Editorial, Vancouver Sun, May 13, 2010
Responsible governance demands that when voters are going to hold the government politically accountable for the actions of an agency that provides a public service, whether it is ferries, health or utilities, the government needs to have the levers in place to exercise some political direction over that organization.
So, while critics will rightfully point out that the short leash that is being tied to the B.C. Utilities Commission through the recently introduced Clean Energy Act goes against promises Premier Gordon Campbell made while in opposition, it is still the right thing to do.
Unfortunately, the new legislation goes too far when it exempts significant new energy projects from the scrutiny of the commission.
In so doing, it not only removes an important forum for public accountability in the vital area of energy development, it also eliminates an effective means of attracting the kind of informed criticism that can make good projects better and identify those that ought to be shelved.
Energy policy has been a work in progress for the B.C. Liberals and not all of the movement has been forward.
As The Vancouver Sun's energy reporter Scott Simpson pointed out last week, the province had introduced a series of plans, visions and updates before the latest version.
In the process, they divided BC Hydro into two entities before putting it back together again.
They have encouraged private enterprise to get into the electrical production business, then thrown up roadblocks to their success.
They have emphasized protecting domestic consumers, while encouraging a green-energy business strategy under which electricity could be an important product for export.
Part of the confusion has come from the conflicting signals that were being sent out from the government and the B.C. Utilities Commission.
The commission took seriously its mandate of protecting the interests of consumers by trying to ensure that new projects didn't needlessly drive up the price of electricity.
The province, meanwhile, had moved on to using energy policy as a means of achieving environmental goals, even if it meant that consumers would be paying more.
The new legislation usefully clarifies that the commission has to take into account a number of government objectives in addition to considering costs.
However, having been relieved of its role of reviewing new projects to see if they are necessary, the commission is now left with only the job of approving rates based on factors over which it no longer has any control.
That means the decision as to whether to proceed with new developments will rest entirely with BC Hydro and the government, which also has effective control over BC Hydro.
Since many of the energy purchase agreements between BC Hydro and private energy companies are being kept secret, without the scrutiny of the utilities commission, we will no longer have any independent, public monitoring of whether the interests of the public and electricity consumers are being served in this crucial sector of our economy.
The Clean Energy Act also calls for yet another energy plan, this one to be prepared by BC Hydro, that will not be overseen by the utilities commission.
As the legislature reviews this bill clause by clause in committee, MLAs from all parties should find a way to reinstate the B.C. Utilities Commission to a position where it can usefully serve the public while still respecting policy directions from the elected government.
