Hearing into power-rate increase postponed because of issue with board member
A hearing that was to begin Monday into N.B. Power's request for rate increases of more than nine per cent over each of the next two years has been abruptly cancelled because of a car accident involving the acting chair of the New Brunswick Energy and Utilities Board.
In a letter to hearing participants sent Thursday afternoon, the board's deputy chief clerk, Melissa Curran, wrote that one of three board members scheduled to preside over the two-week hearing is suddenly unable to attend. Rules governing the hearing, known as Matter 552, prohibit it from proceeding because of that.
"Due to unforeseen events involving the availability of a member of the panel, the Board will no longer have a quorum to hear Matter 552, scheduled to begin next week," Curran wrote.
"As a result the Board has no choice but to postpone and reschedule the hearing scheduled for May 13 through 26."
N.B. Power is seeking increases of 9.25 per cent — 9 .8 per cent for residential customers.
The board scheduled a virtual meeting Friday morning to discuss rescheduling the hearing, which has been in the works since last September.
Vacancies for months
At that meeting EUB member Christopher Stewart explained that the board's acting chair, Stephanie Wilson, had been in a "reasonably serious" car accident Wednesday night that has left her unable to participate in next week's hearing.
"She suffered injuries in that accident," Stewart said. "It did become immediately apparent to us that she would be unavailable to attend or participate in the hearing that was due to begin next Monday."
In the legislature on Friday, Opposition Leader Susan Holt raised the issue during question period and asked why at least two board member positions at the EUB that have been vacant for several months have not been filled to prevent disruptions in its operation.
Currently, the EUB has three members, who all have been required to preside over every hearing.
Natural Resources and Energy Development Minister Mike Holland did not explain why there have been delays in appointing new members but said it will now be dealt with quickly.
Liberal Leader Susan Holt asked during question period why at least two board member positions at the EUB that have been vacant for several months have not been filled to prevent disruptions in its operation. (Ed Hunter/CBC)
"Circumstances have put the board in the situation where they find themselves down," Holland said. "We are aware of that.
"We are going to address it forthwith and right away."
Thousands of pages of evidence have been filed by N.B. Power and other interested parties for the review of the utility's plans for the next two years and and its request to raise rates substantially to improve its fragile financial condition.
Several experts from across North America were scheduled to testify over the next two weeks and multiple lawyers have been retained to represent various parties. That adds to the difficulty of finding an alternative two-week window that accommodates all schedules.
Board deals with variety of issues
According to legislation that governs the operation of the Energy and Utilities Board, it is meant to function with between three and six full-time members and up to two part-time members.
The legislation also has a requirement that at least three board members preside over hearings.
A surplus of board members helps the body regulate a number of issues simultaneously involving electricity, natural gas distribution, pipeline operations, petroleum pricing, mining disputes and claims and even intercity bus travel.
However, the board has been operating with a bare minimum of three members for several months. Last spring its former chair, Francois Beaulieu died suddenly. Two other members whose terms expired, including former MP John Herron, also departed.
Replacement members need to be appointed by the province but so far that has not happened.
Speaking to reporters following question period Friday New Brunswick Premier Blaine Higgs acknowledged his government has been delaying appointing members to EUB on purpose
Vacancies intentional, Higgs says
In a surprise revelation, he said the province has been studying whether to end petroleum price regulation in New Brunswick and thought that would lighten the body's need for members.
"A big part of the EUB's workload is in terms of monitoring regulated pricing," Higgs said.
" So if we didn't stay on that track with regulated pricing then there wouldn't be the requirement of the same number of members so that's been part of the issue."
Higgs agreed Wison's absence will require immediate action.
Holt called delays in appointing board members "poor management" and said the blame for the delayed hearing belongs to the Premier
Green Party Leader David Coon agreed.
"It's a failure of governance," Coon said. "Those vacancies have been there since last year."
The postponement will not affect N.B. Power operations. In March, the Energy and Utilities Board ruled the utility could begin charging customers higher rates on an interim basis. Residential customers received a 9.8 per cent increase on April 1.
Next week's hearing was meant to decide if those new amounts were justified or should be reduced with rebates paid to customers for any overcharges.
