Community group denied voice in conversation about P.E.I. electricity rate hikes

With just weeks to go before another proposed rate hike from Maritime Electric would kick in, the Island Regulatory and Appeals Commission has turned down an application from a group that wants to intervene on behalf of the public.

Maritime Electric is seeking to recoup $37 million in costs to restore electricity after post-tropical storm Fiona devastated the province's grid.

A co-operative called Energy Democracy Now! applied in December to be an intervener, stating in its application that "Island residents are facing another electricity rate increase, at a time when many simply cannot afford it."

Maritime Electric has proposed a 2.9 per cent increase in residential power rates to kick in March 1 to cover Fiona costs. That increase would be in place for five years.

The Island Regulatory and Appeals Commission has already approved another rate increase of 2.5 per cent to kick in the same day.

In total that would make an increase of 5.5 per cent over the rate set last October, and a 12 per cent increase compared with a year ago.

In its application for intervener status Energy Democracy Now! said it wants to "introduce a community voice at the table when proceedings on matters of public interest take place." 

Specifically, the group said it wanted the chance "to illustrate [Maritime Electric's] lack of preparedness for severe weather events related to climate change," and to argue the company's shareholders should be required to cover some of the costs.

In its rebuttal to the application, Maritime Electric told IRAC there was "no evidence to establish that the applicant can 'meaningfully contribute' to this proceeding," and that the group had not identified any expertise in "assessing the costs of public utilities, in the allocation of costs to operating or capital accounts, or knowledge of the objective of balancing timely cost recovery versus rate shock."

IRAC agreed with Maritime Electric, writing in its response that "the issues of energy democracy, energy policy, public ownership of energy utilities, and the transition to renewable energy" – all stated principles of Energy Democracy Now! – "are not at issue in this particular proceeding."

Thus, IRAC said it was "not satisfied that the Co-op is engaged in the subject matter of the proceeding, or that their submissions will assist the Commission in resolving the issues at hand."

Leo Broderick is listed on the application form as the president of Energy Democracy Now! Broderick is known for his long association with a number of social justice causes and for his work with the Council of Canadians.

He declined a request for an interview, saying his group needed to meet to discuss the response it received from IRAC.

While Nova Scotia and New Brunswick have designated advocates whose job it is to represent the public interests of consumers in rate hearings, P.E.I. has not.