Marc Eliesen

How to Fix the National Energy Board, Canada's 'Captured Regulator'

The National Energy Board (NEB) is a “captured regulator” that has “lost touch with what it means to protect the public interest.”

That’s what Marc Eliesen — former head of BC Hydro, Ontario Hydro and Manitoba Hydro, and former deputy minister of energy in Ontario and Manitoba — told the NEB Modernization Expert Panel on Wednesday morning in Vancouver.

The bottom line is that the board’s behaviour during the Trans Mountain review not only exposed the process as a farce, it exposed the board as a captured regulator,” he said to the five-member panel.

Tweet: “Regulatory capture exists when a regulator ceases to be independent and objective.” http://bit.ly/2kUzoTv #cdnpoli #EnergyEast #TransMtnRegulatory capture exists when a regulator ceases to be independent and objective.”

The Trans Mountain pipeline was reviewed with what many consider a heavily politicized NEB process, one that Trudeau had committed to changing prior to issuing a federal verdict on the project.

Revealed: Inside the B.C. Government's Site C Spin Machine

BC Hydro officials and members of Premier Christy Clark and Energy Minister Bill Bennett’s offices were all involved in a coordinated attempt to discredit DeSmog Canada’s reporting on the $8.8 billion Site C hydroelectric dam, according to documents obtained through Freedom of Information requests.

The documents detail a flurry of e-mails following a DeSmog Canada story that quoted former BC Hydro CEO Marc Eliesen saying that Site C was proceeding without due diligence, would lead to escalating hydro rate increases and was “scheduled to become a big white elephant,” a story later referenced by the New York Times.

BC Hydro officials were concerned that major B.C. media would pick up on the DeSmog Canada story, based largely on a BC Hydro progress report to the B.C. Utilities Commission. That report noted that Site C had fallen behind on four out of seven key milestones and outlined project risks and reasons why Site C had spent more money than anticipated by the end of last March, while saying that the project’s overall forecast still remained on track.

Why It's Not Too Late to Stop the Site C Dam

“Hydro’s demand forecasts are persistently and systematically wrong. There is no reason to believe that much new power, if any, will be required in the next 20 to 30 years. But if there is, there are several alternatives available which are markedly less expensive and less damaging to Aboriginal interests, fisheries and the environment generally, than Site C.”

Those are the words of Harry Swain, who chaired the review of the Site C dam, in an affidavit filed in federal court this week.

Exclusive New Photos: The B.C. Government's Frantic Push to Get Site C Dam Past 'Point of No Return'

Site C dam construction

Just two years ago only four in 10 British Columbians had even heard of the Site C dam. Now, the project — one of the most expensive and environmentally destructive in B.C.’s history — is making international headlines.

With construction ramping up, the high cost of the Site C dam is becoming more visible, and not just on the landscape.

Residents are being forcibly removed from their land. More than 100 kilometres of river valley — much of it agricultural land — is slated for flooding. Independent review processes, meant to ensure the project serves the public interest, have been circumvented and indigenous rights have been trampled.

Tweet: EXCLUSIVE photos: what working toward #SiteC’s ‘point of no return’ looks like http://bit.ly/2ejaJqk @christyclarkbc #bcpoli #bcelxn17B.C. Premier Christy Clark has vowed to get the $9 billion Site C dam past the “point of no return” before the May 2017 provincial election, despite a torrent of experts questioning the demand for the power.

Aided by permits issued by the Trudeau government, construction on the project is rushing ahead, while First Nations wait on a court ruling that could stop construction.

Thanks to donations from you, our readers, DeSmog Canada was able to send celebrated photographer, Garth Lenz, to the Peace to capture the ongoing construction and the landscapes and lives that stand to be affected by the Site C dam.

While the destruction may alarm some readers, it's worth noting that most of the work so far has been isolated to in and around the site of the proposed dam and more than 80 kilometres of river valley remains untouched at this stage. 

BC Hydro Injunction Against Site C Dam Encampment 'Fundamentally Flawed': Former CEO Marc Eliesen

Former BC Hydro CEO Marc Eliesen says BC Hydro’s claim that a one-year delay in Site C dam construction will add $420 million to the project’s $8.8 billion cost is “effectively illusionary” and based on “fundamentally flawed” analysis.
 
Eliesen made the statement in an affidavit filed February 16 in the B.C. Supreme Court, in response to BC Hydro’s application for an injunction to remove Peace Valley farmers and First Nations members from a camp they have occupied since New Year’s Eve.

The application, to be heard February 22, seeks to prohibit anyone from physically interfering with Site C work or counseling others to do the same. If the application is approved, campers who remain at the site will risk arrest.
 
The peaceful camp, at the Rocky Mountain Fort site on the Peace River’s south bank, has prevented clearcut logging of the surrounding old-growth forest in preparation for Site C flooding. Court documents filed by BC Hydro say the area around the fort site must be cleared immediately because it is slated for a “potentially acid-generating” waste rock dump. The documents note that a berm will be constructed to prevent waste from entering the Peace River.
 
In his affidavit, Eliesen, who has also headed Ontario Hydro and the Manitoba Energy Authority, says BC Hydro’s testimony in support of the injunction application “fails to provide the proper and comprehensive historical context of BC Hydro’s determinations regarding this project” and is “without merit.”

EXCLUSIVE: Site C Dam ‘Devastating’ for British Columbians, Says Former CEO of BC Hydro

Site C dam flood reserve level

In an exclusive interview with DeSmog Canada, former BC Hydro CEO Marc Eliesen says ratepayers will face a “devastating” increase in their electricity bills if the Site C dam is built and emphasizes there is no rush to build new sources of power generation in B.C.

With Site C, BC Hydro ratepayers will be facing a devastating increase of anywhere between 30 and 40 per cent over the next three years,” Eliesen told DeSmog Canada in his first interview on the subject.

There’s no rush. There’s no immediate need for Site C or any other alternative energy,” he said.

Eliesen’s comment about the lack of immediate need for the power echoes statements made by Harry Swain, the chair of the panel that reviewed the Site C hydro dam for the provincial and federal governments. In March, Swain told DeSmog Canada the B.C. government should have held off on making a decision on the dam.

Top 10 Climate and Energy Stories of 2014

Suncor tailings pond

With 2014 drawing to a close, DeSmog Canada decided to take stock of its most popular stories of the year.

Readers came in droves for our in-depth reporting on climate change, oilsands and oil pipelines, but they also loved articles about potential solutions to our climate change woes. Indeed, two of our Top 10 posts are on Canada’s geothermal potential.

Without further ado, here are DeSmog Canada’s Top 10 articles of 2014. Thanks for reading!

1. Bill 4 Passes: B.C. Parks Now Officially Open…To Pipelines and Drilling. More than 10,000 citizens wrote letters and signed petitions to try to stop the B.C. government from passing Bill 4, which allows for industry (and others) to carry out “research” in provincial parks related to pipelines, transmission lines, roads and other industrial activities that might require park land.

Energy Executive Quits Trans Mountain Pipeline Review, Calls NEB Process A ‘Public Deception'

Marc Eliesen

An energy executive is weighing in on the federal review of Kinder Morgan’s Trans Mountain oil pipeline expansion with a scathing letter that calls the National Energy Board’s review process “fraudulent” and a “public deception” — and calls for the province of British Columbia to undertake its own environmental assessment.

Marc Eliesen — who has 40 years of executive experience in the energy sector, including as a board member at Suncor — writes in his letter to the National Energy Board that the process is jury-rigged with a “pre-determined outcome.”

Eliesen is the former CEO of BC Hydro, former chair of Manitoba Hydro and has served as a deputy minister in seven different federal and provincial governments.

In his letter, Eliesen tells the National Energy Board (NEB) that he offered his expertise as an intervenor in good faith that his time would be well spent in evaluation Trans Mountain’s proposal.

Unfortunately, I have come to the conclusion that the board, through its decisions, is engaged in a public deception,” Eliesen writes. “Continued involvement with this process is a waste of time and effort, and represents a disservice to the public interest because it endorses a fraudulent process.”

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