Linda Larson, the B.C. Liberal candidate and incumbent MLA, spoke to residents of the Anarchist Mountain community last Tuesday. The main topics of interest were healthcare and two-tier electricity rates, but Larson tried to avoid discussing electricity, instead bringing in FortisBC representatives to talk in her place. (Richard McGuire photo)
When about 35 Anarchist Mountain residents packed into the Summit Centre last Tuesday for a meet-the-candidate event with Linda Larson, they expected to engage her on the community’s hottest issue – two-tier electricity rates.
But the B.C. Liberal candidate and incumbent MLA immediately put the brakes on that discussion.
Unbeknownst to organizer Mark McKenney, president of the Anarchist Mountain Community Society, Larson announced she’d brought in three officials from FortisBC to address the residents’ concerns in her absence. Instead, Larson said she would only address other election issues.
The meeting followed a similar one earlier in March with NDP candidate Colleen Ross.
The electricity issue was timely. Earlier that day the British Columbia Utilities Commission (BCUC) finally released its answers to five questions posed to it in July 2015 by Bill Bennett, B.C. minister of Energy and Mines.
The minister’s questions came largely because of political pressure from the Anarchist community, led by retired federal energy economist Nick Marty.
Marty was not happy with BCUC’s response last Tuesday, which he termed “a whitewash,” arguing that the electricity regulator simply echoed the arguments of the two utilities, B.C. Hydro and FortisBC.
The process was flawed, Marty argued, because of the way the minister’s questions were framed and the fact that the minister took important considerations off the table – greenhouse gas emissions, electricity conservation, revenue neutrality resulting from two-tier rates and analysis of alternate rate structures.
The residents weren’t happy with Larson’s decision to duck the issue. Led by Marty and his wife Teresa, also an energy economist, they fired questions at her for more than 10 minutes anyway while she deflected.
Their key question was whether BCUC’s support for two-tier rates is consistent with the government’s stated energy policy of conserving energy and reducing greenhouse gases.
Under the two-tier rate, FortisBC bills customers at 10.12 cents per kilowatt-hour (kWh) for electricity used in a lower block of up to 1,600 kWh in a two-month billing period.
Any electricity used above 1,600 kWh is billed in a second block at the higher rate of 15.62 cents per kWh.
The problem for Anarchist Mountain residents, and others without access to natural gas, is that most of their electricity for space and water heating is billed at the higher rate.
The utilities argue that most customers, who consume most of their electricity in the lower tier, actually pay less than they would with a flat rate.
The Martys and other Anarchist Mountain residents argue this results in them subsidizing consumers with access to natural gas. And the higher rate they pay is not related to the cost of producing electricity.
It’s basic economics that if most customers pay a lower rate, they have less incentive to conserve, which Marty says contradicts the government’s stated policy.
The minority, like the Anarchist residents, can only cut their costs by burning wood, oil or other polluting fuels, they argue.
Larson, however, said the policy is achieving its objectives in other parts of the province.
“But it doesn’t matter if it’s not being achieved in our area?” Marty asked her.
“That I can’t answer,” Larson replied, as members of the audience called out: “Why?”
Larson told Marty she was arranging for him to speak to David Morton, the chair and CEO of BCUC, even though this “is not normally done.”
Colleen Misner, Larson’s constituency assistant, pointed out that Minister Bennett had not yet responded to BCUC’s report as it only came out that day. Larson needed to wait for the minister to respond first, she said.
Misner and Larson both told the audience that they’d forwarded every single email and letter they’ve received on this issue.
“We have not quit and we will keep doing it,” said Larson. “I absolutely hate it. I would love it if everybody had access to natural gas.”
“Just access to fair prices,” an audience member shouted out, prompting shouts of agreement and applause.
After answering questions on healthcare, ICBC, the proposed national park reserve and fallen rocks on the highway, Larson and Misner slipped away, leaving the Fortis representatives to face the crowd alone.
“I hope you can let me go because I was on the road before eight this morning, over to Grand Forks and back and then back up here,” Larson said. “I would like to go home.”
Handling most of the questions was Neal Pobran, a senior manager in community relations.
With him was Carol Suhan, manager of conservation and energy management, who tried to tell the residents about the programs FortisBC offers to retrofit homes to reduce energy consumption.
McKenney, the Anarchist president, pointed out that all the affected homes were built in the last 10 years and were built to state-of-the-art energy standards. He estimated that 50 of the 150 homes have installed geothermal systems.
“So, people have done everything possible,” McKenney told Suhan.
Pobran introduced his other colleague: “Wade actually looks after our natural gas customers in the area down here, so any questions about natural gas…”
“Where is it?” people shouted. That was their only question for him.
While the Fortis officials were on the receiving end of the community’s frustration, several people pointed out that the problems weren’t their doing, and they were just sent in “to face the wolves.”
Referring to Larson, McKenney told them: “She left the cannons here to blow you guys up. She lit the match and put in the cannons. You guys are so nice to come here.”
Their main takeaway: many of the Anarchist residents would prefer time-of-use billing, which offers lower rates for electricity consumed in off-peak hours.
FortisBC did offer time-of-use billing until the BCUC imposed the two-tier system and now no new customers can switch to it.
Afterwards, Marty said he thinks Larson tried to push responsibility onto BCUC and Fortis instead of accepting that the government is ultimately responsible for the two-tier system, which is a response to government policy.
The officials sent to the meeting were the wrong ones, he said, adding it would have been better to have someone from regulatory affairs.
“Bringing in those Fortis people was a waste of time,” said Marty. “I’m surprised that she didn’t drag some people in who were working on the hydro lines. It would’ve been just as relevant.”
RICHARD McGUIRE
Osoyoos Times
Neal Pobran (left), senior manager of community and Aboriginal relations with FortisBC, responds to questions and concerns of Anarchist Mountain residents about two-tier electricty rates. To his right is Carol Suhan, manager of conservation and energy management, who came prepared to talk about Fortis programs to help homeowners make their homes more energy efficient. She was told the homes on Anarchist are all new and residents use state-of-the-art energy conservation already. (Richard McGuire photo)
