Powell River Energy Inc. (PREI) lost its bid to be excluded as a public utility under the Utilities Commission Act.
According to Energy Democracy for BC (ED4BC), on December 6, the BC Utilities Commission (BCUC) issued its final order in its inquiry into Powell River Energy Inc. The inquiry panel ruled that the company is a public utility governed by the Utilities Commission Act, an ED4BC media release stated. PREI owns and operates two hydro dams in qathet Regional District and is a subsidiary of Brookfield Renewable Partners LP.
Energy Democracy for BC is celebrating BCUC’s decision as a victory for the local community and BC residents generally, the release stated.
“Our citizens group, based in the qathet area, had applied for and been granted intervener status in this inquiry,” stated ED4BC president John Keller. “The inquiry panel accepted our argument that PREI could not rely on its corporate structure to avoid being regulated.”
Keller stated that ED4BC objected to PREI’s attempt to be excluded from BCUC oversight, seeing it in the context of other decisions to deny any corporate responsibility to the community.
“The owners of Powell River’s paper mill have cited uncertainty over whether PREI would continue to supply it with electricity as one factor in the mill’s recent closure,” stated Keller. “PREI’s parent company is incorporated in the tax haven of Bermuda, enabling it to avoid paying federal and provincial corporate taxes.”
Keller stated that among concerns ED4BC raised in the inquiry about the deregulation that PREI was seeking were that it would mean less oversight of the safety of local dams and the ability of affected parties to raise issues with BCUC about PREI’s operations would be lost.
“We also saw any decision in their favour as a dangerous precedent, as it would make it easy for other companies to say that they too should be deregulated,” stated Keller.
Hydro dams are central to the history of the qathet area, with City of Powell River being founded specifically because of the potential for local hydro to power a pulp and paper mill, according to Keller. The interest that residents have in these dams is reflected in the 34 interventions made to this BCUC hearing arguing in favour of BCUC’s continued oversight of PREI, he stated. These interventions included letters from the city and regional district.
“The BCUC decision is a positive example of a small community objecting to attempts by large corporations to exploit local resources without adequate oversight and responsibility,” stated Keller.
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