to undertake d e t a i l e d design  manage c o n s t r u c t i o n  to advise  projects  These a r e :  Consulting  contracts  general  t o the s e l e c t i o n ,  and i m p l e m e n t a t i o n o f f u t u r e w a t e r power  studies  2.  encountered  should  be  established  and t h e p u b l i c o n :  a l t e r n a t i v e s are being  considered,  and b.  t h e adequacy and r e l i a b i l i t y o f s t u d i e s u n d e r t a k e n on t h e c o s t o f t h e p r o j e c t , and  This  i t s socio-economic  panel  should  consultants,  3.  NCPC s h o u l d  be g i v e n  but should  and l o n g  i t s benefits  and e n v i r o n m e n t a l adequate  funding  maintain only  prepare a report  s h o r t , medium  being  effects. to hire  an a d v i s o r y  f o r the M i n i s t e r  term p l a n s  on i t s  for electric  d e v e l o p m e n t i n t h e Yukon, b a s e d on a d e t a i l e d of  a l l relevant  generation.  capacity.  a l t e r n a t i v e sources of e l e c t r i c  power inventory power  - 173 CHAPTER  EIGHT  REFERENCES AND  NOTES  1.  Northern Inland Waters A c t , S e c t i o n  2.  NCPC, R e p o r t on A i s h i h i k ,  3.  D. S t e e n t o J . Lowe, 23 O c t o b e r  4.  NCPC, R e p o r t on A i s h i h i k ,  p.4-0.  5.  R. N. 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