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https://www.cbc.ca/news/canada/new-brunswick/ministers-accountable-legislature-public-1.5891540
Ministers accountable to legislature, not public, says minister
Political panel discuses energy minister's letter to Energy and Utilities Board
CBC News· Posted: Jan 28, 2021 3:26 PM AT |
Irving Oil is seeking an increase to wholesale petroleum prices. Natural Resources and Energy Development Minister Mike Holland wrote a letter to the EUB saying they should act quickly on the matter. (Karissa Donkin/CBC)
A New Brunswick cabinet minister is standing by a colleague who wrote a letter to the Energy and Utilities Board that opposition MLAs are calling inappropriate.
Irving Oil is seeking an increase to wholesale petroleum prices that could cost New Brunswickers $60 million more per year.
Mike Holland, the minister of natural resources and energy development, wrote a letter to the EUB saying it should act quickly on the matter.
"It has been suggested that the current margin in New Brunswick is not enough to guarantee continuity of supply in the challenging COVID-19 global environment," Holland wrote.
"As a result I am supporting the application to review evidence in an expedited fashion and, if warranted, an interim order to increase the wholesale margin. If an interim order is warranted, I feel the severity of a possible supply issue means it should be issued at the earliest opportunity."
The letter provoked calls for Holland's resignation, since cabinet ministers don't normally involve themselves in matters before the EUB, an arms-length regulatory body.
Accountable to whom?
Justice Minister Ted Flemming said in the end cabinet ministers are accountable to the legislature, not the people of the province.
"In law the minister is accountable to the legislature," said Flemming.
"If you want to say 'I think it's public or I think it's [to the] premier,' you can have that opinion. But in law, he's accountable to the legislature,"
"We have some serious questions that we feel should be investigated and answered … with respect to the premier's direct involvement in this," said McKee.
"It's no secret that he's a former Irving Oil executive. So we feel that there's an issue of conflict of interest that could arise in this with the premier being involved. Did he have communications with Irving Oil about this?"
McKee said he wants the integrity commissioner to review the incident.
Flemming took issue with the characterization of the premier, adding no one would claim Flemming himself was a fan of the Irving family.
"K.C. Irving did everything in his power to get my grandfather [former Premier Hugh John Flemming] out of office in 1960 because he wouldn't toe the Irving line," said Flemming.
"I'm no poster boy for the Irvings here."
'It was inappropriate'
Green party Leader David Coon said the minister abused his power when he wrote a letter to the EUB because he holds all the cards when it comes to the board's future
"Underlying all of this, of course, is [the board] recognizing that the minister and the government has the opportunity to change the legislation under which they act," said Coon.
"The not too subtle implication would be 'If you don't hurry up your process, then you may just see your legislation changed so that there are new constraints on you in terms of the time available to render your decisions.' That's one of the underlying messages."
People's Alliance Leader Kris Austin said the minister and the government will essentially be accountable to the people in the next election.
https://www.cbc.ca/news/canada/new-brunswick/irving-oil-application-regulator-1.5878467
Minister's letter backing Irving Oil application 'inappropriate,' former EUB intervener says
Mike Holland draws criticism after urging EUB to act quickly on application for petroleum charge increase
· CBC News· Posted: Jan 19, 2021 5:00 AM AT
Natural Resources and Energy Development Minister Mike Holland wrote a letter to New Brunswick's Energy and Utilities Board, in which he said an Irving Oil application for petroleum price increases should be dealt with quickly. (Radio-Canada)
A letter sent by Natural Resources and Energy Development Minister Mike Holland telling the New Brunswick Energy and Utilities Board how he thinks it should deal with an Irving Oil Ltd. application is drawing criticism, but the province is not apologizing for it.
Holland sent the letter to the board on Jan. 6, one day after Irving Oil made an application to increase the amount petroleum wholesalers in the province can charge.
If approved, it could cost consumers up to $60 million more per year.
In the letter, Holland told the Energy and Utilities Board that industry members had "expressed concerns to government about the sufficiency of the current wholesale margin," and said he wanted the board to know he felt it should act quickly on the issues Irving Oil was raising.
"It has been suggested that the current margin in New Brunswick is not enough to guarantee continuity of supply in the challenging COVID-19 global environment," Holland wrote.
"As a result I am supporting the application to review evidence in an expedited fashion and, if warranted, an interim order to increase the wholesale margin. If an interim order is warranted, I feel the severity of a possible supply issue means it should be issued at the earliest opportunity."
Holland was not made available for an interview. But in an email Monday, Natural Resources Department spokesperson Nick Brown said the government approved of the letter's intent.
"Government felt that it was prudent to support an application by industry to ensure petroleum products remain available to New Brunswickers," Brown said in the email.
After CBC News reported on the letter, Green Party Leader David Coon called for Holland's resignation, saying the letter was an "egregious abuse" of power.
Letter could be a first
Hartland lawyer Peter Hyslop, a former Energy and Utilities Board public intervener, said he cannot recall a minister writing to the board directly in the past about a matter in front of it.
"Totally inappropriate," Hyslop said after reviewing the letter.
"I do see it as a serious abuse of the process."
Hyslop was appointed to represent the public interest at numerous board hearings by the former government of Bernard Lord.
Peter Hyslop is a former public intervener at the Energy and Utilities Board and its predecessor, the Public Utilities Board. He said letters from government ministers to the board about matters it has under review are "totally inappropriate." (Pat Richard/CBC News file photo)About the Author
Former public intervener asks to represent NB Power's residential ratepayers
Peter Hyslop gets support from P.E.I. consultant, who says residential customers need voice at rate hearings
· CBC News· Posted: Jun 14, 2017 6:00 AM AT
A former public intervener, Hartland lawyer Peter Hyslop is arguing residential customers need to be represented by their own lawyer at future rate hearings. (CBC)
With parties lining up to argue for higher residential electricity bills at NB Power's upcoming rate design hearing, especially for people who use electric heat, a former public intervener is arguing residential customers need to be represented by their own lawyer — and he is proposing himself for the job.
"It is necessary for the proper completion of the record in this application that the interests of the residential rate class be presented."
Year-long review
NB Power is in the middle of a year-long look at how it bills various customers for electricity. The review could result in prices charged by the utility changing dramatically.
Some of the most significant proposals are aimed at homeowners and apartment dwellers, including higher than average rate increases for that group, premium prices for electric heat and the possible adoption of different rates at different times of the day, different days of the week or different months of the year.
NB Power is undergoing a year-long review of how it bills various customers for electricity. (Shane Fowler/CBC)
Companies that are already on record as favouring some of those ideas, including Enbridge Gas New Brunswick and J.D. Irving Ltd. have their own lawyers who will be presenting evidence and arguments in support of their positions.
Enbridge has long argued electric heat prices are artificially low in New Brunswick, making it more difficult for the company to attract customers while J.D. Irving has expressed concern industrial rates are too high, in part, because evidence has shown NB Power undercharges homeowners.
'Advocate in the public interest'
Heather Black, the current public intervener, will be participating at the hearing but she is not legally permitted to represent the interests of any single group, including residential customers. Instead she is exclusively required to "advocate in the public interest," even if the public interest is not necessarily favourable to homeowners.
"Legislation prohibits me from representing or advocating on behalf of a particular class of customers," Black wrote in a statement to CBC News.
"My role is to assist the Board by submitting evidence and advancing arguments that consider the broader public interest, which has many — sometimes conflicting — components."
Residential consumers are NB Power's largest customer group, accounting for 46 per cent of the utility's in-province sales and Hyslop is arguing it needs aggressive and well-financed representation to avoid unfair treatment.
Asks utility to pay costs
In an unusual manoeuvre that began two weeks ago, Hyslop's legal assistant, Carolanne Power, applied to intervene in the rate design hearing as a residential customer and then gave notice she would be asking for Hyslop to represent her — and all other residential customers — at NB Power's expense.
"She will be seeking an Order from the Board directing (NB Power) to pay her costs for the intervention, including but not limited to legal fees, professional advisors and all proper and necessary costs and expenses related thereto," reads Power's application.
"I am of the view that the residential rate class must be represented in this matter to ensure that the proper evidence arguments and submissions before this Board can be properly presented," says O'Rourke's affadavit.
"In the absence of such evidence, representation and submissions I am of the view that a significant impact may result on today's residential rate class."
No response
NB Power did not immediately respond to questions about Hyslop's request that it pay his bills, but the request, if granted, could cost the utility hundreds of thousands of dollars.
The province has paid a number of private practice lawyers over the years to intervene at Energy and Utilities Board hearings, and the bill for expert and legal fees has never been less than $40,000 and several times exceeded $500,000.
Hyslop served as public intervener at a number of NB Power hearings more than a decade ago during the term of the Bernard Lord government.
The current rate design hearing is not scheduled until April 2018 but there are several months of pre-hearing activities, including the preparation of studies and expert evidence.
https://www.cbc.ca/news/canada/new-brunswick/nb-power-residential-representative-1.4162540
EUB delays ruling on intervener for NB Power residential ratepayers
Lawyer Peter Hyslop argues residential customers need someone to look after their interests alone at hearings
Peter Hyslop made his case Thursday to speak for NB Power's residential customers when the Energy and Utilities Board considers rate changes. (Pat Richard/CBC News file photo)
A decision on whether NB Power will have to pay for an intervener to represent residential ratepayers has been delayed while the Energy and Utilities Board considers the issue.
Hartland lawyer Peter Hyslop, a former public intervener, made his case Thursday to represent residential NB Power customers when the board holds rate hearings that could lead to higher electricity bills.
Hyslop suggested public intervener Heather Black isn't able to represent the best interests of residential customers, since they are just a part of the "public" covered by her mandate.
Th board is preparing for hearings on NB Power rates, which could lead to higher residential electricity bills. (Pat Richard/CBC)
"The public intervener has to wear many hats, which is a difficult role for her, so I'm at least coming forward. I'll do the best I can if the board rules in my favour."
For support, Hyslop cited cases he considered to be similar situations, but NB Power lawyer John Furey disagreed they were applicable.
Furey didn't have any problem with Hyslop representing residential customers, but he disagreed that NB Power should pay for the work.
Black, the present intervener, also disagreed with Hyslop, saying she was able to represent both the public and residential customers at the same time.
Board chair Raymond Gorman says a decision will be made shortly after the June 22 deadline for written responses. (Pat Richard/CBC)
The Energy and Utilities Board will come to a decision later, with chair Raymond Gorman stressing it was an important decision he didn't want to rush.
Gorman gave an opportunity to all parties involved to make written comments by June 22 at noon. Gorman said the board's written decision would follow shortly after that.
About the Author
Board nixes special intervener to defend residential users in NB Power hearings
Energy and Utilities Board concludes it does not have authority to appoint a residential intervener
· CBC News· Posted: Jul 07, 2017 12:08 PM AT
Peter Hyslop, a Hartland-based lawyer, had argued he should be appointed as the residential representative to the Energy and Utilities Board during NB Power's rate design hearings. (Pat Richard/CBC News file photo)
New Brunswick's Energy and Utilities Board has ruled it does not have the authority to order special funding for a lawyer to represent residential electricity users at upcoming NB Power hearings that will reshape how consumers are billed.
"The board finds that it does not have jurisdiction to grant intervener funding," it wrote in a three-page decision released late last week.
NB Power is involved in a rate design hearing, which could dramatically change the prices charged by the utility.
Peter Hyslop, a Hartland-based lawyer, argued in June that homeowners and apartment dwellers are NB Power's largest customer group and should be independently represented at hearings.
"Rate design is going to have significant impact on residential ratepayers," Hyslop said at the June 15 meeting.
There is no question that Mr. Hyslop would bring a meaningful contribution to the proceedings.
- Energy and Utilities Board
"The argument and position of residential ratepayers should be before this board."
NB Power is responsible for the expenses of electricity hearings and would have been the one to pay for the bills of a lawyer representing residential customers.
In its decision, the EUB said there is nothing in its governing legislation or in precedent-setting court rulings that allow for that arrangement.
"There is no question that Mr. Hyslop would bring a meaningful contribution to the proceedings," it wrote.
"However, the board concludes that it cannot be implied that intervener funding is of practical necessity in order to accomplish its jurisdiction."
Year-long hearing to reshape bills
Heather Black is the public intervener at the Energy and Utility Board's looking into NB Power's rate design application. (Robert Jones/CBC)
Heather Black, who is now the public intervener, is responsible for representing "the public interest" at the EUB hearings and is barred from advocating for any single group like residential customers.
Hyslop suggested that mandate, which was changed by the Alward government in 2013, meant Black would be unable to represent the best interests of residential customers in the way public interveners used to.
- EUB delays ruling on intervener for NB Power residential ratepayers
- Former public intervener asks to represent NB Power's residential ratepayers
NB Power is in the middle of a year-long EUB proceeding that is looking at reshaping how the utility bills various customers for electricity.
Some of the most significant proposals are aimed at homeowners and apartment dwellers, including higher than average rate increases for that group, premium prices for electric heat and the possible adoption of different rates at different times of the day, different days of the week or different months of the year.
https://www.cbc.ca/news/canada/new-brunswick/irving-oil-energy-board-margins-1.5886011
Irving Oil supporters and skeptics lining up on opposite sides of company price hike request
Energy and Utilities Board holds first hearing into requested wholesale margin increases today
Irving Oil says it needs an 'urgent' increase in petroleum margins to ensure product shortages do not hit consumers. (CBC News file photo)
An initial hearing into Irving Oil's request for increases in petroleum wholesale prices begins today in front of the New Brunswick Energy and Utilities Board with supporters raising the stark prospect of the company shutting down if it does not get what it is asking for and skeptics warning the board against being manipulated.
"We must be cautiously aware that no business is too big to fail," read one letter on the issue received and posted publicly last week by the EUB.
"They are playing the Board," read another about the company's application.
New Brunswick adopted petroleum price regulation in 2006 and put the Energy and Utilities Board in place to oversee it. Currently wholesalers are allowed to add 6.51 cents per litre to the price of motor fuels they handle (gasoline and diesel) and 5.5 cents per litre to furnace oil.
Irving Oil is applying for a 62.8 per cent (4.09 cent per litre) increase in the allowed wholesale margin for motor fuels and a 54.9 per cent (3.02 cent per litre) increase in the margin for furnace oil.
New Brunswick's Energy and Utilities Board has scheduled a full hearing into Irving Oil's request for wholesale petroleum price increases for March 30. It will hear arguments Monday for and against an emergency interim increase. (Robert Jones/CBC News)
The increases are substantially more than the 11 per cent growth in inflation that has occurred since the margins last changed in March 2013, but the company says fundamental changes in the oil industry and a sudden collapse in demand for petroleum products caused by the COVID-19 pandemic have rendered those old amounts obsolete.
"Petroleum pricing regulations in New Brunswick were created 15 years ago," Darren Gillis, Irving Oil chief marketing officer, said in an affidavit supporting the application. "They did not contemplate the challenges of the last several years and were not designed to react to a global pandemic."
If granted in full, the increases would apply to all New Brunswick wholesalers and would cost consumers about $60 million per year in higher retail prices.
The Energy and Utilities Board has tentatively scheduled a full hearing into the matter for the end of March, but in its application Irving Oil said its situation is dire and it cannot wait that long for relief.
Irving Oil's Darren Gillis is heading the company's effort to have the Energy and Utilities Board approve $60 million in increased petroleum margins for New Brunswick wholesalers. (Irving Oil)
Instead it is asking for 85 per cent of the requested increase on motor fuels (3.5 cents) and 99 per cent of the increase on furnace oil (3.0 cents) to be granted immediately pending the outcome of the full hearing next spring.
"The entire supply chain in under pressure and at risk," Gillis said in the application. "COVID-19 has exacerbated challenges for the industry and urgent action is required."
That tone has alarmed supporters of Irving Oil who fear the company is in trouble. Last week, the company announced layoffs at its Saint John refinery and worried suppliers have been mobilizing to urge the EUB to grant its request in full.
Eric Lloyd is president of Sunny Corner Enterprises Inc., an industrial construction firm in Miramichi that does business with Irving Oil.
Lloyd wrote to the EUB to say it "must take action to understand the economic forces that are stressing a very important contributor to our economy," and warned it is not "too big to fail" in asking its request be granted.
Another Irving supplier, Lorneville Mechanical Contractors Ltd. in Saint John, also sent a letter expressing concern about the company's financial health.
"We understand that Irving Oil has identified New Brunswick's highly regulated fuel pricing system as a challenge to its ability to operate reliably and sustainably," wrote Lorneville's president Jim Brewer, in endorsing immediate increases.
Local building trade unions warned the viability of the refinery itself could hinge on the EUB's decision.
"It would be devastating to lose this asset," wrote union president Jean-Marc Ringuette in his letter supporting Irving Oil's request.
But others are skeptical.
A number of anti-poverty, union and social justice organizations have signed up to oppose Irving Oil's application and a clutch of private citizens, like Saint John resident Mary Milander, also sent letters opposing the increase.
"I believe that that the people of Saint John and the whole province have suffered financially much more than the oil industry during the pandemic," Milander wrote to the board.
Natural Resources and Energy Development Minster Mike Holland stoked early controversy about Irving Oil's request by writing a letter to the Energy and Utilities Board telling it the application should be dealt with quickly. (Radio-Canada)
Although yet to start, the hearing has already been highly controversial following news last week that New Brunswick Natural Resources Minister Mike Holland sent his own letter to the EUB expressing concerns about Irving Oil's ability to supply products at current prices.
That led to criticism from all three opposition parties and a call for Holland to resign from Green Party Leader David Coon. Premier Blaine Higgs defended Holland's intervention.
The EUB has granted interim relief to applicants in other cases before, but normally on the condition money collected from consumers be returned if the increases are later found to be unjustified.
A complicating factor in Irving Oil's application for immediate relief is that Gillis has acknowledged that other than home heating oil sales, returning money to customers will not be possible.
"In the unlikely case the permanent increase for motor fuels is lower than the interim increase, Irving Oil cannot effectively and fairly rebate the difference," he said.
https://www.cbc.ca/news/canada/new-brunswick/irving-oil-wholesale-petroleum-price-1.5887093
Irving Oil request for 'urgent' wholesale price hike stalls over redacted evidence
Energy and Utilities Board adjourns to allow groups opposing price increase to argue for access to evidence
Irving Oil Ltd. is applying for a 62.8 per cent (4.09 cent per litre) increase in the allowed wholesale margin for motor fuels and a 54.9 per cent (3.02 cent per litre) increase in the margin for furnace oil. (Devaan Ingraham/Reuters )
Irving Oil's attempt to win immediate wholesale petroleum price increases from the New Brunswick Energy and Utilities Board stalled quickly Monday over objections from a variety of community organizations that too much of the application is based on secret material.
"The amount of information that is redacted in these documents makes it very difficult for our organization to meaningfully participate," said Abram Lutes with the New Brunswick Common Front for Social Justice
"It limits our ability to participate meaningfully and to advocate on behalf of low income workers and people in poverty."
Several other groups expressed similar concerns and the EUB's acting Chair Francois Beaulieu scheduled a hearing Friday morning to deal with the objections. That forced a delay in Irving Oil's request for immediate increases in wholesale petroleum margins at least until next week.
"The board will adjourn and we'll await the interveners to file their objections," said Beaulieu.
Until recently, Irving Oil has shown little outward concern about petroleum wholesale margins in New Brunswick. Since 2016, it twice declined to participate in scheduled reviews of the issue by the board, including the latest one launched in 2019.
COVID-19 has affected business
But the company says the COVID-19 pandemic has hit its business hard, and it now requires immediate changes.
In prepared remarks for the EUB on Monday that he was ultimately unable to deliver before proceedings adjourned Irving Oil marketing president Darren Gillis planned to outline the company's hardships
"We've reduced spending across the company, cancelled projects, and unfortunately reduced our employee and contractor workforce," said the prepared remarks.
"Significant sales declines (Jet Fuel, Marine Fuel and Transportation Fuel) and higher costs are having a serious impact on the entire supply chain. No one, no company is insulated from the impacts of the pandemic, including Irving Oil."
Company asks for substantial increases
The company is applying for a 62.8 per cent (4.09 cent per litre) increase in the allowed wholesale margin for motor fuels and a 54,9 per cent (3.02 cent per litre) increase in the margin for furnace oil.
It is asking that prior to a full hearing in late March, 85 per cent of the requested increase on motor fuels (3.5 cents) and 99 per cent of the increase on furnace oil (3.0 cents) be granted immediately
The increases are substantially more than the 11 per cent growth in inflation that has occurred since the margins last changed in March 2013. But much of Irving Oil's evidence in support of changes that large is not being publicly shared to protect company operational and financial information, an immediate sticking point Monday
Beaulieu noted the EUB itself along with public intervener Heather Black and any experts they hire are permitted to view all the material, but that did little to satisfy several participants.
Hafsah Mohammad with the Moncton social justice and climate action group Grassroots NB expressed support for Black's role but said more perspectives on Irving Oil's application are needed
"I think that has a problematic element with one person speaking for the entire public," said Mohammad.
"I thought that's why there are interveners. If it is solely on Heather Black I am concerned with just one person being assigned to this role."
Natural Resources and Energy Development Minister Mike Holland wrote a letter to New Brunswick's Energy and Utilities Board, in which he said an Irving Oil application for petroleum price increases should be dealt with quickly. (Radio-Canada)
Mohammad also pressed Beaulieu to explain his view on a letter sent to the EUB by Mike Holland, the New Brunswick natural resources and energy development minister, and its effect on the hearing..
Holland wrote to the board on Jan. 6, one day after Irving Oil filed its application, to back the company's request for an "expedited" review.
"I did not have any intention to comment on the letter but if an intervener does put it forward I'll comment on it," said Beaulieu.
"I'm putting it forward," said Mohammad
Beaulieu said all citizens have a right to send letters to comment on matters before the board, and he viewed Holland's as just one of many that have arrived from the public.
Irving oil lawyer concerned over delay
"Any person in the province of New Brunswick can comment on any proceeding of the board," said Beaulieu "We're independent and that will continue."
Irving Oil lawyer Len Hoyt expressed concern about delays in getting to the request for immediate price increases, but the application is effectively on hold for a week while the company's reliance on confidential information is dealt with first
"The urgency and the expediency of this is of upmost importance to my client." said Hoyt.
https://www.cbc.ca/news/canada/new-brunswick/irving-oil-price-hike-secrecy-1.5896468
Irving Oil wins right to keep its price hike evidence private
EUB rules groups fighting the application for petroleum price increases cannot view critical material
· CBC News· Posted: Feb 01, 2021 4:29 PM AT
Irving Oil lawyer Len Hoyt successfully argued there is no public benefit to letting groups opposed to the company's application see its evidence. (CBC)
Opponents of Irving Oil's request to increase petroleum wholesale margins in New Brunswick are vowing to keep up their fight against the application despite a ruling Monday denying them access to most of the evidence the case is based upon.
"We're going to continue to carry on," said Abram Lutes.
Lutes is with the Common Front for Social Justice, one of five community and union groups registered to take part in the hearing into petroleum margins in front of the Energy and Utilities Board that argued for the right to see all the evidence presented.
"It will be very difficult to argue the evidence itself when a lot of that substantial information is being withheld," said Lutes, after the ruling denying access was released
"It begs the question why have interveners in the first place?"
Much of Irving Oil's evidence supporting an increase in petroleum margins is redacted to protect company information. The EUB ruled Monday that is reasonable. (Submitted by Irving Oil)
Irving Oil's marketing and commercial divisions have applied for a 62.8 per cent (4.09 cent per litre) increase in the allowed wholesale margin for motor fuels, including diesel and gasoline and a 54.9 per cent (3.02 cent per litre) increase in the margin for furnace oil.
It is also asking that prior to a full hearing on that request in late March or early April, 85 per cent of the requested increase on motor fuels (3.5 cents) and 99 per cent of the increase on furnace oil (3.0 cents) be granted immediately because of intense financial pressures it says have arisen in the industry during the COVID-19 pandemic.
Abram Lutes is with the New Brunswick Common Front for Social Justice and says the group will continue to fight Irving Oil's application to raise petroleum wholesale prices despite not being allowed to see the evidence. (CBC)
The increases are substantially more than the 11 per cent growth in inflation that has occurred since the margins last changed in March 2013, but the company said explaining why will involve sharing commercially sensitive information that it needs to protect from competitors.
In its decision the board said Irving Oil is entitled to keep internal company information it submits to bolster its case for higher prices off the public record.
Acting board chair Francois Beaulieu said Irving Oil's evidence met the definition of what constitutes confidential information. That requires the board to protect it and the parties opposed to the application will not be allowed to view it.
Acting EUB chairman Francois Beaulieu delivered the ruling that Irving Oil met the requirement to keep evidence confidential. (CBC)
Instead, the evidence will be available in its entirety to the board, its professional staff and hired expert as well as to public intervener Heather Black and any expert she retains.
He said that will ensure the company's evidence is properly "tested" and should provide enough scrutiny to ensure the public interest is served.
In previous hearings on other matters the board has sometimes allowed multiple interveners to view confidential information if they sign non disclosure agreements, but Irving Oil made it clear last week it was also opposed to that arrangement.
"We do have a concern with that, and the only party that we are prepared to provide it to is the Public Intervener in addition to the Board," said Irving Oil's lawyer Len Hoyt on Friday.
Hafsah Mohammad, left, is with the Moncton community group Grassroots NB and is disappointed by the ruling evidence in Irving Oil's application to raise margins will not be widely shared. (Shane Magee/CBC)
Hafsah Mohammad represents Garassroots NB and was disappointed with the board's decision but said her group would continue to fight the application.
"Yes, absolutely," she said.
"We don't have access to all evidence and we will preface our arguments with that reality."
The board will meet Thursday to hear Irving Oil's request for an interim increase in allowed wholesale charges to cope with immediate financial pressures it says cannot wait for the full hearing in two months.
About the Author
https://www.cbc.ca/news/canada/new-brunswick/irving-oil-price-increase-request-1.5903522
Irving Oil's request for immediate price increases hits wall of opposition at EUB
Public intervener Heather Black joins community and union groups calling for application to be denied
· CBC News· Posted: Feb 05, 2021 6:49 PM AT
In a point-by-point dismantling of Irving Oil's request for interim price increases, public intervener Heather Black said, 'The applicant bears the burden of proof here and the applicant has not satisfied this burden.' (CBC News file photo)
Irving Oil's effort to win an immediate increase in petroleum wholesale margins hit a wall of opposition in front of the Energy and Utilities Board Friday, with public intervener Heather Black joining a collection of community and union groups in opposing the application.
"In my view, the applicant's motion should be denied," Black said in a point-by-point dismantling of the company's request for "interim" price increases.
"The applicant bears the burden of proof here and the applicant has not satisfied this burden."
Irving Oil's marketing and commercial divisions have applied for an increase of 62.8 per cent (4.09 cents per litre) in the allowed wholesale margin for motor fuels, including diesel and gasoline, and a 54.9 per cent (3.02 cents per litre) increase in the margin for furnace oil.
- Minister's letter backing Irving Oil application 'inappropriate,' former EUB intervener says
- Irving Oil supporters, skeptics lining up on opposite sides of price-hike request
On Friday it was also asking that prior to a full hearing on that request scheduled for April, 85 per cent of the increase on motor fuels (3.5 cents) and 99 per cent of the increase on furnace oil (3.0 cents) be granted immediately.
The immediate increase is necessary, it said, because of financial pressures that have arisen in the industry during the COVID-19 pandemic.
Darren Gillis, head of Irving Oil's marketing and commercial fuels divisions. At Friday's hearing, Gillis said the company is experiencing intense financial pressure. (Irving Oil file photo)
Company under financial pressure, exec says
Darren Gillis, the head of Irving Oil's marketing and commercial fuels divisions, said the company is under intense financial pressure that could interrupt its ability to supply petroleum to New Brunswick customers.
"Every day matters. Every day is important," said Gillis.
If granted in full, the requested interim increase would allow all New Brunswick wholesalers to charge about $1 million per week extra for petroleum products.
Under questioning from Hafsah Mohammad of the Moncton social justice and climate action group Grassroots NB, Gillis told the hearing the combination of no increases in wholesale margins since 2013 and a pandemic-driven drop in demand for petroleum products is causing the company significant trouble.
"We can no longer continue to absorb those costs, especially so in a worldwide pandemic," he said.
Hafsah Mohammad of Grassroots NB, who joined the hearing by Zoom, questioned Irving Oil on the specific causes of the financial trouble the company says it is experiencing. (Robert Jones/CBC News)
Acting EUB chair François Beaulieu asked why, if an emergency has developed inside the oil industry in New Brunswick, none of the three dozen other wholesalers in the province are publicly expressing support for Irving's call for increases.
"What puzzles me is we haven't received one letter of comment from a wholesaler that supports your application," Beaulieu said.
"Why should the board grant an increase if there is nobody else in this province, no other wholesalers, that support your request?"
Company lawyer Len Hoyt dismissed that concern, saying letters of support are of no evidentiary value.
He said that if other oil companies had written to the board, Irving Oil would be accused of orchestrating the effort.
"I really don't think you can take from the fact that there are no letters of comment filed by wholesalers that no wholesaler supports the application," Hoyt said.
No evidence offered of threat to supply, Black says
In her argument, Black listed a number of reasons to reject the application for immediate price hikes.
She said that although a threat to the supply of petroleum products in New Brunswick would qualify for interim increases, the company failed to offer direct evidence to support that such a threat exists, other than its own statements.
"I submit that the applicant in this case has not established whether or to what extent the current margin is squeezing wholesalers so much that it jeopardizes supply," Black said.
In addition, she said confidential cost information submitted by the company is not sufficiently detailed to separate out increases that apply to wholesalers from increases that might apply to the refinery, which is not covered by regulation.
She also noted that the company supplied no sales data to show how its business volumes have changed during the pandemic to support its claim of harm.
"Generally the evidence is composed of broad statements about the petroleum industry as a whole, the effects of regulation in general and the effects of the pandemic on the larger Irving Oil entity," said Black.
"There's nothing specific in the narrative about wholesalers."
In addition to those shortcomings, Black said the company's admission that it has no way to rebate motorists who are charged an interim increase if the increase is later found to be unjustified in a full hearing is a fatal flaw in the application.
"In my view, without the ability to rebate any over-collection, the board cannot grant the increase," she said.
Also opposing the application for interim increases were the community groups Grassroots NB, The Common Front for Social Justice, Leap4wards and Fredericton Solidarity, as well as the Canadian Union of Public Employees.
The EUB reserved decision in the matter.
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https://www.cbc.ca/news/canada/new-brunswick/irving-request-denied-eub-1.5917204
Rejected: Irving Oil request for immediate petroleum price hikes denied by energy board
Company needed to meet one of two tests to qualify for interim increases but fell short on both.
· CBC News· Posted: Feb 17, 2021 3:36 PM AT
Irving Oil Ltd. had requested an immediate increase in wholesale margins ahead of an April hearing to mitigate financial pressures brought on by the pandemic. (Devaan Ingraham/Reuters)
In a firm rejection of Irving Oil's request for urgent increases in petroleum wholesale margins, New Brunswick's Energy and Utilities Board ruled Wednesday that the company will have to wait for a full hearing in April to argue its case.
"The board concludes the applicants have not met the principles to be applied for an interim order," said acting EUB chair Francois Beaulieu during a twenty minute reading of the board's decision.
"The motion is therefore denied."
In January, Irving Oil's marketing and commercial divisions applied for a 62.8 per cent (4.09 cent per litre) increase in the allowed wholesale margin for motor fuels, including diesel and gasoline and a 54.9 per cent (3.02 cent per litre) increase in the margin for furnace oil.
In addition, the company asked that prior to a full hearing on its request in April, 85 per cent of the increase on motor fuels (3.5 cents) and 99 per cent of the increase on furnace oil (3.0 cents) be granted immediately because of intense financial pressures it says have arisen in the industry during the COVID-19 pandemic..
A hearing on that request was held earlier this month and on Wednesday, after 12 days of deliberation, the board said no.
EUB acting chair Francois Beaulieu said Irving Oil did not meet 'the principles to be applied for an interim order' and denied the request by the company. (Graham Thompson/CBC)
In the decision, Beaulieu said the two Irving Oil companies asking for the immediate increases needed to meet one of two requirements to qualify, but satisfied neither.
He said the company needed to offer evidence that waiting for a full hearing and decision on the main application would involve a "significant delay" or alternatively that waiting any length of time for increases would have a "deleterious impact" on the company and its ability to supply petroleum products.
Beaulieu said with a full hearing scheduled for late April, a decision is likely in May, which did not meet the definition of a significant delay. In addition, he said the company offered no solid evidence to show its financial circumstances are dire.
"The board has no conclusive evidence of any serious apprehended financial difficulties caused by the current duration of this proceeding on the applicants," said Beaulieu.
"The board concludes that the applicants have not established that the current wholesale margin for motor fuels and furnace oil are such that security of supply would be jeopardized during the period between its application and the likely timeframe of the board's final decision in this matter."
Abram Lutes is with the New Brunswick Common Front for Social Justice, an intervener in the hearings, and applauds the EUB decision. (CBC)
Irving Oil Ltd. did not immediately respond for comment on the decision.
Several community and union groups had intervened in the case to oppose the increases and appeared almost surprised they had won.
"I have a lot more faith in the process for sure," said Hafsah Mohammed with the Moncton climate action and social justice group Grassroots NB.
"I think this gives a lot of people hope that our society's checks and balances are in working order."
Abram Lutes, with the New Brunswick Common Front for Social Justice, also applauded the ruling.
"We're very pleased," said Lutes.
"It shows the board is taking public scrutiny of this process seriously."
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Didn't they already try that with a letter from the energy minister?